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The Importance Of Employee Appreciation For Organizational Success | HR Cloud

Written by HR Cloud | May 11, 2022 2:00:00 PM

Do you appreciate your employees for their hard work? I guess not enough, but we all know the warmth when someone recognizes our good work and zeal to do more. It enhances productivity and job satisfaction. We must see the importance of employee appreciation and how to show it. 

As an employer, when you show appreciation, your workers feel good, making them work harder to achieve organizational goals. And this is why you must appreciate them regularly and not just ephemeral. 

Employee rewards and recognition matter more than you think because it is directly related to job satisfaction, employee engagement, and increased productivity. Therefore, this article will discuss the importance of employee appreciation for organizational success and some ideas on how you can appreciate them. But first, we must know the basics.


When is Employee Appreciation Day and Why it Matters?

The first Friday of March is the official Employee Appreciation Day. So, technically it was on March 4 this year. But, if you’ve failed to celebrate the event at work this work, do not worry, because employee appreciation is not a one-day affair. 

This day is a prime time to let your employees know that you value their hard work and recognize them duly for their achievements. But, employee appreciation is a year-long affair, and you cannot pick one arbitrary day and make it special for every employee. As an employer, you must make appreciation a part of your workplace culture and make it diverse and inclusive without discrimination and biases. 

Also, timely, public, and honest appreciation matters because it keeps your workers agile and enhances employee motivation. It is a way of confirming their abilities and skills. They tend to find meaning in their job and the contribution they’re making towards the company's success. By merely appreciating your workers, you will play a major role in your company’s bottom-line success. 

The Importance of Employee Appreciation 


It helps create a strong company culture

When you express gratitude and appreciation towards workers, they tend to show positive interpersonal relationships, and mostly it positively impacts team dynamics and communication. 

Employee appreciation gives birth to a company culture of kindness, empathy, and motivation. This, in turn, brings substantial benefits to you and your team as it depicts your company values are aligned with yours. 

Enhances employee happiness and morale 

Coping and keeping high levels of employee morale is your ultimate goal for an agile and active team. Individually, when employees receive appreciation, they feel valued and recognized for the small or significant contributions they made. As a whole, a small amount of gratitude can elevate employee morale and happiness, and you’ll not see dull faces at work. 

It encourages peer-to-peer recognition

Setting an example of an appreciation culture in the workplace will impact your company culture by promoting a peer-to-peer recognition culture. 

If recognition begins at the top level, it will also slide down to peer-to-peer interactions and appreciation. All you need is a common platform where peers can publicly appreciate their co-workers, which is possible with a rewards and recognition platform. It's time you create a culture of appreciation to enhance engagement levels at work. 

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Creates a positive work environment 

When you promote a culture of recognition and appreciation throughout the workplace, you will see a positive work environment. A company that nurtures thankfulness and kindness will always nourish a simple happy atmosphere. 

It helps enhance employee engagement

According to Gallup,  businesses with engaged employees show 17% more productivity and experience 21% more profits than companies with more disengaged employees. This is why employee engagement tool is crucial for business success. 

A known fact, recognition platforms always help increase employee engagement establishing a good relationship between employees and the organization. It adds dialogue and creates new communication opportunities beyond the usual business talks. 

Improves employee retention and decreases turnover 

As per the study of, around 54% of employees leave their jobs because of a lack of appreciation from their companies. Also, Gallup mentions employees who do not feel recognized at work are twice as likely to leave their jobs in the next year. 

Therefore, if you want to improve retention rates and decrease employee turnover, you must acknowledge workers’ efforts and contributions to your company's success. You will never achieve employees’ trust, loyalty, and tenure without appreciation. 

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Employees become your brand advocates

Happily, recognized and motivated employees will share their good experiences with their friends and family, and as a result, you get your very own brand advocates. In addition, you will see a diverse talent pool approaching your company. 

When employee appreciation is done timely and honestly, employees become your best brand advocates. And this gives you the recognition you want from the outside world. 

Employee appreciation improves employee performance

According to a study by, 69% of employees will show better performance at work if they receive timely appreciation and recognition. And 78% of US employees said recognition drives their motivation levels. 

So, now that we know employee appreciation elevates company culture, employee engagement, and retention, is that all? NO. Words of appreciation can also boost workers’ job performance as they will work harder for more appreciation.


According to Cutting Edge, Walt Disney experienced 15% more job satisfaction by implementing an agile recognition program. Hence, we must implement the same and appreciate employees for all their contributions. We hope now you understand the importance of employee appreciation and how it impacts your business growth.  

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Author Bio: This article is written by our marketing team at HR Cloud. HR Cloud is dedicated to providing powerful solutions for your HR teams and creating an exceptional employee experience. Our aim is to help your company improve employee engagement, onboarding, and to save you valuable time!