For the organization, daily recognition generally improves the quality of work life. The work environment is more cordial, and a cooperative atmosphere emerges.
Employee recognition boosts employees' sense of effectiveness and desire to be a part of the organization, since their contribution and efforts are appreciated and acknowledged. Employees feel they have a place within the organization and perceive their contribution as unique and valuable. This encourages them to become involved in the work process and dedicate themselves to company projects, leading to a certain degree of employee motivation and retention.
Productivity and performance are both influenced by employee recognition. Employees put more into their work and feel involved in the work process. This boosts company production and, consequently, performance.
Employee recognition promotes learning (Lippit, 1997) and is a foundation for learning organizations (Griego et al., 2000).