Remember that recognition is part of an interactive communication process. A key component of labor relations, recognition can be expressed at various hierarchical levels within an organization. More accurately, recognition is unrelated to hierarchical levels, as it is expressed by people at all levels of the organization, regardless of professional status. The levels of employee recognition therefore refer to the sources and bearers of recognition, and to the dynamics between people receiving and expressing recognition. There are five levels of employee recognition: institutional or macro, vertical or hierarchical, horizontal, external, and social.

Institutional policies and programs affirm and support an organization’s commitment to recognizing employee contributions and involvement in the work process as a whole.

Recognition between managers and the employees they supervise occurs at the vertical or hierarchical level. It may be expressed both from the top down and from the bottom up. Simply put, the vertical or hierarchical level is a reflection of the existing power relationship between the person expressing recognition and the person receiving it.

At the horizontal level, recognition is expressed between peers and coworkers. It is even more important because it comes from those in the best position to judge work quality.

Recognition at the external level has to do with service delivery and involves customers, suppliers, consultants, and other partners. In the event of a sharp decline in working conditions and a lack of recognition within the organization, employees can turn to these external partners for some form of recognition.

More broadly, recognition can occur in relationships between the community and employees or various organizations. This recognition can take a variety of forms: acknowledgement of an organization's social utility or the social contribution of certain trades, e.g., firefighters or nurses. Recognition can also follow the opposite direction, as when a worker seeks to give back to the community through volunteer initiatives.