Article: How recognition matters in India & how to make it effective

Employee Engagement

How recognition matters in India & how to make it effective

Employees in Indian organizations with strong recognition practices generate 1.5x more ideas than organizations which provide weak recognition, according to research by the O C Tanner Institute.
How recognition matters in India & how to make it effective

Employees are paid to do their job, but salary is no longer a substitute for due appreciation and recognition in the long run. Recognition drives motivation to work and high performance. The O.C. Tanner research institute found that the impact of recognition is on 4 major areas:

Increase Engagement

Employees who receive strong recognition are tent to be far more engaged. Formal and informal recognition both contribute to better drive and determination, better work relationships, and creating stronger connections to the organization. The research found that in India for e.g. among employees who are strongly recognized, 81% felt connected to their company. This number fell to just 21% among employees who were recognized weakly.

Engagement and recognition eventually mutually reinforce each other. 


Encourage innovation 

The research found that Indian companies with strong performance recognition generally tend to be more innovative, generating 1.5x as many ideas per month compared to those who aren’t recognized well. This makes sense because recognition encourages more ideation. 

Improve trust and manager relationships

Recognition builds and strengthens work relationships. This Towers Watson research found that recognition increases manager’s trust, communication, accountability and goal-setting attributes. 

O. C. Tanner India research reports that 83% of those who receive strong recognition share a strong relationship with their direct managers. However, only 38% of those who received weak recognition reported the same. 

Attract and retain talent

Workplace studies highlight that recognition is now a necessary strategy to attract and retain top talent. For e.g., The Drivers of Great Work study found that employees who are consistent high performers in their organizations were much more likely to work for companies with excellent recognition and promotion practices. 

How to make recognition more effective?

The recognition approaches must create opportunities for the employees to feel pride in their connection to the organization and allow them to share that experience with their loved ones. Public announcements and celebratory communication are especially important as they allow the employee to get noticed by the senior leadership. The O C Tanner Institute research found what the most preferred forms of recognition in India are:

  • A letter or certificate of achievement that can be displayed and kept as a keepsake which is personalized with the description of accomplishment for other employees and management to see
  • 71% employees feel that inclusion of their organization’s logo on their award is meaningful to them
  • Travel and electronics ranked highly

As an integral part of Total Rewards, giving recognition can no longer be just an optional practice. Given its effect on great performance, engagement and overall business metrics, it has become a necessary strategy in delivering sought-after business results.

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Topics: Employee Engagement, Recognition Services

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