How does employee recognition improve performance?

Employees are motivated by workplace recognition because it gives them a sense of success and helps them feel valued for their work.

Employee recognition improves performance because esteem needs are a powerful motivator to determine our personal worth or how we perceive ourselves. Recognition reinforces intrinsic motivation for an employee to strive for perfection and contribute their best at work.

It also increases individual employee involvement and commitment. Paying incentives vs. peer recognition, which is better?