How praise and recognition supports the company bottom line and creates loyalty and visibility?

Profit must be made in profit-oriented organizations. Therefore, the bottom line must increase per time. The bottom line of an organization is the net income of that company. It is profit obtained after all expenses are deducted from revenues. Many factors can impact an organization’s bottom line, of which employee performance is critical. On the other hand, employee performance is also influenced by other factors like proper motivation, employee appreciation, and a healthy work environment. 


This presents a case of the ripple effect theory. A Ripple effect is simply the influence of a single event or action on other occasions. So, the bottom line is influenced by employee performance, and employee performance is influenced by proper motivation, among others. This means adequate employee motivation ultimately affects the company’s bottom line. 


When employees are recognized for their contributions, there is a sense of pride, and they are willing to work just as hard on the next project. Recognition helps employees build self-confidence in their abilities. Acknowledging achievement is a significant boost for employee morale and performance.


Types Of Employee Recognition:

There are different types of employee recognition. In addition, employee recognition varies depending on personality. This means that every employee would react to credit differently. 

  1. Recognition from manager/supervisor: This usually comes from a department or unit head to subordinates. This helps build up employee self-confidence. The employee doubles efforts and aims to surpass more benchmarks.   
  2. Recognition from peers/colleagues: This helps build goodwill among employees. When recognition happens among colleagues, it helps the employees to learn from one another. It also builds camaraderie in the workplace, making all employees go for teamwork which is eventually in the company’s interest.
  3. Recognition from subordinates: Junior colleagues recognize your input to the organization. This helps to build confidence and respect. Contrary to statistics that show that only a tiny percentage of those in positions at workplaces are recognized, this recognition on rare occasions helps leaders steer the team in the right direction.


Impact Of Employee Recognition on Company Bottomline and Visibility:

Employee recognition increases a sense of duty in that employee. Employees are loyal to where they feel appreciated. They become more engaged and motivated. This helps the organization because employees always have the organization’s best interest. This increases awareness as the employee will go ahead to advertise the company’s products to their social circle. The employees feel a mere sense of responsibility for the company. The turnover in the organization is also not left out. There is an increase in the bottom line as these employees’ dedication increases, and they work with so much zest.



Praise and recognition help employees do better. The employees strive for more and take the organization to the next level. Their dedication and commitment double hence increasing the profit of the organization. This gives the organization more visibility as regards its business niche. The employees develop a sense of loyalty to the organization and go the extra mile, increasing profit.