Most managers understand the importance of showing appreciation to their team members. They may commend hard work with a written or verbal thank-you. Or, they may recognize employees’ efforts with a cash bonus or extra time off. In the current job market, when many employees are looking for new opportunities, employee recognition is especially important.

Writer Anouare Abdou asserts that companies that do not properly recognize their employees could end up losing them. This can significantly set back your entire team, from the knowledge lost to the time it takes to find a new employee and get that new hire up to speed.

You can help keep your employees engaged and happily working for you by checking in with them regularly. You can also look for ways to recognize their contributions. Employees who feel appreciated for their work are more likely to stay. In this issue of Promotional Consultant Today, we highlight Abdou’s reasons for prioritizing employee recognition.

Recognition impacts productivity. As a manager, it’s critical to acknowledge your team members’ hard work. If your employees feel like their work doesn’t matter, they will eventually stop putting forth the effort. Their productivity will wane, and your team won’t be as successful as it could be. Even the most highly motivated people will lose their drive to go above and beyond if their work is not recognized, says Abdou. Commit to regularly acknowledging your team members’ efforts. You may benefit from increased retention and efficiency.

Strong recognition programs impact earning potential. Companies with solid performance incentives typically pay their employees the highest salaries, notes Abdou. If you want to stay competitive in the job market and retain your top talent, consider enhancing your performance incentives. She points out research that reveals that 83 percent of employees who work at companies with excellent performance incentive plans say they are satisfied with their compensation.

A lack of recognition can damage work relationships. When you don’t acknowledge your employees’ contributions, the whole team can suffer. Abdou points out research that shows that a failure to incentivize performance can lead to poorer relationships between colleagues.

Recognition can lead to a culture of performance. For employees to thrive, they need the right culture. You can help build a culture that recognizes contributions. You don’t need to roll out a major initiative or invest a huge portion of your budget in employee recognition, adds Abdou. They key is to be consistent with your efforts. Commit to taking time to recognize your team members, whether you give a small gift card, bring in lunch to celebrate a success or simply say thank you. Remember that different things motivate different people, says Abdou, so mix and match your incentives to give people what means the most to them.

Employee recognition doesn’t just lead to happier, more engaged workers—it can also lead to increased productivity and enhanced creativity. People are often inspired to work harder and do their best when they feel appreciated. If you want to show your team members your gratitude, look for ways to consistently say thanks. It’s a win-win for them and your organization.

Compiled by Audrey Sellers

Source: Anouare Abdou is a career expert, writer and entrepreneur. Her work has been featured in Ladders News, Business Insider, Thrive Global and others.