The ROI of Recognition: Why Investing in Employee Appreciation Matters

Employers who actively cultivate a culture of appreciation and reward see tangible benefits in employee engagement and performance.

Last Friday marked Employee Appreciation Day, a yearly event that takes place on the first Friday of March. This day isn’t merely a symbolic gesture of acknowledging employees’ diligence and accomplishments. It serves as a meaningful opportunity for organizations to genuinely thank their team members and acknowledge their crucial role in the company’s prosperity. However, the advantages of appreciating employees aren’t confined to this single day. They have a far-reaching impact.

This yearly observance could have effects that go beyond merely enhancing team spirit. Recognizing employees isn’t just a moral and business obligation, but also a strategic necessity that can strengthen a company’s performance and result in substantial ROI. The lack of employee recognition is associated with disengagement. The global economy suffers an annual loss of $8.8 trillion due to inadequate employee engagement.

Research indicates that appreciated and recognized employees are more engaged, motivated, and productive, leading to a substantial increase in profits. A Gallup survey reveals that companies with high levels of employee engagement outperform their competitors by 147% in earnings per share.