This article was originally published in the Wall Street Journal.
When it comes to enhancing the employee experience, companies often focus on benefits and other perks. Yet research shows that leaders tend to overlook an equally crucial factor to boosting employee engagement and well-being: recognition.Feeling appreciated at work—knowing your efforts are noticed and valued—is a key reason employees stay engaged and motivated, says Ryan Fehr, a management professor at the University of Washington’s Foster School of Business, who researches the role of gratitude in the workplace.“Appreciation is most effective when it comes from all directions—from your customers, your co-workers and your leadership,” Fehr says.An impactful act of gratitude can be as simple as publicly thanking an employee who took on extra work during a busy time, or letting someone who is experiencing personal hardships know you value their contributions.“The power of gratitude and appreciation at work isn’t just apparent when everything is going well,” Fehr says. “Sometimes it’s most important when things are difficult and when employees are going through a hard time.”
Despite the important role gratitude can play at work, research shows that employees often feel underappreciated. Research from WorkhumanOpens in a new tab, a workplace technology company pioneering employee recognition, found that fewer than half of employees polled earlier this year reported feeling even “somewhat valued” at work, and almost 11% described not feeling valued at all.Moreover, a recent Gallup and Workhuman studyOpens in a new tab found that most employees would like to be recognized at work at least a few times per month, but only 23% strongly agreed that they feel they receive enough recognition.The reason for this gap? Researchers have found that people tend to assume others already know they’re appreciated, and underestimate the impact of expressing gratitude, Fehr says. “When you show gratitude, it tends to boost the other person’s mood more than you anticipated,” he says. “There’s a general assumption that other people know we appreciate them and understand the ways we appreciate them—but that’s just not the case.”This gap should concern business leaders, because gratitude is essential to creating a thriving culture where employees feel valued and empowered, says Thomas Libretto, president of Workhuman.
Companies with a thriving culture see better performance metrics. Gratitude is right at the center of that. Thomas Libretto, President, Workhuman
“There’s a ton of research showing companies with a thriving culture see better performance metrics—employees are more engaged with the brand, are willing to go above and beyond, are more productive and exhibit higher levels of retention,” he says. “Gratitude is right at the center of that.”Organizations that recognize employees regularly can boost productivity threefold, the Gallup and Workhuman study found, while dramatically reducing turnover. A company with 10,000 employees can save about $16 million annually in involuntary attrition, thanks to robust recognition efforts. High levels of appreciation are also linked to measures of employee well-being, including lower absenteeism and fewer workplace safety incidents.
The most effective way to encourage and spread gratitude in the workplace is with a formal program that makes recognizing employees easy, frequent and expected, Libretto says.That’s why Workhuman created its Social RecognitionOpens in a new tab platform, which allows employees to create a moment of appreciation for another colleague that can be easily and quickly shared with others—whether it’s to celebrate a life event like the birth of a child or simply give thanks for a job well done. Multiple employees can contribute to a recognition moment, adding their own notes of gratitude and even photos.“We’ve invested heavily in embedding recognition into the communication tools that employees use every day so that, as an employee, you’re able to recognize somebody in the moment, friction-free,” Libretto says.Recognition moments can also include award points recipients can use at the Workhuman Store, where they can be redeemed for products and experiences or donated to the charity of their choice.Zimmer BiometOpens in a new tab, a global medical technology leader, has over 18,000 team members with operations in more than 25 countries. Its social recognition platform IGNITE launched in 2021, and since then there have been more than 420,000 meaningful moments shared among Zimmer Biomet team members.“Prioritizing gratitude in the workplace is an essential component of a people-first culture,” says Andrea LaBarbera, vice president of talent and engagement at Zimmer Biomet. “If we are going to say our team members are our greatest asset, they need to feel like they are the greatest asset. If they feel valued, they will give their very best in return—and productivity and profitability will follow.”Zimmer Biomet has also leaned into the analytics of IGNITE. Within the first year of launch, the organization demonstrated increased recognition reach from 43% to over 70%. “We’ve also doubled the percentage of people who are giving recognition, and the frequency of recognition, while maintaining our recognition spend levels—an incredible accomplishment in a short amount of time,” LaBarbera says.The payoff has been significant. Since launching the program, Zimmer Biomet has seen a mitigating effect on employee churn, with voluntary turnover for recognized team members shown to be half of those who have not received recognition.Ultimately, Libretto says, business leaders are increasingly understanding the value of gratitude—and why it should be a key part of culture and experience. “Gratitude needs to be seen like any other strategic investment a company makes,” he says. “Every company aspires to have a thriving work culture, but that doesn’t happen by just posting it on a slideshow. Recognition needs to be prioritized.”
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