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The American workplace has a big problem that is getting worse—burnout and poor well-being. According to MercerIn 2024, greater than 8 out of 10 employees shall be at risk of burnout.
A key reason for this is that employees do not feel valued in a way that resonates. In fact, Gallup found that 75% of employees with poor well-being feel undervalued at work and are considering leaving. In addition, recent research by OnePoll found that fifty% of American staff have left their jobs because they felt unappreciated. It’s clear that there’s a distinct appreciation gap—a key reason for today’s malaise.
To support a glad and subsequently thriving workforce, it is time for business leaders to renew our approach. In collecting data from over 300 organizations worldwide, we found that the correlation between business outcomes and worker engagement scores is almost linearFor firms that fall into the higher end of each of those sets of scores, we typically see an increase in business performance of 5% to 7%.
There is power in appreciation, and the advantages are tangible – each in worker satisfaction and business results.
What does appreciation in the workplace really mean?
In today’s landscape where employees expect more from their employers and coworkers, taking the time to point out appreciation is key. Appreciation makes an worker feel truly valued beyond their contributions. It’s not only about their accomplishments.
Recognition is about what people do, while appreciation is about who they are. Both play a big role in building worker well-being, but appreciation is key to self-fulfillment and an worker who feels truly valued.
It has been found that individuals who are recognized are 23% simpler and productive, and at the same time, individuals who are appreciated and valued for themselves are 43% simpler and perform higher. When employees feel truly appreciated, firms have a productive, engaged workplace with individuals who need to stay and are motivated to succeed. It’s not only the right thing to do, it’s essential for your bottom line.
The movement to create a culture of appreciation not involves traditional HR practices that are perceived as transactional and underperforming. Appreciation must now be a proactive strategy that builds a more authentic work environment and ultimately improves overall well-being.
Striving for well-being through appreciation
There are many variables that go into building our overall well-being, each at work and in our personal lives, but appreciation is the epicenter. Building a successful culture of appreciation requires a comprehensive people strategy that also meets the needs of physical, mental, dietary and financial well-being – each aspect is multidimensional.
According to Maslow’s hierarchy of needs, a person will feel most valued when all other needs are met, which include physiological needs (discounts and advantages), safety (physical, mental, financial and dietary well-being), love and belonging (culture and connection), self-esteem needs (recognition and rewards), with each successive level resulting in appreciation at the top, fulfilling self-actualization.
It’s vital to prioritize all needs appropriately. For example, an worker won’t feel truly valued if they never feel appreciated or if they don’t feel they’re paid fairly. When it involves well-being, it’s vital to see appreciation as a larger picture, improving advantages, practices, and workplace culture to assist employees reach the top of the pyramid. With a foundation of appreciation in place, well-being can flourish.
How to get there?
When it involves mastering a culture of appreciation in the workplace, well-being advantages are a key piece of the puzzle. By considering the holistic worker experience in line with Maslow’s hierarchy of needs, management must assess its offering to make sure that all needs are met.
Begin this process by asking: What attracts employees to a company/role? Where do people need to stay? How do they need to build and develop their careers? Does working for us support or inhibit worker well-being? Do managers have the tools and training they should ensure employees understand the impact their work has?
Another method to show appreciation to your employees is to get to know your people and invest in their lives, at work and beyond. This helps cultivate meaningful relationships in the workplace, and leadership can tailor their approach to well-being based on the individual, showing care in a way that resonates and building a foundation of trust, support and appreciation.
There are many tangible actions that each management and employees can take to create a workplace focused on appreciation. Among employees who felt truly appreciated, listed good communication with the manager (58%) and recognition of non-public achievements (51%) at the highest level.
With all this in mind, it’s crucial to build a people-centric management culture, where firms provide training, resources, and tools that support business leaders and managers in their efforts to build relationships with their teams and get to know each person where they are—and as a whole person, not only a number in the organization. When leadership prioritizes this mindset, OnePoll found that valued employees are 10 times more prone to feel like they belong in their organization—and a further 53% of individuals said they feel appreciated would help them stay with the company longer.
Finally, recognition needs a seat at the boardroom table. Teams that need to take this next step need buy-in from management first to make sure worker recognition stays a priority from the top down.
One method to achieve this is to appoint a Chief Employee Recognition Officer, which can enable a senior executive to focus on worker well-being and champion the development of a tactical, people-focused technique to create a culture of true appreciation inside the company.
Appreciation appreciates
At the end of the day, people thrive in an environment where they are valued and respected by those around them. This sense of value carries over into their work and the wider world, creating a butterfly effect that reinforces and fuels success in each their personal and skilled lives.
When it involves the workplace, appreciation is limitless and inclusive. While it might start small, it may well grow exponentially, contributing to the collective well-being of employees. Appreciation is like expanding ripples on a pond.