Whether you’re working in finance, tech, construction – any industry – or in a start-up or well-established business, employee appreciation is important if you want to retain talent and build a positive work culture.

Employees who feel appreciated and valued work harder, are more motivated and happier.

Ultimately, this translates to better business results, more innovative thinking and collaboration, and a more productive team.

Reward and recognition are key if you want to build a positive and productive workplace, whether it’s in the form of an appreciation letter from boss to employee, a shout-out at the monthly office meeting or a bonus at the end of the season.

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Here’s how putting employee appreciation front and centre can greatly benefit your organisation.

Appreciated employees are happier and more productive

An employee who feels like they’re getting recognition at work also feels good about what they do. By rewarding and recognising your team’s efforts, you’re making them feel like their actions and hard work is, in fact, noticed and making an actual contribution. This leads team members to feel more positive about their role and the company as a whole and creates a positive energy overall in the office or workplace.

On top of this, studies have shown employees who are happy also have greater output: on average, happy employees are around 12% more productive than their unhappy counterparts. In other words, by making your employees feel appreciated, you’ll have a happy team that works harder and smarter – leading to further opportunities to go above and beyond on their tasks and projects.

Appreciated employees are more satisfied with their job

In a survey of more than 1,000 companies, 70% of those who were recognised and appreciated for good work reported feeling satisfied with their jobs, compared to 39% satisfaction for those who weren’t appreciated.

Appreciated employees tend to feel more fulfilled in their roles, leading to higher levels of motivation and an increased connection to your company’s missions and values – and ultimately, this results in better workplace performance.

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Appreciated employees stick around for longer

It’s not surprising that an appreciated team is a more loyal team: studies show employees who feel recognised by their managers are five times more likely to stay at their company. The longer they stay, the more they understand the ins and outs of the business and can therefore work more efficiently. Plus, they have more time and opportunity to work on new projects or improve new processes, which benefits your company in the long run.

Appreciated employees trust their leaders

When employees feel like their leaders recognise their hard work and are showing gratitude in the workplace, they have a higher level of trust in their boss: a survey found almost 90% of employees who received appreciation or recognition from their boss within the past month had higher levels of trust in their boss, versus 48% of employees who received no recognition.

Trust is crucial in the workplace. An employee that doesn’t trust or value their manager’s opinion can lead to workplace conflict and a reduction in productivity and performance. On the flipside, teams that have a high level of trust are more likely to collaborate to solve problems, and work together more effectively in order to achieve company goals.

How can you reward and recognise your employees?

When it comes to introducing more initiatives for employee recognition, there are plenty of actions that go beyond giving a pay rise or bonus. These can include:

  • Introducing peer recognition programs, where colleagues regularly give positive feedback to each other
  • Providing team members with a day off
  • Boosting motivation with a new job title
  • Giving employees greater responsibilities or new projects
  • Treating your team to a dinner or team activity (strictly non-work-related)
  • Implementing ‘Employee of the Month’ or ‘Team of the Month’ programs to reward good work
  • Encourage bosses to write an appreciation letter to employees for outstanding performance


No matter what initiatives you put into place, consistency is key if you want to reap the benefits of your employee reward and recognition program. By introducing small actions on a regular basis, such as saying, “Thank you, I appreciate all your hard work”, as well as bigger actions such as an annual pay rise or a quarterly bonus, your team will feel more valued and appreciated. And your entire organisation will benefit as a result.

If you have specific hiring needs and want access to the best talent, get in touch with a specialist recruitment consultant.

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