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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 in 10 employees are at risk of burnout by 2024.
A key reason for this is that employees don't feel valued in a way that resonates with them. In fact, Gallup found that 75% of employees whose well-being suffers feel undervalued at work and consider quitting their job. In addition, a recent study by OnePoll found that 50% of American workers have left their jobs because they felt underappreciated. It's clear that we're dealing with a glaring appreciation gap – a major reason for low well-being today.
To foster a happy and successful workforce, business leaders need to rethink their approach. Collecting data from over 300 companies worldwide, we found that the correlation between business performance and employee engagement is nearly linear. For companies that score high on both, we typically see a 5-7% increase in business performance.
The power lies in appreciation and the benefits are noticeable for both employee satisfaction and business success.
Related: Do your employees feel recognized? 10 effective ways to set up employee recognition programs
What does appreciation in the workplace really mean?
In today's workplace, where employees expect more and more from their employers and colleagues, it's important to take the time to show appreciation. Appreciation is what makes an employee feel truly valued beyond their contributions. It's not just about their achievements.
Recognition is about what someone does, while appreciation is about who they are. Both play a big role in increasing employee wellbeing, but appreciation is the key to self-actualization and an employee who feels truly valued.
It has been found that people who receive recognition are 23% more effective and productive, while people who are valued and appreciated for who they are are 43% more effective and productive. When employees feel truly valued, companies have a productive, engaged workplace with people who want to stay and are motivated to succeed. Not only is this the right thing to do, it's critical to your bottom line.
The trend towards a culture of appreciation goes beyond traditional HR practices that are seen as transactional and not up to par. Appreciation today must be a proactive strategy that creates a more authentic work environment and ultimately increases overall wellbeing.
Increasing well-being through appreciation
There are numerous variables that affect our overall well-being both at work and in our personal lives, but appreciation is at the epicenter. Building a successful culture of appreciation requires a comprehensive people strategy that also addresses physical, mental, nutritional and financial well-being needs – each aspect is omnidimensional.
According to Maslow's hierarchy of needs, a person feels most valued when all other needs are met. These include physiological needs (discounts and benefits), safety and security (physical, mental, financial and nutritional well-being), love and belonging (culture and connection), and the need for self-esteem (recognition and reward), with each level leading up to esteem at the top, thus enabling self-actualization.
It's important to prioritize all needs accordingly. For example, an employee will not feel truly valued if they never feel recognized or feel they are not fairly compensated. When it comes to wellbeing, it's important to look at appreciation as a bigger picture and improve benefits, practices and work culture to help employees reach the top of the pyramid. When a foundation of appreciation is laid, wellbeing can flourish.
Related: Why saying “thank you” is more important than giving employees a raise
How do we get there?
When it comes to creating a culture of appreciation among the workforce, wellbeing benefits are a crucial piece of the puzzle. Taking into account the entire employee experience according to Maslow's hierarchy of needs, leadership must evaluate their offerings to ensure all needs are met.
Start this process by asking yourself: What attracts employees to a company/role? Where do people want to stay? How do they want to build and advance their careers? Does working for us promote or hinder employee wellbeing? Do managers have the tools and training needed to ensure employees understand the impact of their work?
Another way to show appreciation to employees is to get to know your employees and get involved in their lives, both at work and at home. This helps build meaningful relationships in the workplace and allows management to tailor their approach to each individual's wellbeing by showing care in a way that resonates and building a foundation of trust, support and appreciation.
There are many concrete actions managers and employees can take to create a workplace characterized by appreciation. Among employees who felt truly valued, they cited good communication with a supervisor (58%) and recognition of personal milestones (51%) at the top.
With this in mind, it's paramount to build a culture of employee-centric management, where companies provide training, resources, and tools that help business leaders and managers build relationships with their teams and meet each individual where they are—as a whole person, not just a number within an organization. When leadership prioritizes this mindset, OnePoll found that valued employees are 10 times more likely to feel like they belong in their organization—and an additional 53% of respondents said that feeling valued would help them stay at their company longer.
Finally, appreciation needs to be brought to the boardroom table. Teams looking to take this next step need buy-in from senior leadership first and foremost to ensure employee appreciation remains a priority from the top down.
One way to do this is to appoint a Chief Appreciation Officer, who will give a seat at the table to someone from senior management who will be responsible for employee wellbeing and will be committed to developing a tactical, employee-focused strategy to foster a culture of genuine appreciation within the organization.
Related: The best way to celebrate Employee Appreciation Day is more than once a year
Appreciation appreciates
Ultimately, people thrive in environments where they are valued and respected by those around them. This feeling of appreciation spills over into their work and the world at large, creating a butterfly effect that strengthens and promotes success in both personal and professional life.
In the workplace, appreciation is limitless and all-encompassing. It may start small, but it can grow exponentially and contribute to the collective well-being of employees. Like spreading ripples in a pond, appreciation increases appreciation.
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