The relationship between employees and employers seems quite simple and very straightforward. Employers offer some rate of pay that employees accept in exchange for their efforts to do required work for the organization. Employees do the work. Employers pay them. All is good.
But, of course, all is not good, because employees don’t work only for pay, no matter how well paid they are. They want more. Wrapped up in that “more” is being appreciated for the work that they do. Employee appreciation—both tangible and intangible indications or signals that employees are valued for their contributions is a critical aspect of employee engagement.
When employees feel that they are appreciated, they’re more likely to put forth extra effort and to remain loyal to the company. It’s a win-win- that benefits employees, employers, and organizations’ customers and clients.
Noticing the commitment or engagement of your team is a big reason why employee appreciation matters in the workplace. But in addition to the “feel good” nature of the idea of engagement, there are real bottom-line business benefits that organizations can realize through the engagement that employee appreciation can help to drive.
Gallup has been studying the concept of employee engagement for more than a decade and they’ve been able to tie bottom-line benefits to organizations’ ability to engage their employees. They compared the top- and bottom-quartile business units and teams in terms of engagement and found the following differences between them. Top-quartile businesses performed better across a wide range of business impacts:
Does employee appreciation, or recognition, impact engagement? Absolutely! Writing for Human Resource Executive, Leslie Zemnick Folsgaard, a principal consultant at Kotter International Inc., says: “Though often considered a ‘nice-to-have,’ tangible recognition can go a long way in cultivating a strong culture and fueling motivation. The result will be happier employees, more connected teams and better business all around.”
When you factor in the unprecedented challenges of the modern workforce, the need for intentional appreciation and recognition becomes clear. The post-pandemic work environment, marked by the Great Resignation, an economic slowdown, heightened disengagement, record high stress, and increasing burnout, has proven to be challenging for organizations. Meaningful employee recognition is now a table stake for organizations as they navigate these unchartered waters and cultivate healthier work environments.
- Improved Company Culture
- Increased Productivity
- Improved Job Performance
- Reduced Turnover
- Improved Morale
