I recently watched a TED Talk by Simon Sinek called “How Great Leaders Inspire Action” (which, by the way, you should see).

One of his points struck me: there is no correlation between how much money you pay a person and that person’s performance.

Instead, he argued that the best way to increase your team’s performance is by making your employees feel appreciated.

Although you can throw money around to motivate your team, how sustainable is this practice long-term?

Wouldn’t you rather invest in a productive, cost-effective method instead?

In this article, I highlighted the role leadership figures and employees play in fostering an appreciation culture and how employers can develop this culture within their organization.

Let’s dive in:

What exactly is the “culture of appreciation”?

In the world of work, appreciation culture is a management theory of creating worker happiness and satisfaction.

It’s about inspiring people to excel through recognition and encouragement.

The culture of appreciation is the perfect environment for individuals to do their best work because they feel supported enough to take risks

Sure, there may be mistakes or setbacks, but employees should be encouraged to learn from them rather than be punished.

Developing such a culture is not easy, or even desirable, but it’s possible if you stay positive and patient with yourself and your employees.

That said, why should organizations develop this culture of appreciation and what impact does it have on the performance and productivity of employees?

Why an appreciation culture is important for your business

It takes more than monetary benefits to keep employees happy and working at their optimum.

Engaged employees are happier, perform better, and stick around for longer.

Having a strong appreciation culture is the key factor identified by the Society of Human Resource Management (SHRM) which contributes to employee engagement.

The research also found that the most engaged employees are those who:

Have real ownership of what they do and see themselves as part of an overall team.
Feel that management recognizes and appreciates their abilities.
Have the confidence to express their ideas and feelings with ease.
Believe that their work is important for the overall success of the organization.
Are confident and optimistic about the future.

These are some of the reasons a culture of appreciation is important for your business:

Helps you attract and keep talents.
Ensure employee loyalty.
Boost employee morale.
Builds a more productive work environment.
Strengthen the connection between employees and the company they work for.
Encourage a more collaborative, creative and healthier work environment.

The role of leadership in developing a culture of appreciation

According to a study conducted by the American Psychological Society, 57% of employees believed that when employers make people feel valued and appreciated, it creates a better work environment.

When people aren’t recognized for their work, then they’ll most likely leave, and if you spend time and resources recruiting new talent, then this could be wasted if they also leave shortly after joining the team.

To set an appreciation culture in motion, leadership figures should consider these factors:

Understand how your employees view your organization

This may seem obvious, but many business owners simply don’t know how their employees view their company or what makes them feel appreciated.

So, how can you get more insight into this? By asking the people who work for you what they think about their workplace culture.

Employees may not always say what it is, but it may surprise you to find out what is important to them.

You’ll also find that as you develop your appreciation initiatives, other staff will feel confident to share what they appreciate about their work environment.

Understand where they think your organization is heading to

It’s also crucial for employers to understand where their employees think the company is heading.

This could lead to a few significant discoveries, like what matters to employees and how the organization can help.

For instance, employers can ask how employees see their career in your organization and the roles that they could have in the future.

This could create new opportunities for them and help you see more of their potential.

Employers are very aware of what needs to be done for the business to grow. They need to ensure that employees are keen on this as well.

Establish a solid foundation from the outset

Every employee must be properly assessed before they’re considered for a job.

This is the foundation for creating a culture of appreciation, and you have to make sure you set yourself up for success from the outset.

If you hire a candidate who is less than enthusiastic about the role, then chances are they may not last long and your business will suffer.

What can leadership figures do to encourage the culture of recognition and appreciation?

The following are some practical steps to take:

Recognise their efforts and achievements

Employees must be recognised for their efforts. Where appropriate, offer incentives and rewards for exceptional performance.

Build a community around the culture

It’s important to develop an in-house culture where team members feel they work in a community of like-minded people.

Show genuine interest

When you take a genuine interest in your employee’s personal lives, they’ll be more likely to trust you, which will reduce the feeling of overbearing leadership.

Create an appreciation board

A ‘wall of fame’ or ‘appreciation board’ celebrates employees who have made the company proud through their actions.

This could be anything from an employee who sacrificed their own time to excel at their job to a team that went above and beyond to ensure that they met a deadline or key target.

Set clear vision and values

The vision sets out the direction of the organization; the values are shown through the actions taken by management and create the behavioural norms by which team members live daily.

