🚀 Introducing Perform! Simplify Performance Management For Your Small Business. Check It Out 👉

September 20, 2024

Employee Recognition: 8 Ways to Show Appreciation

illustration of three people walking with gifts and trophies

If a tree falls in the forest and no one is around to hear it, does it make a sound? And if an employee goes the extra mile but no one thanks them for it, will they stick around?

According to McKinsey, probably not. The top two reasons employees quit are because they don’t feel valued by their organizations or bosses. And with only 34% of companies providing a structured employee recognition program, it’s safe to say that most workers aren’t feeling the love.

But the reverse is also true. When employees feel like their contributions are valued, they’re more likely to experience feelings of belonging and connection, leading to increased engagement and retention.

So how can you show employees you care? These eight tips and employee recognition examples are the perfect place to start.

Are your performance reviews falling flat? Spark inspiring conversations that benefit the whole team with 25 sample questions for every type of review.

What is employee recognition?

Employee recognition is acknowledging a team member’s efforts, achievements, and contributions in the workplace. It involves highlighting and rewarding the behaviors that align with the organization's values and goals.

From verbal praise and public acknowledgment to awards, certificates, and promotions, an employee recognition program can take various forms. Even simple gestures like a thank you note can have a major impact on long-term employee fulfillment.

8 employee appreciation ideas that go beyond the warm and fuzzy

When you recognize and applaud an employee’s work, you create a supportive work environment that encourages people to reach for the stars. But in today’s world, meaningful recognition takes more than a pat on the back. You need an appreciation strategy that improves employee experience and work ethic, and boosts morale. 

Here are a few proven ways to praise your team:

1. Personalized thank you notes 

Go beyond a verbal “thank you” and take the time to write a thoughtful note. Whether you put pen to paper or send a digital e-card, it’s all about expressing gratitude for specific contributions or efforts. But if you want your note to be truly impactful, make it personal. 

Highlight a specific trait you admire about the employee, and share an example of a time their efforts made work better for the entire team. This personalized acknowledgment is a meaningful and motivating gesture that employees will remember.

“It’s so simple, but an unexpected email of recognition from the boss with the subject line ‘Thank you’ can go a really long way,” Danny Lohrfink, co-founder and chief product officer at Wealth, explains. “Think about the last time you received one of those emails—how did it make you feel? Pretty good, right? Don’t overthink this stuff. Sometimes the simple things can make all the difference.”  

Need some inspiration? Try out this sample thank you note:

Hello [Name]! I wanted to take a moment to express my sincere gratitude for your hard work and dedication. Your ability to [specific example of their valuable contribution] has not only helped us achieve our goals but has inspired those around you. We are fortunate to have someone as talented and reliable as you on our team. Keep up the great work!

2. LinkedIn endorsements

Shout-outs are a popular (and effective) form of recognition. But shout-outs everyone can see? Even better. Increase your employees' appreciation a step further by writing them a LinkedIn recommendation. 

Displayed on a user’s profile, LinkedIn recommendations are public praises everyone can see. And they have a major impact on a user’s social media clout and confidence. Take it from Valerie Lavska, now the CMO at Promodo. After a demanding marketing campaign, she noticed a LinkedIn recommendation from the client pop up on her profile.

“Unlike getting my name mentioned in a meeting, the recommendation was indefinite. It was, and remains, a public testament to my commitment to Promodo. Qualitatively, it built my confidence and appreciation for the company,” she recalls.

That’s why Lavska now encourages all bosses to go beyond one-time rewards to leverage the power of LinkedIn recommendations. By taking the time to leave a thoughtful recommendation for a job well done, you can give employees a boost of confidence and help them shine up their social media profile in one go.

Once employees start looking for the exit, it’s already too late. Show them you’re listening with a stay interview template focused on their needs and yours.

3. Peer-to-peer recognition program

Recognition isn’t a top-down endeavor – it should come from all directions.

That’s why it’s so important to create a peer-to-peer kudos system where employees are encouraged to compliment their coworkers.

Whether someone goes above and beyond on a client project or knocks it out of the park planning a company lunch, peer recognition systems give team members a space to show their appreciation and create the kind of working environment that is supportive and psychologically safe.

You can create a specific Slack channel for shoutouts, set up an in-office bulletin board, or make time for verbal shoutouts during staff meetings.

“We use an app called HeyTaco that is integrated into our Slack environment. Anyone on the team can reward a colleague with a virtual taco for a job well done,” notes Danielle Wiley, CEO of Sway Group LLC. “We have hashtags for each of our company values, and HeyTaco keeps a running leaderboard of tacos received for each value. The team has loved it, and it’s an affordable way to make sure hard work is recognized.”

