Why you should show appreciation for employees

Showing appreciation and recognizing your employees’ hard work can benefit both your company and your staff. Some of the biggest benefits include:

• Increased morale: When employees receive recognition for their hard work, they feel personally appreciated, which improves their confidence and their enthusiasm for their job. Increased employee morale makes it more likely that employees will stay with your company for longer. 
• Improved engagement: Regular employee recognition and reward systems often incentivize team members to do their best, which leads to increased engagement at work and a greater sense of connection to the company. They also see themselves as a valued team member, which can make them more loyal and willing to work hard for your company. 
• Better performance: When employees believe they’ll receive appreciation for good work, they perform better and increase productivity levels, which can contribute to better results and business growth. They also learn which behaviors and achievements you value, so they try to replicate those things on future projects. 
• Stronger company culture: Businesses that recognize employees frequently often incorporate appreciation into their company culture, which can create a positive work environment and stronger sense of teamwork.
• Improved talent recruitment: Being known for recognizing your employees can be good for your reputation. It could help you recruit new talent when you’re hiring.  

Types of employee recognition

You can use a variety of recognition methods to give everyone the type of acknowledgment that makes them feel good. Employee recognition doesn’t have to be an expensive, complicated system. Simple techniques are often just as effective.

Some types of employee recognition you can use include:

• Formal: This type of recognition is planned and often part of a recognition program. It might include bonuses, awards and celebrations.
• Informal: You don’t have to wait for formal, planned opportunities to provide recognition. Unplanned shout-outs to the group or one-on-one conversations can be just as effective. Watch for chances to recognize and thank your employees for their efforts, even if it’s something little like being extra friendly to a client or turning in a project before the deadline.
• Top-down: With this type of recognition, the manager or company recognizes an employee. The praise comes from the managers or top executives to the employees. This is a traditional recognition method and can be powerful since many employees care what their bosses think of them.
• Peer-to-peer: You can also encourage peer recognition where employees recognize their colleagues. This can be done informally by creating a culture that values acknowledging each other’s efforts. You can also make the process formal by creating a system where peers can submit compliments or thank you messages to their colleagues.

Best practices for showing appreciation at work

Showing appreciation at work seems easy, but it can be overwhelming if you’re not sure where to start. Use the following ideas to show your gratitude to your employees:

• Acknowledge accomplishments right away
• Write a thank-you note
• Thank your team publicly
• Celebrate traditions
• Ignore small mistakes
• Give a financial incentive
• Offer extra time off
• Buy lunch for your team
• Create a rewards system

1. Acknowledge accomplishments right away

The easiest way to recognize your employees for good work is to acknowledge their contributions right away, in the moment. Show your appreciation in person to make the maximum impact. For example, you can congratulate team members for leading an important meeting successfully or completing a major project on time and under budget. The quick recognition reinforces the action when it’s still fresh and lets employees know you’re always paying attention to their work.

2. Write a thank-you note

When you can’t show your appreciation right away or when the magnitude of the accomplishment deserves more than a quick “congratulations,” put your gratitude in writing. Take the time to write a personal thank-you note or an email that conveys your genuine appreciation, including recognition of their hard work and acknowledgment of their professional growth. This method of appreciation for employees shows that you put extra thought and effort into it, so it can be more meaningful. Plus, the written note is something the employee can keep as a reminder of their accomplishments.

3. Thank your team publicly

While many people appreciate personal expressions of appreciation, it’s also important to make your recognition public, especially when your team has accomplished something significant. To thank employees publicly, say a few words about their achievements at your weekly department meeting or monthly staff meeting. You can also include a congratulatory note in your internal newsletter or on your company’s social media platforms if you want to let your customers know about it, too.  

4. Celebrate traditions

If your employees regularly contribute excellent work, recognize them regularly. Create a tradition that everyone can look forward to, such as a monthly team-building or social event. In addition to showing appreciation to your employees, you can also strengthen team bonds and reinforce a positive work environment regularly.

5. Ignore small mistakes

Sometimes the best way to show appreciation is to give your employees leeway when they need it. If they make small mistakes, such as missing a project deadline by a few hours or neglecting a minor task, allow them to try again rather than reprimanding them. Taking this route shows that you appreciate their hard work and trust them to do their best.

6. Give a financial incentive

To encourage employees to do their best, consider offering financial incentives. You can start small by offering gift cards to local stores or coffee shops. To recognize bigger accomplishments, offer quarterly, annual or project-based bonuses to team members who reach predefined goals or make the most substantial contributions.

7. Offer extra time off

Although most employees value financial incentives, many also appreciate intangible rewards such as additional paid time off. Consider giving top-performing employees an afternoon off each month, or allow select team members to adopt a flexible schedule during a given time frame. You can also show your recognition by allowing employees to work remotely, which is a benefit that people in many industries value highly.

8. Buy lunch for your team

When you want to improve team morale and show appreciation to your employees at the same time, buy everyone breakfast, lunch or coffee. Order into the office to save time, or make the occasion truly special by taking everyone out for a meal. As an additional reward, consider asking your team’s top performers to choose the venue.

9. Create a rewards system

If each of your employees has different preferences for receiving recognition, develop a rewards or incentive system that allows each person to choose their incentives. Assign a certain number of points to major tasks and accomplishments, and track the points that each team member receives. Allow them to trade their points for rewards of their choice, such as days off or contributions toward continuing education.

Related: How to Find Good Employees

Frequently asked questions about showing appreciation for employees

Read through the following frequently asked questions to learn more ways to show employee appreciation in specific instances:

What is the best way to show appreciation for employees?

There isn’t one best style of showing appreciation for every situation. Each workplace is different, and every employee feels motivated by different types of appreciation. Testing out different methods and tailoring your appreciation efforts to individuals as you learn what they like can make it more effective. 

How can you make employee recognition more effective?

Employee recognition should be genuine, meaningful and specific. Instead of just telling someone they did a good job, tell them specifically what they did well. You might let them know you noticed that they kept their cool and de-escalated a situation with an upset client very well. Recognition should also be fair and consistent. Make sure you’re recognizing all employees consistently without showing favoritism to some people. Regular feedback also helps employees build trust and realize that you’re consistently grateful for their contributions. 

How can you show appreciation to your coworkers?

To show appreciation to your peers or to fellow managers, consider writing them a recommendation that highlights their impressive contributions. You can make it public by sharing it on a social media networking site, or you can keep it private by providing it to a human resources employee or a potential employer.

What can you say to show appreciation to your employer?

To show gratitude to your employer or a company executive, consider giving them a genuine compliment during a meeting. Take care to highlight their leadership or experience so that others can also recognize their hard work. Alternatively, consider using your company’s feedback system to communicate your appreciation for your employer via the human resources team.