Impact of Lack of Recognition on Employee Satisfaction

Impact of Lack of Recognition on Employee Satisfaction

Felix Yim 03/10/2023
Impact of Lack of Recognition on Employee Satisfaction

Recognition is a fundamental human need and essential for sustainable and healthy working environments.

Unfortunately, many organizations struggle with effective employee recognition, leading to employee disengagement, decreased job satisfaction, low morale, and high turnover. 

In this article, we will explore why poor employee recognition can reduce employee satisfaction and provide insights on how to build a culture of recognition.

The Importance of Recognition in the Workplace

Recognition is the act of acknowledging a person's efforts, contributions, or accomplishments. Recognizing employees is not just a form of praise but a powerful tool that engenders good feelings and enhances motivation. Employee recognition can take multiple forms, including praise, bonuses, promotions, and awards. However, for recognition to be effective, it must be timely, specific, and meaningful.

Effects of Low Employee Appreciation In an Organization


Like any other part of running a business, appreciating your employees is an effective tool for boosting productivity in the workplace. Lack of it can have detrimental effects on your business’s overall output. Here are some of the negative effects worth knowing:

Poor Recognition Leads to Disengagement

The failure to recognize employee contributions reduces employee engagement. Disengaged employees are less committed to work, less productive, and more likely to leave an organization. In contrast, engaged employees are more productive, committed to the organization, and more likely to stay.

According to a survey by TINYpulse, "lack of recognition" is the third most significant reason employees leave their job. In addition, low levels of employee recognition can have detrimental effects on employees' mental health and well-being. For example, poor recognition can lead to feelings of hurt, disappointment, and low self-esteem, which can fuel disengagement and lead to depression and anxiety.

Lack of Recognition Leads to Low Morale

When employees do not feel recognized or valued, it can lead to low morale. Morale is employees' mental condition, attitude, and emotional state regarding their work and the organization where they work. Low morale can manifest in different ways, including increased absenteeism, negative behaviors, and decreased productivity.

According to the Society for Human Resource Management (SHRM), low morale is one of the most significant factors leading to job turnover. Poor recognition can lead to negative behaviors and create toxic work environments, leading to low morale and decreased job satisfaction.

Building a Culture of Recognition is Crucial

5 Tips to Maintain A Successful Workplace Culture for Hybrid Teams

Employee recognition does not have to be complex or expensive. Research suggests that simple gestures such as saying "thank you" for a job well done can go a long way in improving engagement. Building a culture of recognition requires a systematic approach that emphasizes the value of employee contributions.

Building a culture of recognition should start with a clear and consistent communication strategy. Leaders should recognize employee contributions publicly, such as through company-wide announcements or newsletters. Timely recognition is key to ensuring the significance of employee contributions is acknowledged.

Organizations can use multiple methods, such as feedback surveys, to create a culture of recognition. Feedback surveys can help identify areas where employees feel undervalued and underappreciated. Organizations can use feedback to develop and implement recognition programs tailored to specific teams or departments.


Poor employee recognition can damage employee satisfaction in multiple ways. It leads to disengagement and low morale. Employee recognition is not just a feel-good or gratuitous exercise but a strategic imperative for organizations. By building a culture of recognition, organizations can create a more engaged, motivated, and productive workforce. 

Building a culture of recognition requires a systematic approach, including clear communication, timely recognition, and feedback surveys. Leaders must understand that employee recognition is crucial to fostering engagement, improving morale, and enhancing employee well-being.

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Felix Yim

Tech Expert

Felix is the founder of Society of Speed, an automotive journal covering the unique lifestyle of supercar owners. Alongside automotive journalism, Felix recently graduated from university with a finance degree and enjoys helping students and other young founders grow their projects. 

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