There is a plethora of documentation in the business world supporting the idea that recognizing the performance of employees does, in fact, inspire better and better performance. By setting up rewards and recognition programs , companies are able to create an upward spiral of success both for individual employees, and for their entire company.
Awards and rewards are a form of positive feedback. Each award won generate positive feelings and motivates employees to seek the next award. Companies with a regular program of rewards send a clear message to their employees as to what they consider to be outstanding performance and how much they value that performance. Companies that set high goals for their staff and then don’t acknowledge when those goals are met quickly find themselves with an unmotivated or even hostile work environment as employees lose faith in management and owners.
Recognition programs require a commitment on behalf of management. They must take the time to set the program standards and the resultant rewards. They must then implement and administer the program consistently. This is an ongoing duty, not a one-time event. However, the improvement in employee performance and company morale will quickly translate to better profit margins and improved customer relationships that will secure the financial future of the company.