Recognizing Your Employees to Boost Their Mental Well-being

Learn how our solutions empower meaningful recognition to boost employee morale, foster connections, and inspire innovation.

June 18, 2024
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Employee recognition is more than a token of appreciation; it's a cornerstone for fostering well-being and mental health within the workplace. By acknowledging the contributions of employees, companies not only bolster morale but also enhance overall mental health, creating a more productive and positive work environment.

Effects of Underappreciation on Employee Morale

When employees feel unrecognized, the repercussions can be significant, impacting individuals and organizations. A lack of acknowledgment for their efforts and achievements can lead to decreased motivation, lower job satisfaction, and increased turnover rates among staff. Organizations may experience heightened recruitment and training costs due to higher attrition rates. The broader organizational culture can suffer as well, becoming characterized by disengagement and a lack of loyalty. 

Here's how a lack of recognition manifests:

Decreased Morale

Without recognition, employees will feel undervalued, leading to a dip in morale. When employees do not receive acknowledgment for their hard work and contributions, they will start to believe that their efforts are insignificant. This decline in morale can be contagious, spreading feelings of dissatisfaction and disengagement throughout the team. As a result, the workplace culture suffers, with enthusiasm and positivity taking a hit.

Reduced Motivation

Recognition is a powerful motivator that drives employees to perform at their best. Its absence can result in diminished drive and effort, as employees may feel their hard work goes unnoticed and unappreciated. When employees do not receive positive reinforcement for their achievements, they will question the value of their contributions and lose the incentive to excel. This lack of motivation can lead to decreased productivity, lower quality of work, and a general sense of complacency within the team.

Increased Turnover

High turnover rates are often linked to a lack of recognition. Employees are more likely to seek employment elsewhere if they feel their efforts are not acknowledged, which can be costly for companies in terms of time and resources. Recruiting and training new employees require significant investment, and frequent turnover disrupts team dynamics and continuity. Losing experienced and skilled employees means losing valuable institutional knowledge, which impedes the company’s growth and competitiveness. Retaining employees through regular recognition and appreciation can mitigate these risks and promote long-term stability.

Negative Impact on Mental Health

Feeling unrecognized can lead to stress, anxiety, and depression, contributing to a decline in mental health. When employees consistently feel overlooked, it can erode their self-esteem and create feelings of inadequacy. This mental strain affects individual employees and the overall well-being of the team. Poor mental health can lead to increased absenteeism, reduced productivity, and a higher likelihood of burnout.

Poor Performance

When employees do not feel appreciated, their performance can suffer. Recognition helps reinforce desired behaviors and achievements, driving better results and higher-quality work. Without acknowledgment, employees might not feel incentivized to maintain high standards or put in extra effort. This can lead to a decline in the overall performance of the team, with missed deadlines, errors, and lower-quality output becoming more common.

Deterioration of Team Dynamics

A lack of recognition can create an environment of resentment and disengagement, deteriorating team cohesion and collaboration. When employees feel that their efforts are not valued, they may become less willing to cooperate with others or contribute to team goals. This can lead to a fragmented team where individuals are more focused on their tasks rather than working together effectively.

Loss of Innovation and Creativity

Recognition fosters a culture of innovation and creativity. Without it, employees may be less likely to propose new ideas or take creative risks, stifling progress and growth. When employees know that their innovative efforts will be recognized and rewarded, they are more inclined to think outside the box and contribute original ideas. Conversely, a lack of recognition can create a risk-averse environment where employees stick to the status quo and avoid suggesting improvements.

The Impact of Staff Recognition

Effective staff recognition has profound effects on mental health and well-being. When employees feel acknowledged and appreciated for their contributions, it leads to numerous positive outcomes both for the individual and the organization. From enhancing motivation to reducing stress, the benefits of staff recognition are far-reaching and pivotal in creating a thriving workplace.

Validation and Belonging

Recognition provides validation, making employees feel valued and fostering a sense of belonging. When employees receive acknowledgment for their efforts, it affirms their role within the organization, enhancing their connection to the company and their colleagues. This sense of belonging is crucial for building a cohesive and supportive work environment where individuals feel integrated and important.

