Why Showing Gratitude In The Workplace Benefits Your Business – 2024 Guide

Your employees are one of the most essential parts of your business and it is important to make sure they know it. They help in the day-to-day running of the company and help drive change, which can lead to the increased success of the business. Showing them the gratitude they deserve has numerous benefits across different aspects of your business, and here is why.

1. Motivates Employees

People like being praised – it is just a fundamental part of human nature. By showing gratitude at work, you are letting employees know they are making a difference. This, in turn, boosts morale and creates a good company culture that is essential for your business. It also creates some healthy competition if people are being rewarded for their efforts, then others will be encouraged to work harder too.

Furthermore, if employees know that their work is more likely to be recognized, for example, through a promotion, they have something to aim for and work for. But if they feel like they might be stuck doing the same thing forever, they may not feel the need to work as hard.

2. Retain Employees

When staff are part of good company culture, it will encourage them to stay, even during a major change like if you have to relocate to a new office. Keeping staff members is important in retaining the knowledge that they have built, which they can use to efficiently carry out tasks and train new employees. It costs time, money, and a lot of stress to hire new employees, so being able to keep your best staff members is vital for the general health of your company.

Some of the most common reasons that people leave jobs include the following:

• Better opportunities. So by showing gratitude by offering promotions, you can work to prevent this.
• Unsuitable job. If you want to keep the employee, you can show that their work has meant a lot to the company by offering to switch them to a new role or department.
• Negative company culture. Aim to create a cohesive team and discourage gossip.
• Physical work environment. Showing your gratitude by upgrading the office, especially for practical reasons. Perhaps some new desk chairs are needed.

There is some evidence to show that over 53% of ex-employees would have stayed if they had been shown a little more appreciation – so it is definitely not something to overlook.

3. Encourage New Hires

That said, hiring new employees has benefits for the company as well. As well as sometimes needing the extra manpower when you are expanding, new employees can also incite change and innovation that a business can sometimes be craving. Having a good reputation for treating staff members well by showing gratitude will encourage new people to apply for job positions that are available.

Otherwise, you will not be getting the kind of applicants that you will be looking for if current or old disgruntled staff members have been telling people that they do not feel appreciated by their employers.

4. Improve Productivity

When employees feel valued, it can give them the confidence and motivation to work a little harder. Staff will seek more recognition which means productivity and performance increase because even simple tasks that need doing can be done more efficiently and to a higher standard. This can, in turn, help propel your business forward because it has the momentum to reach greater heights, thanks to its hardworking employees.

5. Customer Retention

A correlation has been shown between happy staff and happy customers. If your employees are feeling appreciated, then they are more likely to be satisfied in their roles and will engage with their tasks properly. This has a particular effect when it comes to customer-facing jobs. Employees need to be interacting with customers in a polite, professional, and enthusiastic way; but if they aren’t bothered about their work, this will translate to customers. Nobody wants to be served by a grumpy individual.

Customers may also hear reports of how well a business treats its employees. If they read something or hear from someone that makes them believe that a company is mistreating their employees, they may stop using their services and/or products.

6. Employee Well Being

When employees are not feeling their best, they are not performing their best. If an individual is not getting the support they need at work, including feeling appreciated, their mental health can decline. This can lead to them taking more sick days or working slower, which lowers productivity and can affect the general running of your business.

An employee can be struggling in numerous ways including financially, personally, and physically. If an employee feels their income is not reflecting the work they are putting in, or if they are having trouble socializing within the team, then showing a little more gratitude could go a long way. Talk through a potential raise or a bonus scheme with them if appropriate, and actively include them in team discussions and projects to show them that you are grateful for their input and presence.

Ways Of Showing Gratitude

So now you may be wondering about some of the best ways to show how much you value your employees and the work they do. It has been shown that a larger act of gratitude has helped motivate employees for several weeks, and even smaller ones here and there can make a difference day-to-day. Here are some ideas on how you can make employees feel more appreciated:

• Bonuses
• Offering time off
• Company social event
• Have an employee of the month
• Discuss promotions, or the potential for one
• Even a simple “thank you” can go a long way

So now you know how showing gratitude in the workplace can benefit your business. As well as improving the well-being of employees, which in turn leads to increased motivation and productivity, you can also encourage new employees to apply for positions. Retaining current employees is likely to improve too, and customers will continue using your services if they know you are treating staff members well.