AN organisation’s productivity depends upon the competence of its manpower. In manufacturing plants, the good quality and efficiency of the machinery helps enhance output. But the efforts of those operating the machinery and other equipment also needs to be recognised regularly by the management to motivate them further.

According to one analysis, workplace recognition “provides a sense of accomplishment and makes employees feel valued. Recognition not only boosts individual employee engagement, but it also has been found to increase productivity and loyalty to the company, leading to higher retention”.

The culture of employee appreciation or recognition is more common in companies in the West than those in South Asia. Employees who are appreciated individually for their work seldom think of leaving the organisation. They work not just because it’s their job, but because the career is an integral part of their life.

Unfortunately, in Pakistan’s corporate sector, a task well done is hardly recognised by the managers. There are exceptions, and in progressive organisations some managers do express their appreciation to employees — though perhaps not that frequently.

Appreciation has a magical impact on employees.

At times, a high-ranking leader or the CEO may recognise the performance of an employee two to three steps below their rank in the management hierarchy. Such appreciation has a magical impact on the employees as it is not only instrumental in improving their performance but also a morale booster for their peers and colleagues. While employees tend to ignore negative events in their career, they always remember the time when their work was praised by the top management.

Around three decades ago, people would generally work for the same organisation for 30 to 40 years. Nowadays, young employees keep changing jobs frequently. A key reason for this quick turnover among the best of them is a feeling that their extraordinary efforts are being routinely ignored by the managers. If the managers make it a regular practice to give recognition to their young employees, where it is genuinely due, the latter will stay on with the organisation.

The impact of recognition may differ in various industries. For instance, it may reflect in increased output from an individual receiving praise in a manufacturing establishment. In healthcare, there may be a significant decrease in patient safety incidents. There, recognition is connected to a better and safer experience for both the employees and patients.

Recognition has an equally powerful effect on teams, which also yields positive results for the organisation. While the system of rewarding employees based on their performance evaluation or reviews is confined to individuals only, appreciating the achievement of team members has wider scope and is advantageous for both the employees in the team and the organisation.

In 1965, I joined a fertiliser plant set up by an American giant in Daharki, Sindh. The practice of recognising employees for good work has been common in American companies. Besides introducing a robust system of performance evaluation of management employees, it established a system of awards and certificates for long service, and sports/entertainment clubs for the management and non-management employees in their respective residential colonies.

Interest was generated among employees by establishing a safety regime and providing them with incentives. All company employees were given an attractive award on achieving the targeted man-hours without any lost-time accident. Aspiring to meet the target, the employees would not only follow the safety rules and guidelines themselves but also keep a watch on their colleagues for adherence to regulations.

The system of annual performa­nce appraisal of management emp­loyees was different and more ef­­fective than those followed in other organisations. Here, the managers would present their subordinate employees with performance evaluations in a group comprising the senior management. The final comments and rating would be determined by this group, after discussion and critique on each employee’s performance during the past year.

After the aforesaid exercise, the manager would discuss performance appraisal and the rating agreed upon by the group with his employees. An employee would be told about the areas where he required improvement and the objectives met by him. As the whole exercise was based on objective criteria, most employees would be content and feel encouraged that their efforts had been recognised by the senior management. The recognition of employees’ good work through various means would reflect on their high level of performance.

Recognition is a most effective tool which not only accelerates performance but also engages, retains and develops employees. Every organisation should adopt it.

The writer is a consultant in human resources at the Aga Khan University Hospital.

Published in Dawn, November 15th, 2022