Motivation and Engagement

Recognizing employees boosts motivation and engagement. Employees who feel appreciated are more likely to be engaged with their work. Engaged employees are more productive, dedicated, and willing to go the extra mile for the organization. This heightened motivation can lead to increased innovation, better performance, and a willingness to contribute to the company’s long-term success.

Stress Reduction

Acknowledging achievements can reduce stress by creating a more positive and supportive work environment. Employees who feel valued are less likely to experience burnout and stress. Recognition can act as a buffer against workplace stressors, providing emotional support and enhancing overall mental health. This supportive atmosphere can improve resilience and job satisfaction, leading to a more sustainable and healthy work culture.

Positive Reinforcement and Feedback

Recognition serves as positive reinforcement, guiding employees toward continued success. It highlights desirable behaviors and outcomes, encouraging employees to maintain high standards of performance. Recognition provides constructive feedback, helping employees understand their strengths and areas for improvement. This feedback loop is essential for personal and professional development, fostering a growth-oriented mindset.

Sense of Purpose and Fulfillment

Recognition helps employees see the impact of their work, instilling a sense of purpose and fulfillment. When employees understand how their contributions align with the company’s goals, they feel more connected to their work’s meaning. This connection to meaningful work enhances job satisfaction and overall happiness. Employees who find purpose in their roles are more likely to be motivated, committed, and loyal to the organization.

Cultivating a Supportive Culture

A culture of recognition cultivates support and camaraderie among employees. This supportive environment contributes to better teamwork, collaboration, and overall morale. When recognition is embedded in the company culture, it fosters an atmosphere of mutual respect and encouragement. Employees are more likely to support one another, share knowledge, and work collaboratively towards common goals, creating a positive and productive workplace dynamic.

The Growing Importance of Employee Recognition

As the nature of work continues to change, acknowledging the efforts and achievements of employees is necessary for maintaining a motivated and engaged workforce. The shift toward remote work, the need for high job satisfaction and retention, and the drive for enhanced morale and productivity all underscore the importance of recognition in modern organizational dynamics.

Remote Work and Distributed Teams

With remote work a common option, recognizing employees helps bridge the physical gap, ensuring remote team members feel connected and valued. The traditional office environment, where face-to-face interactions naturally facilitate recognition, has shifted dramatically. In a remote setting, employees can often feel isolated and disconnected from their colleagues and the organization. Regular and meaningful recognition can counteract these feelings, fostering a sense of belonging and inclusion. 

Job Satisfaction and Retention Rates

Companies that prioritize recognition see higher retention rates and lower turnover, saving resources on hiring and training. When employees feel appreciated, they are more likely to be satisfied with their jobs and stay with their employers longer. This reduces the costs associated with recruiting and training new employees and preserves institutional knowledge and expertise. A culture of recognition can enhance the overall employee experience, making the organization a more attractive place to work and reducing the likelihood of turnover.

Boosts Morale and Well-being, Driving Overall Productivity and Performance

Happy employees are more effective, creative, and willing to contribute to the company's success. When employees feel that their hard work is noticed and valued, their motivation levels rise, which directly impacts their performance. Positive recognition can reduce stress and improve mental health, creating a more positive work environment. As a result, employees are more likely to go above and beyond in their roles, driving innovation and efficiency within the organization. 

The Power of Employee Recognition

Employee recognition is a powerful tool that enhances individual satisfaction and performance, contributing to a healthier, more resilient workforce. Investing in recognition programs, such as employee appreciation week, staff appreciation, and providing appreciation gifts, is an essential part of modern performance management. It helps motivate employees, reducing employee burnout, and fostering a positive workplace culture where respect and happiness thrive. Recognizing employees answers questions like "How does recognition impact employee retention?" and solidifies a foundation for a supportive, innovative, and thriving organizational environment.

Find out how Assembly can empower you to enhance employee morale, foster deeper connections, and ignite inspiration. Schedule your demo today and take your workplace culture and team's mental well-being to the next level!

Browse our Free Employee Recognition Guide

Get the foundational knowledge on creating an employee recognition program that boosts employee engagement and helps them feel valued.

