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Writer's pictureMorgan Hunter

Employee Recognition: Let Them Eat Cake

In this episode we explore the significance of expressing gratitude in the workplace. Morgan and Anil emphasize how a simple "thank you" can dramatically boost employee engagement and productivity. The discussion covers three main topics: the transformative power of appreciation, the disconnect between employees' need for feedback and existing feedback programs, and strategies for leaders to foster a culture of recognition. They highlight the importance of personalized and meaningful recognition over generic rewards, and they criticize complex, overly engineered recognition programs. These show notes include: 


 

"I want to be seen. That's all I need. It's great to get a little award or whatever, but I want people to say, 'I see you, Morgan, good work.'" 


Takeaways 

  1. Transformative power of 'thank you': Acknowledging employees can significantly increase engagement and productivity. 

  2. Disconnect in feedback: Recognition programs often fail because they do not meet employees' actual needs for feedback and appreciation. 

  3. Personalized recognition: Tailored, sincere recognition is more effective than generic rewards. 

  4. Cultural nuances: Leaders must understand and respect how different individuals prefer to be recognized. 

  5. Avoiding complex programs: Simple, consistent recognition is more impactful than complex, engineered programs. 

  6. Immediate feedback: Timely recognition prevents feelings of being undervalued and can improve employee retention. 

  7. Positive reinforcement: Regular, specific praise fosters a positive and motivated workplace culture. 


Research on The Power of "Thank You"  

While elaborate recognition programs can be effective, there's compelling evidence suggesting that simple, genuine expressions of appreciation, such as saying "thank you" and acknowledging an employee's contributions, are highly impactful. These gestures are not only cost-effective but are also closely aligned with psychological needs for esteem and belonging, as outlined in theories like Maslow's hierarchy of needs.  


  1. Increased Engagement and Productivity: According to a study by the Society for Human Resource Management (SHRM) and Globoforce, employee recognition programs, particularly those that are values-based, are shown to significantly impact employee engagement and productivity. However, the research also emphasizes the power of personal acknowledgment and appreciation, indicating that simple thank-yous can be as effective as more structured programs in boosting morale and engagement.  

  2. Retention and Loyalty: The Workforce Institute at Kronos highlights that recognition is a key factor in employee retention. A significant portion of employees report feeling more loyal to their company when their work is recognized and appreciated regularly, suggesting that frequent expressions of gratitude can reduce turnover rates.  

  3. Emotional and Psychological Effects: Psychological studies, such as those referencing the broaden-and-build theory by Barbara Fredrickson, suggest that positive emotions like feeling appreciated can widen an individual's thought-action repertoire. This, in turn, can lead to building lasting personal resources, like resilience and social bonds, which are beneficial for both individuals and organizations.  

  

The downside of overly elaborate employee recognition programs  

Implementing overly elaborate or generalized recognition programs without a foundation of genuine, personal appreciation can backfire. Employees are adept at discerning between perfunctory recognition and sincere appreciation. A Harvard Business Review article warns that if employees perceive recognition efforts as disingenuous or as a one-size-fits-all approach, it can lead to cynicism and decreased motivation.  


Recommendations for Employers  

  1. Integrate Regular, Personal Appreciation: Regularly express gratitude and appreciation in a personal and specific manner. Acknowledging specific contributions and efforts goes a long way in making employees feel valued.  

  2. Foster a Culture of Recognition: Encourage a culture where recognition and appreciation are practiced at all levels of the organization. Peer recognition can be as powerful as recognition from leadership.  

  3. Balance Formal and Informal Recognition: While structured recognition programs have their place, they should be balanced with informal gestures of appreciation to ensure authenticity in the recognition culture.  


Though elaborate employee recognition programs can positively impact workplace dynamics, research underscores the foundational importance of simple, genuine expressions of appreciation. Employers looking to improve morale, engagement, and retention would do well to prioritize these personal gestures of thanks alongside more structured recognition efforts. It’s a reminder that at the heart of effective employee recognition is the human need to feel seen and valued for one's contributions.  


Studies and Statistics  

  1. Employee Engagement: A study by Gallup found that employees who receive regular recognition and praise are more productive, engaged with their work, and loyal to their company. Furthermore, teams with managers who provide consistent acknowledgment show higher profitability.  

  2. Retention: According to a survey by the Society for Human Resource Management (SHRM), recognition programs tied to organizational values are seen to significantly impact retention and employee satisfaction. A culture of appreciation reduces turnover rates.  

  3. Performance: Research in the Journal of Personality and Social Psychology highlighted that participants who felt appreciated showed a higher productivity level by over 50% compared to those who did not receive the same level of appreciation. This illustrates the direct impact of gratitude on performance.  

  4. Simple Acknowledgment: A study published in the Academy of Management Journal revealed that leaders who expressed gratitude saw an increase in team productivity. Simply saying "thank you" to employees can encourage a more productive and cooperative team environment.  

  5. Cost-Effectiveness: Unlike elaborate recognition programs, expressing gratitude is cost-effective. Harvard Business Review notes that verbal appreciation and genuine thanks can sometimes have a more significant impact than financial incentives.  

 

Suggested Reading 

  1. "The Carrot Principle: How the Best Managers Use Recognition to Engage Their People, Retain Talent, and Accelerate Performance" by Adrian Gostick and Chester Elton: This book provides insights into the power of recognition and how managers can use it to improve employee performance and retention. 

  2. "Drive: The Surprising Truth About What Motivates Us" by Daniel H. Pink: While not solely focused on recognition, this book delves into the broader aspects of motivation and how intrinsic rewards like recognition can be powerful motivators. 

  3. "The Power of Thanks: How Social Recognition Empowers Employees and Creates a Best Place to Work" by Eric Mosley and Derek Irvine: This book explores the impact of social recognition and provides a framework for creating a culture of appreciation in the workplace. 

  4. "Make Their Day! Employee Recognition That Works" by Cindy Ventrice: A practical guide filled with real-world examples and actionable strategies for effective employee recognition. 

  5. "1001 Ways to Reward Employees" by Bob Nelson: A comprehensive list of creative and effective ways to recognize and reward employees, catering to various preferences and workplace cultures. 

  6. "The Truth About Employee Engagement" by Patrick Lencioni: Although focused on engagement, this book discusses the crucial role of recognition in making employees feel valued and motivated. 

  7. "Appreciation at Work: Strategies for Instant Impact" by Paul White and Gary Chapman: This book provides tools and techniques for recognizing and appreciating employees in ways that resonate with them individually. 

  8. "The Best Team Wins: Build Your Business Through Predictive Hiring, Top Talent, and Teamwork" by Adam Robinson: While primarily about hiring and teamwork, this book includes valuable insights into the role of recognition in building high-performing teams. 

 

Wrap up 

In conclusion, the power of a simple "thank you" cannot be overstated. Recognizing employees' efforts and contributions fosters a positive workplace culture, boosts engagement, and enhances productivity. By making recognition personal and consistent, leaders can bridge the gap between employees' needs and formal feedback programs. Moving away from overly complex recognition systems to a more straightforward approach can yield significant benefits. As Morgan Hunter and Anil Saxena discussed, it’s about creating a culture where employees feel seen and valued, ultimately driving better performance and stronger loyalty. Embrace the simplicity of gratitude and watch your team thrive. 


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