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Strategic Recognition: Building a Culture of Employee Appreciation
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Kartikay Kashyap

March 29, 2025

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As per the cultural fabric of an organization, different companies celebrate and recognize success in different ways. However, it is important for organizations to practice recognition effectively in the workplace. This means companies need to practice strategic recognition in the workplace. What does this mean? Strategic recognition involves more than just reactive and occasional “Thank You.’ It is more about creating a culture of employee recognition. Companies that practice strategic recognition live it every day. Numerous research and studies have proved how vital employee recognition is and its impact on employee productivity and motivates them to achieve higher milestones.

Understanding the recognition needs of employees

It is easier to understand the recognition needs of employees through Abraham Maslow’s needs theory. Maslow’s theory forms a need pyramid where basic psychological needs such as water and food create the pyramid’s foundation, moving to safety, love, and belonging, taking the mid spot, and esteem and self-actualization, taking the top position. As part of this pyramid, the core of self-belongingness and esteem level is appreciation. Moreover, as per Maslow’s needs hierarchy, the higher up you go on the pyramid, the more difficult it is to satisfy those needs. This means giving self-esteem and belongingness is a psychological need and is difficult to fulfill. At the workplace, monetary rewards and security are easier to satisfy in employees, but achieving self-esteem for better retention is a little difficult. That is why we need a scientific way to achieve recognition and appreciation.

The science behind employee recognition

Understanding how we feel after recognition and appreciation is explained by science. When humans experience gratitude and acceptance, the brain releases dopamine and serotonin; they act like neurotransmitters responsible for making us feel good, regulating our emotions, and responding to stress. Gratitude and appreciation are catalysts to manage our stress levels. Moreover, a strategic recognition also stimulates other emotions in the brain and increases the level of motivation at the workplace.

The Pillars of Scientific Employee Recognition

As per the science of employee recognition, there are certain pillars of appreciating and recognizing individuals in the company. Based on these pillars, companies can organize their recognition strategy to create a better impact.

1. Frequency

The frequency of how often an employee is appreciated for his/her work matters. The more appreciation they receive, the more impactful it will be. As per a Gallup survey, only 40% of employees feel they get the right recognition at their workplace. Companies need to design their recognition strategy in such a way that they can appreciate their people more frequently.

2. Authentic Appreciation

Appreciation needs to be authentic and genuine. Employees are smart enough to understand whether an appreciation is made just for the sake of it or the organization means it. For instance, a manager who appreciates his team for a return favor would seem fake. Rather, unconditional appreciation by managers appears much better.

3. Personalized

A more than one-size-fits-all approach is needed today. All organizations need to do is ask the employees what they want. Internal surveys help an organization know how they would want to recognize their employees. As per the responses and data received, organizations can personalize the employee experience and make a better impact. For instance, some people prefer to be appreciated privately, while others prefer public recognition.

4. Equitable

When recognizing employees, companies need to have an equitable approach. There cannot be a case where one team is getting more recognition than the others. For instance, in many sales & revenue-driven organizations, business development and sales team employees are more praised since they directly impact the company’s revenue. But some people are working behind the scenes, such as administration. They deserve to be appreciated, too.

5. Create a culture of recognition

There is a difference between recognizing people occasionally and making appreciation a way of life at the workplace. People should feel free to acknowledge their peer’s good work. This takes a long time but gives better results in the long run.

Organizations can build recognition programs that can fulfill the needs of the above pillars of recognition. Since many companies are moving towards digitization and tuning their heads to technology for answers in this VUCA world, digitizing the Rewards & Recognition (R & R) function is a good step towards building an impactful R & R strategy.