Important Reasons for Employee Recognition Awards

Published: 09th November 2010
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Recognition awards have become very important and very powerful in consideration to employee relations on many levels. Business and company owners who have not yet begun to utilize employee recognition awards to improve their business may want to seriously consider implementing an incentive program of this nature to create a work environment that is comfortable and productive for virtually everyone. After reviewing reasons for awards of this incentive nature for employees, there should be more understanding for the importance of employee recognition awards.

One of the first important reasons for employee recognition awards is to promote motivation amongst employees. Crystal awards, trophies and other such gifts will work wonders for employee motivation. Not only can these awards motivate the recipient, they are able to motivate the recipient's co-workers into some healthy competition to see who the next award winner will be. Gifts of this sort for outstanding and exceptional employees has been shown more than once to increase the employee retention rates more than the gift of cash or gift cards. Another important reason that businesses and companies of all sizes should award employees with commemorative awards of various nature is for public recognition of the individual and even for the business. Presenting exceptional employees with recognition awards at an award ceremony gives the recipients the chance to be publicly recognized for their accomplishments. Public recognition for accomplishments is just another motivational factor of employee recognition awards. While this is certainly for the benefit of the employee, it is also a great benefit to the business presenting the award. Other employees will quickly find out that excellent work is both appreciated and awarded, which will enhance the overall work environment and business' success.

Another important reason to give employee recognition awards that is not as often considered is to avoid rewarding an employee with cash or gift cards, as those items are taxable and will not be a constant reminder of an employee's true value. Tangible award merchandise is generally not subject to personal income taxes and more employees prefer the award of recognition over the award of a pay raise or a gift card. Pay raises put employees into different tax brackets, resulting in an increased amount of money being withheld on their pay checks.

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