“The Recognition Effect: A Leadership Blueprint for Emotionally Intelligent Workplaces,” a study by Vantage Circle and Great Place To Work India, highlighted the effect of recognition on performance, loyalty and trust.
“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 stated.
The study added that in companies with a strong recognition culture, 91% of employees surveyed feel motivated and 94% consider their organisation a great place to work.
Recognition of work not only boosts employee morale but also drives business outcomes. 94% of the companies that recognise the work of these employees excel in customer service. 93% display agility and innovation, while 92% have high employee retention.
“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,” said Partha Neog, Vantage Circle CEO and Co-founder.
The study also highlighted that recognition can vary depending on age, gender, and other societal factors. Compared to 70% of men, only 65% of women feel that their companies duly recognise them. Similarly, recognition for Gen Z employees was much less than that of Gen X, with a difference of 14 points. Furthermore, non-managerial employees and new hires are significantly under-recognised.
The study highlights the importance of work recognition and how it can impact performance and results. With simple but effective plans in mind, companies can significantly boost their employee retention and motivation.