Businesses and companies too often forget about the importance of employee recognition and the effects it can have on employees and job performance. Many businesses think they're saving time and money by skipping out on employee recognition programs, but in the long run, they're actually losing out on time, money, work quality, and employee retention. It's important to take the time to appreciate an employee's hard work in order to better improve the company and business as a whole. Here are five reasons why employee recognition is so important.

Improved Productivity

Implementing employee recognition and reward programs can let them know that the company values their work. Exemplary employees can rest easy knowing their extra effort will not go unappreciated. Through a recognition program, employees will understand what standards they are required to work under and what is considered above average work. Knowing these two keys will improve their productivity and work quality since they will strive to achieve recognition through the program. Companies with no recognition programs will always receive the same lackluster work from their employees since they know that hard work is not being rewarded.

Establishes Teamwork

With an employee recognition program, a sense of teamwork among workers is greatly enhanced. Producing excellent and recognition-worthy work to improve the company and business gives them a sense of unity and need for teamwork. Employees who strive to have their work recognized through the program will also be more willing to help out their co-workers when they need assistance. If there is no recognition program in place, employees will be less willing to help each other out and will adopt an "every man for himself policy" when it comes to workload. Their extra efforts aren't being recognized, so they see no point in assisting their fellow co-workers.

Comfort Within Work Environment

There are a number of ways to show employee recognition and it doesn't have to be necessarily through a program or rewards. It can be through free amenities and services offered in the workplace. If employees have access to these facilities, they will be more comfortable in their work setting. This will help in creating happier employees, which in turn will produce better work. Even through the simple employee recognition program, employees will still find comfort and happiness in the work environment knowing their hard work going appreciated.

Friendly Competition

Implementing a way to recognize your employees can help establish a sense of friendly competition among them. In the bigger picture, this friendly competition serves as a way to see who can produce the best quality work efficiently and consistently. This will perpetuate the quality of work, constantly improving it and the skills of your employees. Be sure to implement the recognition program correctly and let your employees know the standards on which they will be judged upon. Picking an employee at random to be recognized will make them grow bitter towards each other since a lackluster and lazy employee could be recognized over one that goes the extra mile.

High-Quality Employees

It's no secret that the best businesses and companies boast the best and happiest workforce. They also have multiple forms of employee recognition implemented. Employees want to work hard for great companies with excellent employee recognition programs and services. They will compete against other potential employees and produce the highest quality work in order to secure their spot in a great company. Recognition programs will also help your business retain hard working employees since they understand their work is being valued. Workers often leave companies because they feel as if they company doesn't care about them, which makes them feel the same way about the business. They want to move onto better companies.