Recognition of work motivates employees to perform better, fosters loyalty, builds trust: Study

Mint

16-06-2025

Guwahati, Jun 16 (PTI) Due recognition of work by a company always motivates its employees to perform better, builds trust and gives them a sense of belonging to the organisation, a study by two HR technology firms said.
Guwahati-based Vantage Circle and Mumbai's 'Great Place To Work India' have jointly published a research report, 'The Recognition Effect: A Leadership Blueprint for Emotionally Intelligent Workplaces', which uncovers how recognition of efforts, when done right, becomes a transformative force for workplace culture and performance.
"At the heart of the study lies a powerful finding: recognition isn't just about acknowledgement, it is a strategic lever for trust, agility, innovation and retention. Organisations that build high-recognition cultures outperform their peers across multiple dimensions of employee and business outcomes," the study mentioned.
In such a scenario, 91 per cent of employees surveyed feel motivated, 94 per cent say their organisation is a great place to work, and an equally high percentage affirms that their companies deliver excellent customer services, it added.
"Nearly all respondents in such environments also associate their organisation with innovation and express a strong intent to stay," the paper stated.
The research also brings to light how recognition of work is experienced across gender, generations, roles and tenure -- signalling the need for more inclusive approaches.
Commenting on the findings, Vantage Circle CEO and Co-founder Partha Neog said, "The true power of recognition and rewards lies not in what is given, but in what is genuinely felt. When done with intention, recognition becomes more than a moment -- it becomes a cultural signal that shows people they matter."
Due recognition of an employee's work builds trust, pride and belonging for the organisation, he said.
"We believe that a culture of recognition develops engaged and loyal employees. When organisations make employee appreciation an intentional and integral part of workplace culture, they unlock the true potential of their people," Great Place To Work India Chief Executive Officer Balbir Singh said.
Recognition in the workplace helps employees see that their company values them and their contributions, fostering loyalty and engagement, he added.
"Recognition programmes are a crucial part of the employee experience and a key driver of perceptions of fairness in the workforce, Singh said.