Acknowledgement and Appreciation: Key Drivers for Re-engaging Your Workforce
In today’s competitive and rapidly evolving workplace landscape, one truth stands out: employees care about more than just a paycheck. They want respect, a sense of purpose within their organization, acknowledgement and appreciation.
Contrary to belief, engagement is not an innate trait all employees have. Instead, it is an outcome that is shaped by organizations, managers, and team members.
Employees want to feel valued. And, when they don’t, they’re quick to disengage.
Workhuman’s 2019 International Employee Survey highlighted this shift in priorities—today’s workforce wants meaningful work in environments where they feel genuinely appreciated and respected.
The one thing those surveyed would change about their current work culture? More appreciation.
The one thing they wished their managers did more often? Show appreciation.
THE HIDDEN COSTS OF DISENGAGED EMPLOYEES
Organizations who are concerned with a lack of engagement among employees should be. Disengaged employees cost the world $8.8 trillion in lost productivity alone according to Gallup.
Absenteeism, accidents, errors, and turnover only add to those costs. According to Queens School of Business and Gallup, disengaged workers lead to:
- 37% higher absenteeism
- 49% more accidents
- 60% more errors and defects
- 18% lower productivity
- 16% lower profitability
- 37% lower job growth
- 65% lower share price over time
Disengaged employees are also more likely to leave their jobs. Employees who feel unappreciated are also expected to cause high turnover rates. A survey by OnePoll found that almost half of U.S. workers (46%) left a job because they felt unappreciated.
High turnover rates are incredibly costly. Gallup estimates that it costs 40% of their salary to replace frontline employees. For professionals in technical roles, that increases to 80% of their salary and for leaders and managers, that increases to an astronomical 200% of their salary.
RECOGNIZING DISENGAGEMENT IN THE WORKPLACE
Disengagement has continued to rise in recent years and it can do irreparable damage to your bottom line—and your future ability to recruit top talent. Identifying the level of disengagement in your organization is the first step towards improvement.
There are two types of disengagement: employees who are simply not fully engaged and employees who are actively disengaged.
Disengaged employees lack motivation and inspiration. While they may complete their work, they put in only what is expected of them. It can be difficult to identify this type of disengagement, but there are signs.
You may notice a decline in overall productivity and an increase in small errors. They will likely distance themselves from team building activities and may start to take more frequent sick days.
Actively disengaged employees are easier to identify. These workers openly dislike their job. They will actively complain about the job, expressing frustration or cynicism. They have higher absenteeism and significantly lower productivity.
WHY EMPLOYEES ARE DISENGAGED
Reasons for disengagement will vary by individual, organization, and even industry. But there are several universal causes that have been identified:
Poor leadership and management are one of the leading causes of disengagement among employees. This can segue to another leading cause: lack of autonomy, purpose and meaning.
Lack of transparency and communication can also lead to employees “quiet quitting” and looking for employment elsewhere. Lack of growth opportunities is another issue, particularly for Gen Z employees.
The easiest cause of disengagement to mitigate, though, is lack of recognition.
RECOGNITION RE-ENGAGES
Employees want recognition. They want to feel valued and appreciated for their contributions. Recognition not only reduces the likelihood employees will search for a new job by 56%, it actively increases engagement.
Quantum Workplace found that when employees believe management will recognize them, they are 2.7 times more likely to be highly engaged.
Acknowledgment and appreciation not only maintain employee engagement but it increases their motivation and produces better quality work. According to O.C. Tanner’s employee recognition study, 37% of respondents said more appreciation would motivate them to produce better work more often.
Deloitte’s data tied increased recognition to improved employee engagement. In fact, organizations with established recognition programs had 14% higher engagement, productivity, and performance.
Great Place to Work’s 2023 discretionary effort study found that a genuine “thank you” from management created a 69% increase in the likelihood of employees putting in the extra effort.
The study also showed that affirmation, feedback, and reward were the most effective way to motivate employees. In fact, employees who felt consistently recognized at work were:
- 2.6x more likely to think that promotions are fair
- 2.2x more likely to drive innovation and bring new ideas forward
- 2.0x more likely to say people here are willing to go above and beyond
And, yet, this is one of the most underutilized re-engagement tactics. It is simple, cost-effective, and highly successful. But, a Gallup survey found only 1 in 3 U.S. workers strongly agree that they received recognition or praise for doing good work in the past seven days.
HOW TO RECOGNIZE AND APPRECIATE
Recognition and appreciation are two different concepts, but both are important. Appreciation is typically associated with rewards in the form of compensation, additional benefits, and perks. Recognition, on the other hand, is more about recognizing employees for specific accomplishments.
Both are important, but recognition is more effective at actively motivating employees. Creating a recognition program is a good start, but there is a lot more to fostering employee engagement.
Make it easy for managers to recognize employees.
Don’t make this a drawn-out, overly complicated process. Simplify the system. Make it easy for managers, and even coworkers, to recognize great work and great attitudes.
Offer both public and private praise.
A simple message or note, or even an in-person thank you can make a big difference. But, don’t hesitate to publicly recognize great accomplishments.
Home Depot has Homer Awards that they present to employees during the monthly team meetings. This is not only a public recognition, but a continuous recognition. They’re given patches they can add to their aprons to continuously highlight these accomplishments.
While this is a retail environment, this is something easily adaptable in corporate settings as well.
Be timely in your recognition.
Don’t wait too long to recognize and appreciate big accomplishments. Leaving too much time between the accomplishment and the recognition will not have the motivating impact that timely recognition will.
There are, of course, natural milestones—like the end of the year, an employee’s work anniversary, the end of a project, etc.—that make sense too. More than half of all workers say their last work anniversary was not even acknowledged. This is such a simple thing to acknowledge and celebrate on a small scale.
This is not one-size-fits-all.
Gallup’s data reveals that the most effective recognition is honest, authentic and individualized to how each employee wants to be recognized. Don’t throw out generic fill-in-the-blank thank you cards like confetti. Recognize the employee and their accomplishments in a way that suits them and the environment.
It doesn’t have to be monetary.
There is a reason that recognition is more impactful than appreciation. That doesn’t mean that monetary appreciation should be ignored, but symbolic awards can significantly increase intrinsic motivation, performance, and retention rates.
MAKE THE EFFORT TO APPRECIATE
An employee who feels recognized and appreciated can make a significant impact on your bottom line. Disengaged employees are costly. Whether they’re “quiet quitting” or actively quitting, they cost you both money and morale.
Implementing strategies for acknowledgment and appreciation of your employees’ efforts is not only straightforward but also highly effective in re-engaging your workforce. By fostering a culture that values and celebrates contributions, organizations can cultivate a more motivated, productive, and loyal team.
Investing in employee recognition is not just beneficial—it’s essential for sustained success and growth.
