Role of Recognition
Recognizing employees for positive behavior usually motivates employees to continue in a way that earns recognition again. However, recognizing employees is not a one-time event.  In fact, if it is just a one-time event, it will be widely ignored by staff members. Instead, recognition needs to be part of the culture of the organization in order to be effective.

Recognizing employees builds relationships between managers and employees; this relationship leads to loyalty to the company. These moments of recognition can also be the start to great conversations about job performance, skill development, etc…

Recognition does not need to be formal to be effective. Formal recognition is important but informal recognition also has a place at the table. Formal recognition is good for employee years of service, retirement, and sales increases. Informal recognition is better at reinforcing corporate culture on a daily basis.

Bottom Line Benefits
By integrating internal and external marketing, companies can motivate their employees and their customers at the same time. Motivated employees give better service, and better service leads to customer loyalty. This is just one way recognition can have a positive effect on the bottom line.