What is Employee Recognition Software and Why is it Important?

It may seem like a simple enough task, but, in reality, finding the proper employee recognition software for your particular organization or business is a bit tricky. First of all, there are a plethora of options that you have to take into consideration and this can lead to confusion. It is absolutely mandatory that you choose one that fits the requirements of your organization. It has to be able to work for your goals, your company overall, and also for your employees. 

This is why this article is here to help you. It has been categorically proven that using the proper employee recognition software can really help your business overall. It will enhance your growth and make sure that you are making the most out of your workforce. 

We will take a closer look at the features that need to be present in the software, how to choose one that will complement your business and the benefits that you will derive from using these tools. Once you have a broader understanding of how these tools work, you can make the right decision in getting what you need. 

Read on to know more.

Employee Recognition Software: What are they?

To put it simply, these are software tools that have been designed to recognize and to also reward workers in a very regimented and structured way. The apps themselves are designed in such a way that they can both send and receive messages regarding appreciation. The same can be done for rewards that are financial in nature. Usually, these are sent automatically after an employee is able to accomplish a desired outcome or goal. Or it can be for just general good performance as well. 

Let us now take a look at the features that ought to be present in these recognition softwares.

Note that choosing the right one can really impact your ROI very positively. 

What to look for in employee recognition softwares?

The first thing that you ought to realize is that every recognition software will vary from one another. Every software will not have the same features and capabilities. So, when you are going through the process of getting employee recognition software, it is important to really focus on the things that you actually need. Do not get lost in the details too much. Ideally, you will want something that will be able to increase employee productivity and will hence, justify the investment you will be making on the software. 

In the following few paragraphs, we will take a look at the features to pay attention to when getting these softwares. 


No one likes to spend hours upon hours figuring out software. To put it simply, if the software is too complicated to use, it will not be used at all. When getting an employee recognition software, make sure that it is not too complicated and will be used by all employees. 

The solution for this has to be intuitive and it must be easy to use and access. It also needs to be mobile-friendly.

It is important to note that millennials are the dominant group in today’s workplaces. This is a demographic of people who have technology highly invested in their lives. This is why it is so important that your employee recognition software is glitch-free, easy to use and accessible. Otherwise, millennials will simply reject the software completely and that will obviously have an impact on the company’s bottom line. 


Being able to configure your employee recognition software according to your individual needs is vitally important. Whatever software you decide to use, it has to be able to fit with the structure of your organization and how it operates. Also, no one will be able to know your employees and their capabilities better than you. Therefore, you need to have a software that has the option of configurability and can keep up with the culture of your workplace. 


This is another very important consideration that has to be taken into account. Your employee recognition software will very obviously have sensitive information about your employees and your organization. The last thing you would want is to have that information fall into the wrong hands. This is why security is such an important feature when it comes to deciding on buying a software of this kind. 


Another thing that has to be mentioned is that your employee recognition software needs to be flexible as well. It completely depends on the type of business you are running but it is safe to say that you would want a software that is flexible enough to meet your needs. You will also most likely have to develop more than one type of recognition program. Also, look into whether the software that you are getting is able to support peer-to-peer recognition or not. It needs to be able to provide recognition in both monetary and also non-monetary terms. 


Different employees of your company will have different favorite work related apps that they use. In order to make the most out of your employee recognition software you need to make sure that it is able to integrate properly with those particular apps. 

These types of software need to be able to integrate properly with either MS Teams or other types of communication apps such as Slack. Also, LinkedIn integration is vitally important as this enables them to share the recognition they receive on a public platform. 

Social Form of Recognition

When employees know that there is a kind of social wall where recognition is displayed for all to see, they will be a lot more aware of their actions and be more mindful in how they conduct themselves in the workplace. This completely relates directly to the company culture. It is also very important for you if you have remote workers in particular. 


Oftentimes, you will be providing recognition in purely monetary terms. This is why it is so important that the employee recognition software you get has this particular feature. Otherwise, it will be really difficult for you to navigate the monetary recognition programs. 

As mentioned previously, millennials make up the majority of the workforce these days. This is a group of people who are really in favor of prepaid cards as their main type of monetary recognition. 

Proper Strategic Support

This is not exactly an exact feature that you will be able to pinpoint. However, it is still worth understanding how the software you have chosen is evolving from its initial release to its current updates and all. You ought to be able to know how it is growing in order to keep up with the recent trends of the industry. So, what you are trying to get out of this is ideally support that lets you know the way to best utilize your software according to current needs. 

