Gratitude is not just polite, it is powerful. Studies have shown that gratitude plays a significant role in an individual’s well-being. Forbes notes, “The more frequently we give and practice appreciation, the more it becomes a habit and way of living.” Psychology found that gratitude is the most accurate predictor of job satisfaction.
As an employer, you have a unique opportunity to show gratitude towards your employees. Not only is this an excellent way to show leadership, there are also many reasons why thanking your employees more is good for your business.
Happy Employees = Better Work
People want to feel valued at their job, and appreciation brings motivation, encouragement, and satisfaction. Showing appreciation to your employees builds trust, keeps their morale high, and motivates them to continue to work hard. A collection of studies showed that employees who believe that their workplace values their contribution and cares about their well-being have higher rates of job satisfaction, positive mood. These employees also have better commitment, higher performance, and lessened withdrawal behavior. Employees who feel appreciated are also more likely to be engaged in their work. A study done by Gallup showed that highly engaged workplaces saw 41% lower absenteeism.
Happy Employees = Less Turnover
It may go without saying, but employees who feel appreciated at work are more likely to stay. 79% of employees leave because they don’t feel appreciated. Retaining employees saves you more money than you may think. According to Smarp, “It costs businesses $4,129 on average to hire new talent, and around $986 to onboard the new hire. That means you lose over $5,000 each time an employee walks out the door, not to mention the unquantifiable cost of losing an experienced employee!” Not only does it save you money, but retaining employees saves you valuable time that would otherwise be invested in continually training new workers.
Happy Employees = Better Sales
Employees who feel appreciated are more engaged in their work, and engaged employees have better customer service. According to Smarp, Businesses with high employee engagement are 21% more profitable. Forbes listed a long term study that showed that businesses who showed appreciation to their employees grew 682 percent in revenue.
Want to learn more about the power of appreciation? Check out this Ted Talk by Mike Robbins.