Recognition and Identity: People Work for More Than Pay

In business, the focus is often on paying competitive salaries to attract and retain talent. Yet, while fair remuneration matters, it is rarely what keeps people committed. Employees want to feel recognised, valued, and seen as more than just a human resource. People seek meaning in their work and a sense of identity that connects to the company’s purpose. When businesses meet these needs, motivation and loyalty grow naturally – and so does engagement and performance. 

 According to research findings by Gallup, “when asked what types of recognition were the most memorable, respondents emphasized six methods in particular – and money is not the only (or the top) form of recognition: 

• public recognition or acknowledgment via an award, certificate, or commendation 

• private recognition from a boss, peer, or customer 

• receiving or obtaining a high level of achievement through evaluations or reviews 

• promotion or increase in scope of work or responsibility to show trust 

• monetary award such as a trip, prize or pay increase 

It is essential for leaders and managers to keep these employee recognition examples in mind when acknowledging their team members’ successes or accomplishments.” 

 Recognition builds connection and commitment 

Recognition goes far beyond saying “thank you.” It is about acknowledging effort, progress, and contribution in ways that feel genuine and specific. People who feel recognised believe their work matters. That belief strengthens their emotional connection to the organisation and inspires them to give their best. 

 

Frequent, meaningful recognition also builds trust – a vital currency in South African SMEs where teams are small, and relationships shape productivity. Leaders who recognise individuals authentically send a clear message: you belong here, and what you do has value. 

 

Case Study 1:

A small engineering firm in Kwa-Zulu Natal found itself struggling with declining morale. Instead of introducing bonuses, the managing director’s leadership coach suggested he start a peer-recognition board. Every week, employees highlighted a colleague who had gone the extra mile. Within months, absenteeism had dropped, and teamwork improved. The team’s sense of shared recognition created pride that incentives alone could not buy. 

 Identity strengthens engagement 

People do more than just work for a company – they want to align and feel part of it. When employees identify with a company’s mission and values, their sense of purpose deepens. They see their daily tasks as part of something meaningful, not just routine work. 

 For South African SMEs, this is especially powerful. Many employees value belonging to companies that reflect their community, culture, or social impact. When leaders connect company identity to shared purpose – such as supporting local suppliers or sustainable practices – engagement strengthens. 

 

Case Study 2:

A boutique chocolate shop noticed higher retention among employees who participated in the company’s local sourcing and community engagement initiatives. By working closely with local artisanal chocolatiers and hosting workshops for local schools, staff felt proud to represent the brand. The business did not just sell chocolate – connecting their daily work to the city and community they cared about became part of their identity and giving deeper meaning to their roles. 

 Recognition drives performance and innovation 

When people feel seen and valued, they are more likely to take initiative. Recognition acts as fuel for creativity and performance. Leaders who acknowledge innovation, problem-solving, and effort – not just the outcomes – encourage risk-taking and continuous improvement. 

This matters in SMEs where agility and ideas drive growth. Employees who trust that their contributions will be recognised are more willing to suggest innovative approaches, speak up about inefficiencies, and go the extra mile. 

 

Case Study 3:

A local start-up introduced monthly “innovation shout-outs” to acknowledge employees who proposed new ideas – even those not yet implemented. Within six months, the number of internal process improvements doubled. Employees said they felt safe to experiment because the company valued learning over perfection. 

 Click here to read our blog, “Acknowledgement, Recognition and Positive Feedback Are Not the Same.” 

Leadership visibility reinforces recognition 

Recognition carries the most weight when it comes from leaders who are visible and approachable. In SMEs, leaders often wear many hats and spend time in operations, which creates opportunities to recognise effort in real time. Simple actions – acknowledging someone’s problem-solving in a meeting or mentioning their contribution in front of the team – have a lasting impact. Leadership visibility also humanises management. When employees see leaders engaging authentically, they perceive fairness and respect. This transparency and visible engagement strengthen trust. 

 

Case Study 4:

The CEO of a logistics company started weekly walkabouts through the warehouse and offices, speaking directly with staff. Instead of formal appraisals, he recognised wins on the spot and asked for feedback on challenges. This open interaction broke down hierarchy and increased productivity by 15% that year. Employees said they felt “noticed” and “respected” by leadership. 

 Recognition and identity sustain retention 

Retention is one of the biggest challenges for South African SMEs. Skilled employees often move for slightly higher pay or more flexible conditions. However, research consistently shows that people stay longer when they feel appreciated and connected to a strong workplace identity. According to employee recognition platform, Achievers, “Recognition loses power the longer you wait. So does vagueness. 

“Nice work” does not tell employees much. Instead, call out the exact behaviour and explain why it mattered. Recognition that is specific and timely does more than boost morale; it helps people understand what to repeat and reinforces the values your business runs on.” 

Recognition cultivates emotional loyalty – the type that money cannot buy. When combined with an inclusive culture that reflects shared values, employees become advocates for the business, attracting others who fit the same ethos. 

 

Case Study 5:

A small financial firm faced high staff turnover. Through leadership coaching, managers gained an understanding of the power of personalised recognition – celebrating milestones, accomplishments, and professional growth. They created an internal brand campaign around “We Grow Together,” linking personal development to company success. Within a year, turnover dropped by 30%, and employee referrals increased. 

 Building recognition into the DNA of your SME 

Recognition and identity do not happen by accident – they are intentional leadership practices. Start by creating regular rituals for appreciation: weekly check-ins, monthly team shout-outs, or public acknowledgements during meetings. Make recognition specific: mention the action taken and its positive impact. Encourage peer-to-peer recognition so appreciation flows across all levels, not just from the top down. Equally, strengthen company identity by clearly articulating your purpose and values and acknowledging the living out of these values in the workplace. Align recognition with these values so that people feel part of something meaningful, not just busy. Communicate how each person’s work contributes to that bigger picture. 

Click here to read our blog, “How to Instil Core Values in the Workplace.”  

 

Final thought 

People work for more than pay – they work for belonging, purpose, and respect. In South African SMEs, where every team member plays a crucial role, recognition and a shared identity are powerful tools to build a cohesive team. When leaders invest in authentic recognition and build a culture where identity is shared, not imposed, they create workplaces where employees want to stay, grow, and give their best. 

Do you want to enhance your employee recognition and identity? Whether you wish to enhance your leadership skills, implement well-being programmes, or realign company culture, 4Seeds Consulting will provide you with personalised coaching support. We will help you set clear and actionable plans and support you through regular check-ins to ensure progress and help you maintain focus. 

Book a discovery call to find out more about our customised leadership and employee coaching packages.  

 

Over to you for sharing your comments and experiences.