By Mona Lisa Faris

We all remember scientists Ivan Pavlov and B.F. Skinner’s experiments famous for exploring the benefits of using rewards and positive associations to change both behavior and emotion. Lately, I’ve seen it to be true with companies as well.

Few corporate awards are as highly sought-after or revered as a prestigious Best of the Best title.

A company achieving recognition in this area values inclusion and has a hand on the heartbeat of diversity at all times. There are two ways to achieve this award, either by employee vote or by a third party strictly looking at numbers.

In my opinion, independent third-party HR auditing, such as filling out a survey, outweighs employee-based evaluations.

Nine reasons recognizing companies and employees is important:

1. Demonstrate You’re Doing Something Right

Business awards are important badges of honor to companies. The Best of the Best list is an opportunity to demonstrate to clients, employees, investors, customers, and the general public that yes, you’re doing something right, according to a third party and an objective panel of judges.

Whether or not your company has had direct involvement with these awards, the results are an invaluable source of information. It gives you an edge above your competitors, too.

2. Diversity Matters

A company that makes it on a Best of the Best list believes in diversity and understands the importance of salaries, benefits, leadership, personal growth, and wellbeing, ultimately revealing what employees really care about in the workplace. Organizational cultures built on inclusion drive engagement, which drives business and financial performance.

3. Employee Retention

Recognizing a job well done affects employee retention. When employee morale receives a boost, employee retention is increased. When a company is rewarded, it’s encouraged to strive to stay on the Best of the Best list and do even better. It is not a good sign when a company makes it on the list for a year and then doesn’t make it the following year.

4. Better Job Performance

Recognition keeps employees feeling proud and passionate about their work. When employees are recognized, they are encouraged to perform better, and consistent recognition—especially when they’ve gone beyond the call of duty—will enhance their job performance. According to Great Place to Work, “Employees who say they have a great place to work were four times more likely to say they’re willing to give extra to get the job done.”

5. Attract Great Talent

Award-winning status can help you compete for great talent. Customers, prospective employees, and the community hold top workplaces in high regard. If you’re recognized as a Top Veteran-Friendly Company, for example, it encourages veterans to apply with less hesitation knowing you’re diverse and inclusive to the veteran community. You present the following message: “Welcome, veterans, we’re here to train you and support you.”

6. Media Exposure

Recognition as a Best of the Best company will keep your diversity message and branding alive all year long. Companies on the Best of the Best list performed two to three times better than their counterparts. Being awarded is a great opportunity to brag and put out public notices of achievement, such as a press release. It’s a great recognition to put on a website or use the Best of the Best logo to brand and market across the nation. Some companies go as far as putting the logo on their advertisements, marketing material, and at events and job fairs.

7. Compete by Advantage

With better performance comes stronger revenue. When you’re on that list, it means you’re diverse, which means you’re getting diverse perspectives, ultimately putting out the best product and service because of the different views you have within your company. With a recognition, you also have a wider consumer base, which gives you an advantage over non-diverse competitors. At the end of the day, every company wants to be recognized, but companies are also interested in what other companies in their industry are being recognized for.

8. Increase Innovation

Diversity drives innovation. It’s helpful for managers to establish a culture in which all employees feel free to contribute ideas, implement feedback, and give credit where credit is due. Employees who are given an environment to speak freely, no matter what the feedback is, are more likely to contribute their culture, ethnicity, gender, and work experience to drive innovation. Companies that foster and implement diverse groups for feedback, such as an ERG, help define culturally sensitive products, services, and demographics, and these diverse groups bring the greatest innovation.

9. Increase Profits and Revenue

Recognition keeps employees satisfied, ultimately increasing revenue and profits. The bottom line is that we want our employees to be satisfied at work, because that is what influences company performance. Thus, diversity and inclusion are the keys to a company’s bottom line.

As a publisher of six-diversity focused magazines, I know it’s imperative to recognize companies for their achievements in diversity, and we do this through an independent survey. Any company award is a positive marketing strategy. Just as with any survey, do your research. My advice is to never participate in a “pay to play” investment because it’s not an investment. Our reports are never “pay to play.” By publishing these much-anticipated lists, my goal is to encourage those doing a good job to continue doing a great job, and for those who are not there yet, to entice them to join the bandwagon—to see what their competitors are doing and show the value. Companies that put diversity first, implement it in their policy, and practice it every day from the top down see the fruit of their labor and deserve praise.