4. Company-wide celebrations

The best part of a win? Celebrating it. Whether it’s a work anniversary, a busy birthday month, or an end-of-the-year party, big milestones call for big thanks. And one of the most fun ways to create a company culture that boosts employee morale is by celebrating all the wins – even the small ones.

By organizing events, parties, or gatherings to celebrate milestones, accomplishments, holidays or special occasions, you not only show appreciation for your employees but also facilitate team-building, making everyone feel like they're part of something special.

“Prioritize celebration,” says co-CEO of Catalyst Constellations, Shannon Lucas. “Many remote leaders fall into the trap of only communicating when there’s a problem or they need something. That can be demotivating for the team. Acknowledge the successes.”

Bonus points if it occurs during work hours and involves free food. 😉

A feedback-rich culture doesn’t happen overnight. Learn the five elements to account for when designing your employee feedback system.

5. Meaningful gifts

If you’re looking for a memorable way to thank an employee, go for a personalized gift.

“One of the most powerful gestures that any business can do for a great employee is to give a physical symbol of appreciation. This can take the form of a watch, a personalized plaque, or a gift card,” founder of WPBeginner Syed Balkhi explains. 

From a gift certificate to their favorite coffee shop to a nice piece of branded company swag, it’s all about gifting something meaningful that they’ll actually use. (Just make sure to steer clear of these laughably bad corporate gifts.)

“The key is to make sure that the employee knows that their hard work is being noticed and appreciated. This will make them feel valued and motivated to continue doing their best,” Balkhi continues.

And if you need more inspiration, take it from Online Optimism, a digital marketing agency with a stellar gifting package. Each year on their first-day-of-work anniversary, employees receive a special gift to commemorate their time with the company. From top-shelf liquor to an additional five PTO days on your fifth-year workiversary, these annual gifts give employees something to look forward to.

6. Relaxing wellness initiatives

Comprehensive mental and physical healthcare should be a part of every business’s benefits package. But when it comes time to reward employees for a job well done, consider opting for additional wellness perks.

That can look like implementing wellness initiatives such as yoga classes, meditation sessions, or health seminars to support employee well-being. But it can also look like booking a therapist for in-office chair massages or scheduling prepaid relaxation days at a local spa.

“We
offer a robust employee assistance program that provides actual live counseling completely free to our employees,” HR Director of Foam Supplies, Inc. Kerri Johnson notes. “On the more fun side, we started offering weekly rotating massage and chiropractic services onsite, free to our employees.”

When viewed in light of recent research on the calming and work-enhancing benefits of a 15-minute chair massage, booking built-in “me-time” for employees is a win-win.

Looking for ways to attract and retain top talent, but can’t afford large-scale pay raises? Revamp your compensation package with these five strategies.

7. Public recognition in meetings

Handwritten notes and thoughtful gifts are especially powerful when paired with public recognition.

By acknowledging employees' achievements in front of their peers during company meetings or gatherings, you don’t just make top performers feel proud. Public recognition is an effective form of positive reinforcement, modeling what quality work looks like and encouraging others to strive for that success. 

“It’s important to give kudos directly and then share recognition across the entire company, not only to give the individual employee the recognition they deserve but also to boost morale and share updates with the whole team,” David Vivero, co-founder of Amino Health explains. “We can only win as a team, so include the whole team.”

8. Employee empowerment

Another great way to reward your best employee without breaking the bank? Invite them to sit at the table when making big decisions or handling an important project.

By involving employees in decision-making and seeking their input and ideas for business improvements, you can make them feel valued. Just make sure that involvement is coupled with a longer-term plan for their future at the company.

“Giving someone the opportunity to participate in a valued project or to meet with a key client can be a reward, but only if it is seen as a signal of potential career advancement in the future,” business psychology professor Art Markman explains. “People like to get evidence that they are being groomed for future roles. So the chance to attend an important meeting has a benefit only if people believe that they are in contention for a step up the ladder.”

Recognition that really means something

Good work deserves to be rewarded as and when it happens. 

Rather than lumping all your recognition efforts into one employee appreciation day, recognize employees’ contributions in the day-to-day. Because a strong reward system not only boosts employee retention, it also makes a positive impact each and every workday.

When you’re ready to level up your employee engagement strategy, Breezy Perform can help you track goals and assign gold stars to all your top performers. From targeted feedback to one-on-ones, Perform helps you go beyond the wall of fame to recognize your employees for both their individual and shared wins.

Get every feature of Breezy Perform free for 14 days. Sign up now to learn more.