For advice firms reviewing their business strategy for 2025, staff retention and recruitment is always a key driver of success. Sharing some excellent practical tips with us, Tsvetelina Hinova, co-founder of UK-based tech start-up Thankbox, explains how CEOs, HR and BD managers are increasingly using employee appreciation measures to boost productivity, reduce absenteeism, recruit and retain the best talent and meet targets – and how you can do so too.
We all know instinctively when we are happy at work and employers value continuity and stability so having a contented workforce is a win-win for any business or organisation.
In today’s economy, with historically low levels of unemployment, remote working and disparate workforces often spread across borders and time zones, employers must work harder to keep hold of the most talented and engaged workers.
As well as ensuring that they are productive, profitable, diverse and progressive, one of the most important metrics for modern businesses is employee appreciation.
What is Employee Appreciation?
Employee appreciation is about more than simply paying a competitive salary, offering a Christmas bonus, or organising occasional Friday afternoon drinks.
It transcends mere engagement strategies or career development pathways. It’s about creating a welcoming, inclusive, and genuinely appreciative organisational culture. It is about treating employees as human beings, recognising their individual value and contributions beyond their job descriptions.
Remembering personal details – birthdays, anniversaries, the birth of a child, or even a favourite coffee order – demonstrates a genuine interest in their lives outside of work.
It involves recognising and celebrating achievements, both big and small, acknowledging landmark occasions such as long service awards, and providing a memorable send-off for departing employees, making them feel valued and missed.
Creating a culture of appreciation fosters loyalty, boosts morale, and ultimately contributes to a more productive and successful organisation.
Employee appreciation as a strategic investment
With many western economies in the midst of, or facing, recession, employee appreciation emerges as a powerful and cost-effective solution for businesses to
remain productive and profitable, particularly if they have remote or hybrid working employees.
Offline workers, who receive a single gesture of appreciation weekly, are 56% more likely to be engaged than average, and more than twice as likely as those who are never recognised. Similarly, remote workers receiving at least monthly monetary recognition are 42% more likely to report being productive.
A 2023 State of Recognition research study showed that feeling appreciated significantly mitigates the impact of layoffs, understaffing, salary concerns, and even a heavy workload. Another study found that about two in three people would quit their job if they didn’t feel appreciated.
More than half of employees believe recognition would inspire greater productivity, reduce job-hunting desires, maintain morale during layoffs, and lessen the negative effects of an underpaid or stressful role.
Implementing effective appreciation programmes
Creating a culture of appreciation doesn’t require a massive overhaul. Simple actions can make a significant difference.
A good starting point is budgeting 1% of payroll for recognition programmes and scaling up based on results. Importantly, frequent recognition proves more effective than salary increases alone in boosting engagement and retention.
By prioritising appreciation, businesses can improve employee morale, boost productivity, and reduce turnover costs, ultimately enhancing their bottom line and securing their future.
This requires a company-wide commitment, spearheaded by leadership and supported by a strategic budget allocation.
The art of employee appreciation
The “art” of employee appreciation lies in the creative and personalised approaches used to show gratitude and build strong relationships. It is about the thoughtful gestures that resonate deeply with individuals.
This requires an understanding of individual personalities, communication styles, and cultural backgrounds Thankbox is an online card and gifting platform, and we’re on a mission to support cultures of appreciation everywhere.
We recognise that appreciation does not come easy for everyone, so we’ve set up an AI message generator that allows you to create a personalised message using different tones including formal, funny and supportive.
We also have a simple framework to help people to share appreciation confidently in the workplace.
· Be specific: Call out specific actions, behaviours, or contributions. Example: “I appreciate how you took the lead in that meeting. Your presentation was clear, I can see you had prepared well.”
· Highlight the impact: Explain the impact their actions had on you, the team, or the project. Example: “Your presentation made it simple for everyone to agree the next steps, which will keep the project on track.”
· Express genuine gratitude: Make it clear that their efforts are appreciated. Example: “I’m grateful for the extra effort you put in. It means a lot to have someone like you on the team.”
· Encourage future contributions: Encourage them to keep it up and express confidence in their abilities. Example: “I’m looking forward to seeing what you’ll bring to the next project. Keep up the great work!”
The maths of employee appreciation
The “maths” of employee appreciation involves quantifying its impact on the bottom line.
The cost of replacing an employee can be substantial, encompassing recruitment fees, training expenses, and the loss of productivity during the transition period.
Studies consistently demonstrate that organisations with strong cultures of appreciation experience significantly lower turnover rates. This translates directly into cost savings, improved efficiency, and enhanced profitability.
Furthermore, employees who feel appreciated are more productive and produce higher quality of work.
The science of employee appreciation
The “science” of employee appreciation revolves around understanding the psychological and behavioural factors that drive employee motivation, satisfaction, and retention.
Positive psychology informs us about the power of positive reinforcement, recognition, and appreciation in boosting morale and fostering a sense of belonging. Behavioural economics highlights the impact of both intrinsic (internal motivation) and extrinsic (external rewards) motivators on employee performance. Understanding the different generational values and preferences is also crucial.
For example, younger generations might value flexible work arrangements and opportunities for professional development more than older generations, who may prioritise stability and recognition of experience.
Applying these scientific principles leads to the creation of targeted and effective strategies, carefully designed to resonate with the specific workforce demographics. Regular surveys, feedback mechanisms, and data analysis can provide valuable insights to continually refine and improve the effectiveness of appreciation programmes.
10 “small but meaningful” things employers can do to make workers feel valued:
· Regular “thank you’s”: a simple verbal expression of gratitude can go a long way.
· Personalised birthday/anniversary cards: A thoughtful gesture that shows you care.
· Team lunches or coffee breaks: Encourage informal social interaction.
· Use online appreciation platforms: Streamline the organisation of celebrations and gift collections.
· Public acknowledgment of achievements: Celebrate successes in team meetings or company newsletters.
· Opportunities for professional development: Invest in employee growth and advancement.
· Flexible work arrangements: Show consideration for work-life balance.
· Employee assistance programmes: Provide resources for mental and physical well-being.
· Regular feedback sessions: Encourage open communication and constructive criticism.
· Memorable send-offs for departing employees: Make them feel appreciated for their contributions.
By integrating the arts, maths, and science of employee appreciation, organisations can create a workplace culture that not only attracts and retains top talent but also fosters a highly engaged, motivated, and ultimately, successful workforce.
The investment in employee appreciation is not merely an expense; it is a strategic investment with a significant and measurable return.
Tsvetelina Hinova is co-founder of Thankbox, an online card and cash collection service whose main goal is to foster appreciation and connectivity within teams.