Give employees something to believe in.

Listen actively

The first step in any respect building exercise is to listen.

Whether it’s in a one-on-one meeting or a feedback session, listen intently, so they’ll know you’re receiving their feedback.

Take action immediately

It’s important not to wait until your next staff meeting to thank someone for a job well done.

If you see a member of your team going above and beyond, don’t let it pass by without a word.

Encourage collaboration

Allow your employees to work together towards accomplishing a common goal.

You can do this by organizing events and workshops or setting up mentoring programs.

Develop and reward leadership qualities

People move close to individuals who are leaders because they want to emulate their example.

Ensure that you make it possible for your team to develop their leadership skills and reward those who take the initiative to develop a project or program within your company.

Celebrate success together

By celebrating the successes of your team, you’re not only encouraging them to do better, but you’re also encouraging feelings of superiority in each employee.

From this, comes a sense of ownership towards their work and a sense of commitment to seeing it through to success.

The role of employees in developing a culture of appreciation

To foster a culture of appreciation, employees must create the circumstances which enable appreciation to flourish.

The following are some activities employees can undertake to create a culture of appreciation:

Employees can increase appreciation by bringing to their manager’s attention how their co-workers are going above and beyond their contractual duties.

This will help managers to recognize the efforts and achievements of these individuals formally.

As part of their daily duties, employees can identify problems that inhibit the effective operation of the organization and suggest plans of action to solve them.

This will make it easier for managers to see how they can go the extra mile for their employees when dealing with these concerns.

Employees can develop a culture of appreciation by showing due appreciation to one another.

The link between employee appreciation and loyalty

66% of employees say they would likely leave their job if they didn’t feel appreciated, according to a study by Office Team.

Another 69% said they would work harder if they felt their efforts were better appreciated.

There’s no doubt that people are the most integral part of any business.

They have the power to propel your business to achieve its goals and objectives; or to demolish it with negative work performance and attitude.

Establishing a culture where employees feel appreciated not only leads to higher levels of morale, lower attrition rates, improved staff retention, and enhances their quality of work-life, but it also boosts productivity, stimulates sales, and increases customer satisfaction.

In contrast, when employees feel unappreciated or disrespected, they’re likely to become disengaged; morale will decline, and their productivity will plummet.

How to develop an appreciation culture within your organization

A culture of appreciation occurs when people in an organization feel valued and recognized for their contributions, as well as feel encouraged to acknowledge the contributions of others.

Without this culture, employees will feel unappreciated and unmotivated. Without employees who feel appreciated, the organization cannot function cohesively.

So, how can you develop this profound appreciation culture within your organizations?

Give feedback

Feedback is one of the most important things needed at work.

It reinforces the behaviour you want to see continue in your staff and allows your team to grow and develop.

43% of highly engaged employees receive feedback weekly or more.

Give recognition in public

The reason public recognition is so powerful is that it creates the opportunity for high standard employees to be noticed by the entire organization.

Also, it creates an opportunity for others within the organization to see tangible examples of splendid work.

Be consistent and patient

Nobody will work hard for an organization unless they feel that their efforts and time will be appreciated.

The appreciation culture cannot be built overnight, but with consistency and patience, it will start to resonate within the organization.

Acknowledge employees’ efforts

The easiest way to create a culture of appreciation within your organization is to start by developing a genuine appreciation for the people who make up your team.

Take the time to understand what makes them tick, and you’ll soon learn more about how you can influence their performance and, ultimately, their life at work.

Encourage employee-manager interaction

Create a culture of employees who aren’t afraid to speak and managers who aren’t too busy to listen.

Employees spend the majority of their day at work. They don’t need to feel like a cog in the machine, and a manager who embodies an appreciation culture will help them see how impactful their efforts are.

Companies with high employee engagement are 22% more profitable.

Ask for feedback

A weekly email newsletter, where employees can share their suggestions on new ideas or features, is another great way to show your appreciation.

Conclusion

It is very easy to get your employees feeling appreciated, especially if you’re doing it consistently.

A simple “thank you” for a job well done, a sincere word of praise, and recognition when they go above and beyond the call of duty are all great ways to get this started.

The challenge for many leaders is ensuring that their culture of appreciation is sustainable.

The easiest way to do this is to ensure that it’s embedded in the DNA of your organization.

Should Your Organization Develop a Culture of Appreciation? Here’s What You Need to Know