Why does employee recognition matter?

Employee recognition — or lack thereof — can be a major source of discontent for employees, according to Victor Lipman, a Forbes contributor to the column Management Matters. In his 24 years in management in a Fortune 500 company, Mr. Lipman writes that employee recognition was an issue that came up on almost every single feedback survey he has ever seen.

The secret to employee recognition, however, is not necessarily institutionalized recognition or reward programs. It's simpler and lower-cost: A genuine word or two of praise from a supervisor. This tactic can be difficult for managers to implement and follow through, despite how easy it seems, according to Mr. Lipman.

The following are three tips to hone employee recognition, from Harvard Business Review:

1. Immediate supervisors should be in charge of doling out praise and recognition to those whom they manage. Immediate supervisors are crucial to how employees feel about a company.

2. Timing of recognition is important. Don't hold back praise until a review. Rather, give praise where and when it is due.

3. Creating a culture where employees are engaged in one another's work is also important. Employees also derive satisfaction from recognition offered by their peers.

Interestingly enough, the top cities for employee engagement are similar to the top cities for employee recognition, according to data published in Forbes, indicating a possible link between recognition and whether an employee ultimately feels engaged in his or her work.

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