Explore Guide

Frequently Asked Questions

Is Assembly SOC 2 compliant?

Yes, at Assembly, security is a top priority. Each quarter, we have ongoing security work that is everyone’s responsibility. While we maintain a strong security posture, it was important for us to prove to our customers that we do everything we claim to do. This led us to pursue a SOC 2 Type II report that would provide evidence of our compliance with industry gold-standard security practice.

What's the ROI for employee recognition?

There is study after study showing that employee recognition leads to increased engagement. This in return creates an environment where employees are happier and more motivated which increase productivity and reduces voluntary turnover significantly. In order to filled critical roles, companies tend to spend nearly twice the value of an annual salary. Assembly is an investment in your employees that supports your bottom line.

Does Assembly offer longer-term contracts?

Yes, we will offer contracts for companies with longer-term agreements to help larger customers have more certainty around future costs.

The minimum agreement term is a 12-month subscription.

Does Assembly offer onboarding support?

We do and for FREE! Any new customer needing further support to get started with Assembly to ensure you're set up for success can request custom onboarding support. Improving your employee experience is about much more than just using our amazing software; it’s about transforming your business to create a workplace that people love. That’s much easier to do with the personal support and advice from our passionate people experts.

Is there a free version of Assembly?

Yes. We offer a completely free plan for up to 50 team members. This plan is intended for teams or organizations that are looking to get started with an employee engagement tool. Keep in mind, this plan is limited in features.

All customers can open an Assembly account for free and get started without a credit card. Then you can change plans as necessary.

How much do rewards cost?

At the time of redemption (when your employees exchange their points for a paid reward) you'll pay face value. If a reward is a $10 Amazon gift card, your cost will be $10. All paid rewards are billed for on a monthly basis.

The good news is that you don't have to pay for rewards upfront because we only charge you when points are redeemed, not when they're earned.

Does Assembly offer discounts?

We offer discounts or educational or charitable organizations. In order to secure a discount, you'll first need to book a demo with a customer support specialist.

For all other organizations, we are willing to consider longer-term agreements in exchange for discounts. To set up annual plans or longer, you will need to book a demo with a customer support specialist.

How do I cancel my plan if needed?

If you're on a month to month plan, you can go here and cancel anytime. If you're having concerns or need help setting up your account for success, you can always book a demo with a customer support specialist.

If you're on a longer-term custom plan, you'll need to reach out to your customer support specialist to cancel your account or email us at

What customizations are available?

Great question! You can customize your core values to match your organization's to boost and track alignment. You can change your currency from the 🏆 emoji (our default) to any emoji of your choice. You can swap our logo for your own. You can also set up company culture rewards such as, "Lunch with the CEO," "Buy a book on us," and so much more!

Who can give or receive recognition?

While we recommend a peer to peer set up where anyone in your organization can give or receive recognition, you can set up Assembly however you want. If you need to limit the people who can give or receive recognition, that's perfectly fine and can be done from your Admin, here.

What integrations are available?

Assembly connects to the tools your employees use every day to offer an easy, seamless experience with minimal change management.  

Assembly has integrations with HCM/HRIS systems like ADP, Google, Office 365, and Slack. We also integrate with communication tools like Slack and Teams so you and your employees can access Assembly wherever they work now.

What's your average adoption rate?

That depends on the company's permissions set up. That said, over 90% of the employees on Assembly's platform are recognized on a monthly basis. That means nearly every employee across all of our customers are receiving regular recognition from their peers, managers, or leadership. We're extremely proud of this.

Must rewards be set up to use Assembly?

They are not required. You can use Assembly without having rewards set up. However, we don't recommend it if you intend to have a high adoption and usage rate. You can always keep the costs down by offering internal culture rewards that are fulfilled by you internally.

Are points required to use Assembly?

No, you can remove allowances from anyone or everyone. It's up to you but we do recommend using points whether they're worth a real dollar value or not. Companies that use points have a much higher engagement rate even if those points don't exchange for real dollars.

Could find the answer you are looking for?

Please schedule time with an expert and we will help you to get all your questions answered