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American workplaces have a big problem, and it's getting worse — burnout and poor well-being. According to Mercer, more than 8 out of 10 employees are at risk of burnout in 2024.
A key reason for this is that employees aren't feeling valued in a way that resonates. In fact, Gallup found that 75% of employees whose well-being is suffering feel underappreciated at work and are considering leaving their jobs. Additionally, recent research from OnePoll found that 50% of American workers left a position because they felt underappreciated. It's clear that we're looking at a stark appreciation gap — a key reason behind poor well-being today.
To foster a happy and therefore flourishing workforce, it's time for business leaders to revamp our approach. When collecting data from over 300 organizations across the globe, we found that the correlation between business performance and employee engagement scores is nearly linear. For those companies that appear in the higher range of both these score sets, we typically see a 5-7% increase in business performance.
The power lies in appreciation, and the benefits are tangible for employee happiness and business outcomes alike.
Related: Do Your Employees Feel Recognized? 10 Powerful Ways To Set Up Employee Recognition Programs
What does appreciation really mean in the workplace?
In today's landscape, where workers expect more from their employers and peers, taking the time to show appreciation is key. Appreciation is what makes an employee feel truly valued outside of their contributions. It's not just about their accomplishments.
Recognition is about what people do, while appreciation is about who they are. Both have a large role to play in building up employee well-being, but appreciation is the key to self-actualization and an employee who feels truly valued.
It's been found that people who are recognized are 23% more effective and productive, yet people who are appreciated and valued for themselves, are 43% more effective and perform better. When employees feel truly valued, businesses have a productive, engaged workplace with people who want to stay and are motivated to succeed. It's not only the right thing to do but also essential to your bottom line.
The movement toward creating a culture of appreciation no longer involves traditional HR practices that are viewed as transactional and don't meet the mark. Now, appreciation needs to be a proactive strategy that builds a more authentic work environment and ultimately enhances well-being overall.
Driving well-being through appreciation
There are numerous variables that go into building up our overall well-being, both at work and in our personal lives, but appreciation is the epicenter. Building a successful culture of appreciation demands a well-rounded people strategy that meets physical, mental, nutritional and financial well-being needs as well — each aspect is omnidimensional.
According to Maslow's Hierarchy of Needs, a person will feel most valued when all other needs are met, which include physiological (discounts and benefits), safety and security (physical, mental, financial and nutritional well-being), love and belonging (culture and connection), self-esteem needs (recognition and rewards), with each level building up to appreciation at the top, fulfilling self-actualization.
It's critical to prioritize all needs accordingly. For example, an employee won't feel truly appreciated if they never feel recognized or if they feel they aren't being compensated fairly. When it comes to well-being, it's critical to consider appreciation as the bigger picture, elevating benefits, practices and workplace culture to help employees reach the top of the pyramid. With a foundation of appreciation laid, well-being can flourish.
Related: Why Saying 'Thank You' Is More Important Than Giving Employees a Raise
How do we get there?
When looking to master a culture of appreciation in the workforce, well-being benefits are a crucial part of the puzzle. Considering the total employee experience according to Maslow's Hierarchy of Needs, leadership must evaluate their offerings to ensure that all needs are being met.
Start that process by asking: What are employees attracted to in a company/role? Where do people want to stay? How do they want to build and grow their careers? Is working for us supporting employee wellbeing or inhibiting it? Do managers have the tools and training they need to ensure employees understand the impact their work is having?
Another way to show appreciation toward employees is to get to know your people and invest in their lives, in and out of work. This helps to foster meaningful relationships within the workplace and management can tailor their approach to well-being based on the specific person, showing care in a way that resonates and building a foundation of trust, support and appreciation.
There are many tangible actions leadership and employees alike can take to create a workplace centered around appreciation. Among employees who felt truly appreciated, they listed strong communication with a manager (58%) and recognition of personal milestones (51%) at the top.
With all that said, it's paramount to build a culture of people-focused management, where companies provide training, resources and tools that support business leaders and managers in their efforts to cultivate relationships with their teams and meet each individual where they are — and as a whole person, not just a number within an organization. When leadership prioritizes this mindset, OnePoll found that appreciated employees are 10 times more likely to feel that they belong within their organization — and another 53% of people said that feeling appreciated would help them stay at their company longer.
Lastly, appreciation needs a seat at the boardroom table. For teams looking to take this next step, you'll need leadership's buy-in first and foremost, to ensure that employee appreciation remains a priority from the top down.
One way to do this is through the appointment of a chief appreciation officer, giving someone in the C-suite a seat at the table to focus on employee well-being and advocating for developing a tactical people-focused strategy to foster a culture of true appreciation within the company.
Related: The Best Way to do Employee Appreciation Day Is More Than Once a Year
Appreciation appreciates
At the end of the day, people thrive in an environment where they are valued and respected by those around them. This feeling of value carries into their work and the wider world, creating a butterfly effect that empowers and fuels success in both their personal and professional lives.
When it comes to the workplace, appreciation is limitless and inclusive. While it may start small, it can grow exponentially, contributing to employees' collective well-being. Like expanding ripples in a pond, appreciation appreciates.
