Remember back in elementary school, when it was a big deal to get a good grade on a paper along with a smiley-face sticker from your teacher? People don’t outgrow their desire to receive praise, especially from their boss. Just like that smiley face sticker from your teacher, a simple “thank you” at work can have a lasting impact on employee morale and retention.Are you giving your employees that smiley-face kind of joy? Do you know how your thank-yous affect your ability to retain your valued staff?
The business impact of employee appreciation: why it matters more than you think
Acknowledging the hard work of your team members can boost morale, increase engagement and instill loyalty. In a recent Robert Half survey, 74% of employees say that receiving recognition for their contributions influences their decision to stay with their company.Recognition can also have an impact on employees’ well-being. When people feel supported, connected to their colleagues, and confident that their contributions are valued and make a difference, they are likely to have higher job satisfaction and a more positive outlook about their work, generally. And if all or some of your employees are working remotely, your recognition efforts can be even more important for creating a cohesive and high-performing team.Here are some ways to show your team members how much you appreciate them, regardless of where they work and how much budget you have to work with. We’ll also look at some common employee recognition missteps to avoid.
Show them that you mean it
Put your praise in writing. Verbal praise is essential, but documenting great work in writing is even better. A thank-you note—especially one that the company’s leaders add their congratulations to—can serve as a motivating message that an employee can keep and look back on. While 29% of employees find written appreciation motivating, pairing it with verbal acknowledgment can amplify its impact.Sing their praises widely. Announcing key achievements during a regular meeting is always a good thing to do. But if the accomplishment is significant enough, consider scheduling a special event, virtually or in person, to celebrate the success as a team. In our survey, 33% of employees answered that public recognition motivates them, making it a powerful tool for fostering a culture of appreciation.Broaden the recognition. Consider calling out everyone who played a role in a big win. This reinforces the benefits of collaboration.Consider monetary rewards. As you recognize the professionals who work for you, explore the possibility of providing spot bonuses, raises, and other financial rewards if appropriate and budgets allow.Offer non-monetary recognition. While monetary rewards are impactful, non-monetary gestures can be equally motivating. Among employees, 45% are most inspired by small tokens of appreciation, such as gift cards or company swag, while 44% value extra time off or flexible hours.Find out how benefits and perks can be just as important as salary when it comes to retaining top talent.
Employee appreciation mistakes to avoid
Don’t underwhelm them. The form of recognition should fit the degree of achievement. For example, giving a strong performer a $5 gift card for coffee to mark their fifth anniversary doesn’t quite convey that you view the milestone as significant. Don’t let smaller budgets lead you to skip appreciation. Recognition doesn’t always need to be extravagant to be effective. Saying “thank you” or giving credit for good ideas can be a powerful motivator, provided your actions are timely.Don’t be vague. Telling an employee “You rock!” or “Nice job!” during the course of everyday work can be meaningful, but including more detail with your praise is better, especially when an employee delivers a standout performance. Properly give thanks by tying acknowledgments back to specific actions, so the employee knows exactly what they did well and how it made an impact.Don’t let one star outshine the rest. Although some workers naturally gravitate toward the limelight, don’t forget to celebrate the unsung heroes who make significant contributions behind the scenes.Want to attract and retain top talent? Discover what employees truly value in the workplace in this article on understanding employee preferences in 2025.Skilled talent is in demand in any job market. So, be sure to make employee recognition an ongoing priority if you want to hold on to your top performers. One way to make sure you do that on an ongoing basis is to create an employee recognition program. This can help you foster a culture of recognition in your organization that creates a sense of fairness, drives innovation and motivates your employees to excel.
