How Great Managers Use Recognition to Bring Out the Best in Their Teams

Behind every high-performing team, there’s almost always a great manager — one who knows how to balance accountability with appreciation. While setting clear goals and expectations matters, it’s often recognition that unlocks a team’s full potential.

According to Gallup, employees who receive regular recognition are 5 times more likely to be engaged, and teams with high engagement show 21% greater profitability. Yet, only one in three employees say they received recognition for doing good work in the past week.

That’s a huge missed opportunity — and one that great managers never let slip.

Recognition isn’t just a feel-good gesture; it’s a powerful leadership tool. Used well, it boosts motivation, strengthens relationships, and helps individuals see how their contributions make a difference. Let’s explore how exceptional managers use recognition strategically to bring out the best in their teams.

The Science Behind Recognition and Motivation

Before diving into best practices, it’s important to understand why recognition works.

At a psychological level, recognition activates the reward centers of the brain, releasing dopamine — a neurotransmitter linked to motivation and happiness. This creates a positive feedback loop: when employees feel appreciated, they’re more likely to repeat the behaviors that earned them that recognition.

Studies consistently back this up:

• OC Tanner found that when leaders give frequent, meaningful recognition, employees are 44% more likely to feel thriving and motivated.
• Workhuman and Gallup reported that effective recognition programs can reduce burnout by 73% and lower turnover by 31%.
• Teams with a culture of appreciation show 50% higher productivity than those without one (Deloitte).

In short, when managers recognize effort and results regularly, they don’t just boost morale — they elevate performance.

Why Recognition from Managers Matters Most

While peer-to-peer recognition is powerful, recognition from a direct manager carries special weight. A manager’s words validate effort, affirm value, and strengthen trust.

In fact, Gallup found that when recognition comes from a manager, employees are 40% more likely to feel they belong in the organization. Managers are the bridge between company goals and employee effort — and recognition is the glue that holds it all together.

Here’s how great managers turn that insight into action.

1. They Recognize Both Results and Effort

Great managers know that not all wins are measurable — some are about resilience, teamwork, or creative problem-solving.

While celebrating outcomes like hitting sales targets or delivering a successful project is important, recognizing effort keeps motivation alive even when results take time.

For instance:

“I really appreciate how much time you invested in testing that feature. Even though it wasn’t part of the final release, your attention to detail made the whole product stronger.”

This type of recognition reinforces perseverance and growth, showing employees that their dedication matters — not just the final metric.

💡 Pro tip: Recognition focused on progress (not perfection) builds confidence and resilience, especially in high-stakes environments.

2. They Make Recognition Personal and Specific

Generic praise like “Good job!” might feel polite, but it rarely inspires. Great managers make recognition specific, personal, and timely.

They pinpoint exactly what was done well and why it mattered. For example:

“Your presentation to the client yesterday was excellent — the way you explained the data so clearly helped us close the deal faster.”

This specificity strengthens the connection between action and appreciation, helping employees understand the impact of their work.

According to SHRM, 68% of employees say recognition feels more meaningful when it’s personalized and directly linked to their contributions.

3. They Celebrate Team Wins, Not Just Individual Stars

A strong manager doesn’t let recognition create competition — they use it to unify the team.

When achievements are the result of collaboration, recognition should reflect that collective effort:

“The way everyone pulled together to meet the deadline this week was incredible. Each of you played a key part in making it happen.”

Celebrating team success reinforces a culture of collaboration rather than rivalry. It also helps quieter team members — who may not always self-promote — feel seen and valued.

💡 Using a recognition tool like Karma makes this easy — managers can give shoutouts to entire teams or tag multiple contributors in one message.

4. They Recognize in Real Time

Timing is everything. Recognition that happens weeks after the achievement loses its emotional impact. Great managers make recognition immediate, acknowledging success as close to the moment as possible.

This doesn’t have to mean formal awards — a quick public message, a Slack kudos, or a few words in a team meeting can do wonders.

In fact, employees who receive instant recognition are five times more likely to stay motivated on future projects (Gallup). Real-time feedback reinforces desired behaviors right when they happen, turning success into a repeatable habit.

5. They Encourage Peer Recognition

While managerial recognition is powerful, the best teams don’t rely solely on it. Great managers encourage a culture of peer-to-peer appreciation, where teammates celebrate one another’s contributions.

This democratizes recognition and builds stronger interpersonal bonds. When everyone is empowered to recognize great work, appreciation becomes part of the team’s DNA — not just a top-down process.

💡 Platforms like Karma make this effortless by integrating recognition directly into team communication tools, letting everyone celebrate wins in real-time.

6. They Link Recognition to Company Values

Recognition is most effective when it reinforces the company’s mission and values. For example, instead of saying, “Thanks for finishing the report,” a great manager might say:

“Thank you for collaborating across departments on that report — you really embodied our ‘One Team’ value.”

This approach creates alignment between everyday actions and the organization’s bigger picture. It helps employees understand how their work contributes to something meaningful — and that’s a powerful motivator.

A Deloitte study found that organizations where recognition is tied to values are 12 times more likely to have strong engagement and culture.

7. They Make Recognition Public — But Thoughtful

Public recognition amplifies impact, especially when done thoughtfully. Whether it’s during a team meeting, in a shared Slack channel, or a company-wide email, public praise motivates both the individual and others who see it.

However, great managers also recognize that not everyone loves the spotlight. For introverted employees, a private message or one-on-one acknowledgment might feel more genuine and comfortable.

In other words, they tailor recognition to each person’s personality — because effective recognition is about the recipient, not the giver.

8. They Combine Recognition with Growth

The best recognition doesn’t just celebrate performance — it encourages growth. Great managers use recognition as a bridge to development conversations.

For instance:

“You handled that client negotiation brilliantly — I think you’d be great at leading the next one. How would you feel about taking it on?”

By linking recognition to opportunity, managers reinforce progress and signal trust. This transforms recognition from a momentary boost into a long-term motivator.

9. They Track and Use Recognition Data

Recognition isn’t just emotional — it’s measurable. Great managers track recognition trends to understand team dynamics.

Who’s being recognized most frequently? Who’s doing great work but going unnoticed? What behaviors are being celebrated most often?

Using tools like Karma, managers can see data-driven insights on recognition activity. This helps identify high performers, engagement gaps, and areas where more acknowledgment might boost morale.

10. They Lead by Example

Finally, great managers don’t just talk about appreciation — they model it. When team members see their manager giving recognition openly, it signals that appreciation is part of the culture.

As a result, recognition becomes contagious. Teams start recognizing each other more often, and gratitude becomes a shared value.

As leadership expert Simon Sinek puts it:

“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.”

Recognition is how managers create that emotional investment.

The Takeaway

Great managers know that recognition isn’t just a “soft skill” — it’s a strategic leadership tool. When used consistently and authentically, it drives engagement, loyalty, and performance across the board.

By recognizing both effort and achievement, being specific and timely, and tying appreciation to company values, managers can turn recognition into a competitive advantage.

The truth is, people don’t leave companies — they leave managers. But when managers lead with recognition, they don’t just retain talent; they inspire excellence.

And with tools like Karma, making recognition part of your team’s daily rhythm is easier than ever — empowering great managers to bring out the best in every individual, every day.