Across all industries one fundamental truth remains constant: people thrive when they feel valued. Employee recognition is more than just a kind gesture; it's a psychological catalyst that fuels motivation, boosts morale, and enhances overall performance. Furthermore, people are more likely to strive for excellence when they are recognized with a tangible award. Here are the psychological principles behind why recognition has such a profound impact.
A Need
In 1943, American Psychologist Abraham Maslow created the Hierarchy of Needs, a foundational philosophical theory regarding human motivation. Often depicted in a pyramid, Maslow argued that our psychological and self-fulfillment needs can only be achieved once our basic needs are met. From bottom to top, the five needs are: physiological, safety, social belonging, esteem, and self-actualization. Receiving recognition can positively impact the three middle needs of the pyramid:
- Safety: If an employee never receives recognition, they may not ever realize that they’re doing a good job. For someone worrying about their job security, recognition can offer instant relief and a sense of security in their position.
- Social Belonging: Recognition creates a positive and uplifting work environment, fosters team collaboration, and even helps to improve trust.
- Esteem: When an employee is recognized for a job well done, they feel a sense of accomplishment and pride for their hard work. This external validation provides a boost to one’s self esteem.
Training the Brain
Employee recognition promotes positive psychological functioning: feelings that lead to self-acceptance, personal growth, and social contribution. When we receive appreciation, our brains produce a few different chemicals. The most commonly known are dopamine and serotonin, which make us “feel good.” The other is oxytocin, which reduces stress and helps us build trust. Exercising gratitude also stimulates the prefrontal cortex, which is the part of the brain responsible for positive emotions, decision making, reward, and motivation. Regular use of these neural pathways strengthens them, making it easier to express gratitude and feel motivated over time. By practicing recognition daily, you literally “train” your brain to express more gratitude, become more motivated, and have an overall more positive outlook.
The Effects
Not only is recognition craved on a psychological level, but it can have a powerful impact on daily business operations. A recent study by Nectar found that a whopping 83.6% of participants said recognition impacts their motivation to succeed at work. The same study found that 71% of employees would be less likely to leave their company if they were recognized more frequently. Not only can recognition help with employee motivation, engagement, and retention, but the opposite effect is true. Without it, employees may struggle to feel a sense of belonging or pride, leading them to jump ship. It’s also worth noting that the act of awarding an employee with something they would proudly wear outside of work helps market the business to others. For instance a high-end necklace or ring that incorporates the company’s logo can start a conversation and spark some new business.
Making it Tangible
When recognizing employees, custom awards can play a valuable role in the psychology of recognition. These tangible symbols capture the essence of an individual’s contributions, providing something that can be seen, touched, and cherished long after the moment of recognition is over. For over 55 years, E.A. Dion has been crafting custom jewelry awards that let employees know just how much they’re appreciated. Our dedication to quality and customer service has never wavered, and we love helping companies elevate their recognition programs.
Getting started with Dion is easy: simply browse our gallery of past products for some inspiration, then