In all our work with leaders and clients in the past 23 years, one thing we’ve never heard is this:
“We give way too much recognition and appreciation around here.
If you could fix that, this place would be great!”
Instead, we often hear:
“I don’t get a lot of recognition or appreciation” OR
“We aren’t great at recognition and appreciation. How can we be better?”
When discussing gratitude in business—such as saying “Thank You,” offering recognition, expressing appreciation, or providing positive reinforcement—we often encounter agreement about its significance. However, there are still questions regarding its seriousness and whether it should be prioritized. Many leaders fail to recognize that gratitude is not merely a sentimental gesture; it actually contributes to tangible business outcomes.
In fact, research consistently shows that expressing gratitude in the workplace leads to improved employee performance and satisfaction. A recent study by the American Psychological Association found that 93% of employees who feel valued are motivated to do their best work, while 88% report feeling engaged. When it comes to financial success, employee engagement is crucial. Gallup has found that engaged employees are 23% more productive, directly contributing to a healthier bottom line.
Moreover, gratitude in the form of recognition fosters a positive workplace culture, which is essential for retaining top talent. According to Gallup, organizations with strong employee recognition show lower turnover rates and higher profitability. Employees who feel valued are much more likely to stay, reducing talent replacement costs.
But it’s not all about employees. Companies who value gratitude understand that it plays a vital role in nurturing client and other strategic relationships, institutionalizing a significant driver of financial results. Research shows that increased investments and intentionality in touchpoints within the client experience, including thanking them, yield greater loyalty. Client loyalty increases retention and referrals, and results in significantly improved profitability. It’s a virtuous cycle companies don’t want to miss out on. So, what are some practical steps you can take?
Practical Actions for Leaders
To harness the power of gratitude, leaders can implement several impactful strategies:
- Deliver Personalized Recognition: Take time to recognize individual contributions in a meaningful way. This could be through personalized thank you notes, public acknowledgments during meetings, or even small tokens of appreciation. Gallup’s research shows that honest, genuine, and individualized recognition is highly effective in enhancing engagement and retention.
- Create a Culture of Appreciation: Encourage a culture where gratitude is shared among all team members. Implement peer recognition programs that allow employees to acknowledge each other’s efforts. This not only fosters camaraderie but also reinforces a supportive work environment.
- Celebrate Milestones and Achievements: Organize team celebrations for achieving goals, whether big or small. Recognizing collective achievements fosters a sense of belonging and reinforces the idea that everyone’s contributions matter.
- Demonstrate Client Appreciation: An essential part of any Client or Customer Service Excellence program is scheduling periodic relationship-focused meetings to say Thank You and get feedback on their service experience. This practice shows that you value them and opens the door for constructive growth, improvement, and innovation in meeting their needs.
- Express Appreciation to Strategic Partners: Most leaders have a network of strategic relationships that extends beyond the company but may not be clients or customers. Often, these relationships produce helpful resources, facilitate introductions, or provide direct referrals. Make a habit of saying Thank You to acknowledge their contributions to your success and your firm’s success.
Incorporating gratitude into your leadership style is not just about being nice; it’s a strategic approach that can lead to enhanced employee engagement, stronger client relationships, and improved financial performance. In short, it’s not only the right thing to do – it’s just good business.
As leaders, we have the power to create environments where appreciation thrives, ultimately unlocking the full potential of our teams, organizations, networks, and clients. By prioritizing gratitude, we can cultivate a workplace culture that drives results and enriches the human experience at work.
Breakthrough Moments Questions
- What specific instances of gratitude have you witnessed in your organization that led to positive changes in team dynamics or performance?
- How can we further cultivate an environment where gratitude is regularly expressed and recognized among team members?
- In what ways has expressing gratitude influenced your relationships with clients or partners, and how can we build on these successes?
