This article originally appeared in the Wall Street JournalOpens in a new tab.
Gestures of appreciation and recognition in the workplace don’t just make employees feel good in the moment. ResearchOpens in a new tab shows that when companies encourage their workers to regularly express gratitude and take time to recognize peers who have gone the extra mile, it has ripple effects throughout the organization—positively impacting a variety of business metrics.From lower turnover to greater productivity and innovation, organizations with high levels of employee engagement and recognition have been shown to reap many rewards, according to Eric Mosley, founder and CEO of Workhuman, the pioneer of employee recognition technology. “We have seen the ROI from recognition time and time again, and we’ve now hit a critical mass of research,” he said at the company’s Workhuman LiveOpens in a new tab conference earlier this year.So just how much can gratitude power higher employee engagement and better morale? We spoke with leaders at two different companies about their firsthand experiences giving and receiving gratitude at work—and how even the smallest gestures have had a lasting impact on their feelings about their role, team and culture.
Last summer, Amanda Gerding was asked by one of her colleagues if she could provide a quick tutorial on how to create a new contest for employees—a topic she knew plenty about as manager of employee engagement at Hyland, an Ohio-based provider of intelligent content solutions. They discussed over the phone for about 30 minutes, with Gerding sharing tips and knowledge about the compliance and approval process.A day later, she received a message from that peer on the company’s social recognition platform, Hylight. He had publicly thanked her for taking the time to share her insights, which allowed him to submit the necessary forms quickly and correctly.“His message was so heartfelt and genuine, and left such a big impact on me,” Gerding says. “We’re so used to working with people in our own department that it’s really special when you get recognized unexpectedly by someone outside of your own group.”Because the message could be viewed by any of the nearly 4,000 employees at the company, it felt all the more noteworthy. Other employees chimed in on the post and left Gerding additional kudos, and her manager saw the message as well.
With a thriving culture, businesses are more performant, they have much higher retention and employees are willing to go above and beyond. Eric Mosley, Founder and CEO, Workhuman
“It’s something I may not have normally shared with my manager because to me, it felt like I was just doing my job. But she was the first person to say congrats,” Gerding says. “Having your manager recognize you for something you did feels really good.”Gerding says she generally receives moments of recognition through the Hylight platform a few times a month, and just as frequently to colleagues. Sometimes, recognition moments have award points attached that can be redeemed for gift cards or other items available through the platform—Gerding is saving hers up to redeem for camping gear. But the biggest benefit of recognition, she says, is the effect it has on employee relationships and overall company morale.“Having a program like this really makes you stop and think about the importance of thanking your colleagues for their help, especially in situations where you might not typically think to do so,” she adds. “And when you feel appreciated, you’re naturally happier and more motivated to pay gratitude forward.”
In 2016, when Emily Burroughs started at BGSF, a Texas-based staffing-solutions provider, the company recognition program was limited to its sales team—top sellers could qualify for a free trip. But as the firm continued to grow and make acquisitions, Burroughs, as vice president of communications and culture, saw value in creating a formal, inclusive recognition program that would allow people across BGSF to be celebrated for their good work.In March 2021, the company launched BiGDeal, a social recognition program based around the organization’s core values: growth, innovation, integrity, fun, teamwork and service. Any of BGSF’s 475 internal employees can go on the platform to recognize another employee who showcases one of these values. They can also award points that can be redeemed for gifts.“It’s gained a lot of traction, and our data shows that nearly all—94%—of our employees have participated at some point,” Burroughs says.Last summer, on a companywide call, one employee shared ideas about how to best use a new technology tool BGSF had recently implemented. Afterward, Burroughs sent that colleague a recognition moment that was posted on the BiGDeal platform, thanking him for sharing his knowledge and demonstrating an innovative mindset. The employee then sent her an email letting her know that he was so heartened by her message that he printed it out, hung it up at his desk and called his mom about it.“I didn’t anticipate that reaction, but it really underscored the power of words,” Burroughs says. “What took me just a few seconds to write ended up having a deep impact on him and his work, and, in turn, his response had a lasting effect on me.”BiGDeal not only infuses the workplace with positive energy, but has also encouraged BGSF’s management to be more intentional and strategic in cultivating a culture of recognition and appreciation. The hope is to extend the program’s reach to include the company’s numerous consultants, ensuring that everyone can experience the career-enhancing impact of being recognized.“We all like to be praised and acknowledged for the work we do, and not just during annual performance reviews,” Burroughs says. “People today choose where they want to work based on the culture of the company. Building a culture of recognition helps us attract and retain great talent.”
Beyond the impact of workplace appreciation and recognition to individual employees, data shows the significant positive financial impact it can have on organizations. Those that strategically invest in recognition have 23% higher profitability on average and far less costly employee turnover, according to Workhuman’s joint research with Gallup. An organization with 10,000 employees, for example, can see savings of $16.1 millionOpens in a new tab thanks to lower turnover.
The data illustrates the high value of improving employee engagement through recognition and how such programs, ultimately, pay for themselves.
Find out more about the value of gratitude at work.Opens in a new tab
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