In today’s fast-changing world of work, company culture has become more than a buzzword — it’s a defining factor for success. While traditional organizations often focus on results at any cost, culture-first companies take a more holistic approach: they know that sustainable performance comes from people who feel connected, supported, and valued.
According to Deloitte’s Global Human Capital Trends report, 94% of executives and 88% of employees believe a distinct workplace culture is essential to business success. Yet, only 12% of companies believe they’re driving the right culture to support performance. That’s where recognition comes in — not as a perk or afterthought, but as a strategic expression of culture itself.
In culture-first companies, recognition isn’t simply about rewarding outcomes — it’s about reinforcing values, nurturing belonging, and celebrating progress in ways that strengthen the organization’s identity. Let’s explore how and why these companies recognize performance differently — and what you can learn from their approach.
The Culture-Performance Connection
For years, performance was measured primarily by numbers: sales closed, projects completed, hours worked. But the workplace has evolved, and so have employee expectations. People now seek meaning, growth, and connection — not just paychecks and praise.
A Gallup study found that employees who strongly connect with their company culture are 3.7 times more likely to be engaged and 5.2 times more likely to recommend their organization as a great place to work.
Culture-first companies understand that performance is a cultural outcome — when people feel trusted, recognized, and aligned with shared values, their output naturally improves. Recognition, in this context, becomes a daily tool for reinforcing what matters most.
How Traditional Companies Recognize Performance
Before diving into what makes culture-first recognition different, let’s look at how traditional organizations typically handle it:
- It’s transactional. Recognition often centers on results — like hitting sales targets or completing projects — with little acknowledgment of how those results were achieved.
- It’s infrequent. Employees might receive recognition during annual reviews or milestone events, leaving long gaps between moments of appreciation.
- It’s hierarchical. Recognition usually flows top-down, with managers being the only ones giving praise.
- It’s impersonal. Standardized messages or generic awards fail to connect emotionally.
This approach can motivate short-term performance but rarely builds long-term engagement. Employees start to view recognition as a checkbox, not a genuine expression of value.
How Culture-First Companies Recognize Differently
Culture-first organizations understand that recognition is a core cultural mechanism — it communicates what behaviors, values, and attitudes truly matter. Here’s how they do it differently:
1. They Recognize the “How,” Not Just the “What”
In culture-first companies, performance isn’t defined solely by output. The how — collaboration, integrity, creativity, and resilience — is equally celebrated.
For example, if an employee delivers an outstanding result but undermines teamwork or communication, that success wouldn’t necessarily earn recognition in a culture-first organization. Instead, leaders highlight examples of values in action.
💬 Example: “Your transparency during the client issue helped us solve it quickly and build trust — you really embodied our culture of open communication.”
This shifts recognition from performance metrics to behavioral alignment, creating a system where employees know how to succeed, not just what to achieve.
2. They Make Recognition Peer-Driven
Culture-first companies empower employees at all levels to recognize one another.
According to Workhuman, teams with peer-to-peer recognition experience a 41% increase in engagement and a 32% decrease in turnover. That’s because peers often see day-to-day contributions managers might miss — and recognition from colleagues feels authentic and personal.
With tools like Karma, employees can easily send shout-outs, award points, and celebrate wins across departments — all while aligning with company values. The result? A culture of appreciation that’s organic, not forced.
3. They Recognize Progress, Not Just Perfection
Culture-first organizations understand that innovation and growth come from taking risks and learning — not just from flawless execution.
They use recognition to celebrate effort, learning, and progress, which encourages employees to experiment without fear of failure.
💡 Example: “Your willingness to test a new approach — even though it didn’t work as planned — helped us uncover a better solution. That’s what innovation looks like here.”
This type of recognition fuels psychological safety, a key driver of performance and creativity. In fact, Google’s Project Aristotle identified psychological safety as the number one factor in high-performing teams.
4. They Tie Recognition to Purpose and Values
For culture-first companies, recognition is a storytelling tool. Each message reinforces the organization’s purpose and values, reminding employees why their work matters.
For example, a healthcare company might celebrate a nurse not just for completing shifts efficiently but for showing empathy to patients — a value core to their mission.
This values-based recognition helps employees see how their actions contribute to a bigger picture. As McKinsey reports, employees who feel connected to their company’s purpose are five times more engaged than those who don’t.
5. They Use Technology to Amplify Humanity
It might sound paradoxical, but the best recognition platforms — like Karma— make recognition more human, not less.
By providing spaces for employees to give real-time appreciation, comment on each other’s successes, and celebrate milestones collectively, technology becomes an enabler of emotional connection.
Unlike old-school “employee of the month” programs, Karma integrates recognition into daily workflows (e.g., Slack, MS Teams), ensuring appreciation happens in the moment, where it matters most.
6. They Recognize Teams, Not Just Individuals
Culture-first companies know that performance is rarely the result of one person’s effort. They make recognition inclusive, shining a light on collaboration and collective success.
For example, a project wrap-up might include a Karma post thanking everyone involved — from the lead strategist to the QA tester — for their unique contributions.
This builds a sense of unity and reinforces the idea that everyone’s work matters. In fact, research from OC Tanner shows that team recognition increases engagement by 28% and boosts collaboration across departments.
7. They Make Recognition Continuous, Not Conditional
Culture-first organizations view recognition as part of everyday communication, not something reserved for bonuses or annual awards.
According to Gallup, employees who receive meaningful recognition at least once a week are five times more likely to feel engaged.
Regular, spontaneous recognition fosters a rhythm of positivity and appreciation that permeates the workplace — and motivates consistent high performance.
Why This Approach Works
When recognition is consistent, authentic, and values-driven, it creates a feedback-rich environment where people feel both motivated and safe to grow.
Culture-first companies benefit from:
- Higher retention: Employees who feel appreciated are 23% less likely to leave.
- Better collaboration: Teams that recognize each other often report 30% more trust and openness.
- Increased performance: Recognition boosts individual productivity by up to 20%, according to Bersin by Deloitte.
But the real magic lies in how recognition shapes identity — it tells employees, “This is who we are and what we stand for.” Over time, those stories become the culture itself.
Building a Recognition Culture with Karma
If your organization wants to move toward a culture-first approach, start by making recognition easy, consistent, and meaningful.
The Karma recognition platform helps you:
- Encourage peer-to-peer recognition that builds community.
- Tie every message to core company values.
- Track recognition trends to see which behaviors and teams thrive.
- Create a positive feedback loop that fuels engagement and performance.
By embedding recognition into daily workflows, Karma helps teams live their culture — not just talk about it.
Final Thoughts
In culture-first companies, recognition isn’t about perks or policies — it’s about people. It’s a language that communicates belonging, appreciation, and purpose.
When employees feel recognized not just for what they achieve, but how they live the company’s values, performance stops being a goal and becomes a natural outcome of a thriving culture.
So, if you want higher performance, don’t start with metrics. Start with meaningful recognition — and watch your culture do the rest.