Another thing worth mentioning about support is that it will help you to be able to tie up the recognition programs and the goals you have on both a long and short term basis. This is absolutely one of the most fundamental prerequisites of running any type of successful business employee recognition program. 

The first thing that has to be mentioned here is that employee recognition is something that ought to be approached on a long term basis. In order to make sure your employees feel valued, there should be organized effort which will be properly employed and maintained. So, with that in mind, you can see quite easily how it will be helpful to use an employee recognition software that will be able to keep up with your needs and wants as your company grows. 

Let’s take a closer look at why getting the proper kind of recognition software is so crucial

Employee engagement is improved

This is an extremely popular metric in Human Resources. This metric is able to indicate just how engaged a particular employee is with his/her work. This is also a key metric in determining the overall level of employee satisfaction, the productivity of your employees, and also retention. This is why it is so important to keep it optimal throughout the entire journey of the employee’s time at your company.

There have been some studies conducted on this. They all point to the fact that employees are much better engaged in their work when they are properly recognized periodically. A proper and smart business leader will make sure that their employees receive letters of appreciation or maybe just inspiring and quote-worthy employee appreciation small gestures. 

However, it has to be noted that all of the above will not be possible without a proper employee recognition program in place. If you have an employee recognition program in place that hardly gets used by employees of the organization, then it is of no actual use and importance. Also, if the software itself is hard to use and is not that user friendly, recognition tends to normally take place in person. This is not at all advisable as the entire organization will not be aware of it or it may not happen at all either. 

Employee Recognition: Why does it matter?

If this is something that is not prioritized by your business, you are doing yourself a lot of disservice and you are actually affecting the overall bottom line of your business. It has been proven that organizations that do practice proper employee recognition programs are much more likely to better their NPS scores, stock prices, and also, the overall performance of their employees. 

Let’s take a deeper look at why you should be implementing employee recognition programs and how it can help both you and your employees become better and more productive workers. 


There is probably no other aspect of the employee experience that is more powerful than engagement and as it should be obvious by now, proper recognition is one of the easiest ways to achieve a properly engaged workforce. If you were to double the total number of employee recognition in your organization, you will see an almost 5 point increase in the engagement levels of your employees. It is very crucial that you understand that organizations that have a well-rated workplace culture that employs recognition programs properly, are almost twice as likely to experience much more improved engagement. 

Also you should know that when you provide recognition on a frequent basis, the impact will be that much greater.


This should be a very obvious benefit but when employees are aware of their value to an organization or business, it will be reflected in their work performance. Employee recognition is the way to make sure that your employees feel valued and appreciated within the organization. Most employees say that recognition provides them with proper motivation to give the right amount of effort. This is why it is not at all surprising to hear that organizations that practice these recognition programs are able to see much higher productivity and better performance. 

The productivity of these employees are boosted a lot more when they are given recognition for a particular desired action that will be of great benefit to an organization’s success. There is a saying that goes something like whatever gets recognized, will get repeated. Ask anyone working at any organization- almost all of them will say that they are more than likely to repeat actions for which they received recognition. 


Retention is another big advantage of proper employee recognition programs. Employees who feel properly valued and appreciated by their employer will be that much more likely to stick with the company they are working for. They will do so in both good and bad times. 

A very large number of employees often say that recognition is probably the most useful factor when it comes to them deciding to work for a company. A culture that emphasizes employee recognition is one where employees will want to work in. Recognition is also the number one non-monetary factor that can really help an employee stay motivated, focused and productive. Not to mention the fact that organizations that practice good employee recognition programs, are much more likely to see lower employee turnover. 


When the people who work for your company or organization are happy with their jobs and are satisfied with it, this will be reflected very positively in their everyday work. This is not at all surprising but employees who receive the right kind of recognition are more motivated and, in fact, are more likely to be happy with their overall lives as well. 

When you have happy and well appreciated employees, this will mean you will also have happy customers.


There are tons of examples which show that making sure that proper recognition practices are being put in place will result in the development of the culture you want to see at your workplace. 

Final Words

Proper recognition programs are easily one of the best ways to make sure that your employees are aware of the cultural expectations you have from them. Another thing that we also want to emphasize is that peer-to-peer recognition is one of the key aspects of proper recognition as well. 

Having read all of the above, it should be plainly obvious to you just how important employee recognition is when it comes to running a successful business. Your employees are the most important assets that you have at your disposal and making sure that they are happy and engaged is a duty that falls firmly on your shoulders. 

Therefore, make sure that when you choose an employee recognition software, you choose one that aligns with your company’s goals, vision and culture as well. Not only will it result in happier employees, it will result in a better bottom line as well for the business.