Recognition is closely tied to the concept of identity. Identity is built initially in the private sphere and continues to develop in the public sphere, particularly in the workplace. Work therefore becomes "a crystallizing medium for identity." Through their work, individuals can define themselves as human beings and confirm their earlier development. In the public sphere, identity is built through others' perception of us, and especially the self-perception they mirror back to us. Employee recognition can promote identity development by putting individuals in a positive light and acting as a catalyst for personal growth.
Employee recognition also helps make work meaningful, giving it a renewed sense of dignity and the ability to be a source of pleasure and satisfaction. More than the completion of tasks for financial reward, work becomes a source of meaning.
Recognition helps reinforce employees' sense of personal skill and self-esteem. Daily expressions of gratitude and an appreciation of know-how lead employees to see themselves in a positive light and understand their value within the organization.
Bourcier & Palobart (1997) highlight the importance of employee recognition as a source of motivation and satisfaction. When employees believe they have a well-defined place within the organization and their contribution is fully appreciated, they are more apt to dedicate themselves to their work and feel motivated to do their best. Motivation drives action, in some sense, and determines work behaviors. Recognition also fosters a feeling of competency and gives employees a certain sense of satisfaction. By contributing to employee satisfaction and motivation, recognition has a positive impact on company productivity and performance (Applebaum & Kamal, 2000).
Work can directly affect employee mental health. Mental health at work refers to workers' sense of psychological, physical, and emotional wellbeing or illbeing at work. According to a study conducted by the Chair in Occupational Health and Safety Management at Université Laval, the level of psychological distress of hospital, university, forest, and metallurgy industry workers is 43%-more than double the rate for all Quebecers (20%) (Brun et al., 2002). Among the factors cited as causes of this distress, lack of employee recognition comes in second, right behind overwork. In short, the lack of employee recognition may be considered as a leading risk factor for high psychological distress at work.