Employee recognition is crucial for several reasons: 1. Boosts Morale: Recognizing employees’ hard work can significantly enhance their morale and encourage them to maintain or improve their performance. 2. Increases Retention: Employees who feel valued are more likely to stay with the company, reducing the employee turnover rate. 3. Enhances Productivity: Recognition programs can drive productivity by motivating employees to give their best efforts. 4. Strengthens Company Culture: Regular recognition fosters a positive and inclusive company culture.