Great employers express their appreciation to employees by creating a solid office recognition culture.
Employee appreciation shows employees that the company does not take their hard work, dedication, talent, and overall contribution to the company’s success for granted.
It has been a cornerstone of effective management for many years. However, there is a right and wrong way to do it. If done wrong, it can convey a different message that could diminish team morale and productivity in the workplace.
What is employee appreciation?
Employee appreciation is the act of recognizing and valuing your employees’ contributions to the company.
It does not focus solely on performance; it instead shows your employees that you value them as people and treasure them as members of the team.
Employee appreciation vs. employee recognition
Employee appreciation and employee recognition are often used interchangeably; however, they mean different things.
Employee appreciation celebrates employees as humans first and staff second. It is not based on how much they have contributed to the company’s success but instead, an avenue to thank them for being part of the company.
This can be done by presenting them with an award. Appreciation awards such as service awards reward employee loyalty to the company, not necessarily their performance.
Aside from the presentation of awards, employee recognition is mostly verbal. It includes positive feedback from managers and words of encouragement in the event of a project failure. It can be as simple as a text message or shout of “Well done! Good job!”
Since everyone can be appreciated, there is no missing out. From the janitor to the CEO, every team member can be appreciated for being part of the company.
Employee recognition, on the other hand, celebrates what your employees have done. It is primarily based on their performance. Recognition awards such as Rising Star and Best Performer awards are designed to spark healthy competition among employees. Other examples of employee recognition awards include:
Employee of the Month awards
Innovation Award
Teamwork Award
Customer Service Award
Employee of the Year Award
Chief Closer Award
Capital Achievement Award
Big Kahuna Award
Most Improved Performer Award
The Growth Booster Award
The Wolf of [team name/company name]
Team Morale Award
Benefits of Employee Appreciation Program
An employee appreciation program is a system through which company leaders appreciate workers’ loyalty and contributions.
It makes staff feel more connected to the company. Some employees will remain in a company even when they could get higher pay in another company, all because of their company’s appreciation culture.
Appreciation makes employees feel happier and better about themselves, and this reflects in their work morale and productivity.
Employee appreciation, if done well, has a big positive impact on your employees and the business as a whole.
Boosts morale and engagement
When employees feel appreciated, they are more likely to be happy and satisfied with their jobs.
Happy employees usually have high morale, and this can improve their productivity by about 13 percent.
Meanwhile, unhappy employees cost organizations worldwide about $8.8 trillion, which is equivalent to 9 percent of global GDP.
Reduces employee turnover
Employees who feel they are not being appreciated or disrespected are more likely to quit their jobs and find employment elsewhere. In fact, 57 percent of people who quit their jobs in 2021 during the Great Resignation cited this reason.
Hiring a new employee may cost an organization about three to four times the salary of the employee who left.
An employee appreciation program can help retain your top talents, thus reducing turnover and hiring expenses.
Increases customer satisfaction
When your employees feel appreciated, so will your customers. A happier workforce usually delivers better customer satisfaction.
Happy customers are likely to bring more business; therefore, your revenue and profit will also increase.
Since employee appreciation helps retain your talents, your customer service will also experience continual improvement as skilled employees will often serve customers.
Improves the employer’s brand
Employees talk, and the internet allows them to give a review of your company’s culture anonymously.
Prospective employees research a company’s culture before applying for any vacancy. Organizations with good employee appreciation programs attract top talent compared to others with bad online reviews.
Aside from online reviews, prospective talents may talk to their network to gain insight into your culture. A positive review from an employee in your company can convince them to come on board instead of accepting an offer from your competitor.
Improves company culture
The broader the extension of the employee appreciation program within an organization, the higher the benefits. A strong employee appreciation program can help create a more positive and supportive work environment.
This can lead to better teamwork, collaboration, and innovation.
Employee appreciation ideas
Work can become overwhelming, and you forget to appreciate your employees. Fortunately, you do not always need to throw a grand party to show them appreciation.
Below are some employee appreciation ideas to show team members how much you appreciate them:
Public recognition: A simple “thank you” in a team meeting or company newsletter can go a long way.
Anniversary celebrations: If your staff does not, celebrate their birthdays and wedding anniversaries.
Flexible work arrangements: Offering flexible hours, remote work options, or compressed workweeks can improve work-life balance.
Professional development opportunities: Offering training, conferences, or tuition reimbursement demonstrates your investment in their growth.
LinkedIn recommendation: While this may only take a few minutes to complete, it will mean the world to your employees. It is an endorsement of their hard work and shows you are happy to tell the world about their commitment to their job.
How to create an effective employee appreciation program
To be effective, employee appreciation should come from both employers and colleagues. Team members are more productive when they believe their colleagues respect and appreciate them.
Some managers feel it is challenging to show their employees appreciation. This is because they are unaware that appreciation does not necessarily have to be grand.
It is also important to constantly re-evaluate your employee appreciation program to ensure it is effective.
Encourage regular greetings
Regular greetings might seem unnecessary, but they are valuable to your employees. They give employees the feeling of being noticed.
Create a routine that allows employees to share what they are working on and their dissatisfaction with you.
Also, encourage similar attitudes among team members, such as checking on a colleague who was absent at work, to foster team morale.
Give balanced feedback
Employees value feedback. They want to know the areas they can approve and others where they are superb.
Do not give both critical and positive feedback at once. Make them distinct to avoid confusing the employee.
Offer growth opportunities
Team leaders should not only complement employees’ commitment, but they should also help fight for growth opportunities, including bonuses and promotions.
Employers feel more appreciated if their managers discuss growth potential with them and provide available opportunities they can explore.
Offer flexibility
Managers should be empathetic. Little gestures, such as suggesting someone who is resuming after a sickness arrive an hour late, send a signal of trust and appreciation.
Offering employees the opportunity to work remotely to reduce their transportation expenses can make them feel more appreciated and valued.