What is Employee Appreciation: Definition, Types, Importance & Ideas

Employees are the driving force behind every milestone a company reaches. While competitive pay and good benefits attract talent, they don’t guarantee loyalty. What often makes the difference is how valued employees feel once they’re part of the team. A well-structured approach to appreciation can turn occasional praise into a consistent experience that builds trust and loyalty.

That’s where employee appreciation programs come in. These initiatives go beyond generic thank-you notes or annual awards. They are intentional, ongoing efforts to recognize contributions, celebrate wins, and show appreciation to employees in ways that matter to them.

In this guide, we’ll explore what employee appreciation really means, the different types of employee appreciation, and why it plays a key role in retention and morale. You’ll also discover practical ideas on how to appreciate employees meaningfully and tips to design effective employee appreciation programs that fit your culture.

What is employee appreciation? 

Employee appreciation is the act of recognizing employees and rewarding them for their contributions to the workplace. Instead of focusing only on their performance, it celebrates their worth as a member of the team and as human beings. It is celebrated on the first Friday of March.

Recognition vs appreciation: What’s the difference?

While the two often go hand in hand, recognition and appreciation aren’t the same thing. Recognition usually highlights specific actions or results—like hitting targets or completing a big project. It’s often tied to performance and can be public or formal.

Appreciation, on the other hand, is more personal. It’s about valuing someone for who they are, not just what they do. A quick “thank you” for always being reliable or a note for being a positive influence—that’s appreciation in action.

A strong reward system balances both. Recognition fuels achievement, while appreciation strengthens relationships. Together, they help create a workplace where people feel truly valued.

Why is employee appreciation important: Stats to justify 

Employee recognition has always been a fundamental aspect of effective management. However, as the competition for talent intensifies, the methods organizations use to demonstrate their appreciation for employees have become increasingly crucial. 

1. Recruiting 

• According to SHRM, 56% of HR leaders reported that employee recognition or appreciation programs help them recruit top talent. With enhanced employee satisfaction and experience, employees are prone to serve as employer brand ambassadors. 
• People want to associate with employers that recognize and appreciate their employees—it’s one of 10 top employer traits they look for. They look for organizations that are honest and have integrity. 

2. Retention 

• Employee appreciation sees improved retention rates and lower turnover. In fact, 70% of HR professionals said that employee recognition helps with retention. 
• Recognizing and appreciating employees can significantly enhance their loyalty and reduce turnover rates. 
• For 55% of employees, lack of recognition was the top culprit in driving their decision of switching jobs. Even more telling: 69% would have stayed if their employers offered more rewards and recognition. 
• 53% of employees said feeling more appreciation from their immediate boss would help them stay longer at their company. 

3. Productivity 

• According to a survey from HR services firm Alight, appreciated employees were 7x more likely to say they were engaged at work than employees who were not appreciated. 
• 56% of employees who felt belongingness at their company had a higher level of overall job performance. 
• According to a report from Oxford University, happier workers are 13% more productive at work. 
• 84% of HR professionals said employee appreciation had a positive impact on employee engagement. 

4. Work relationships 

• 87% said that employee appreciation programs improved workplace relationships and improve company culture. 
• 41% of employees want more appreciation from their immediate co-workers. 

5. Management 

• Gallup says that managers’ ability to inspire team members is one of the top leadership skills that drive high-performing teams. This ability includes not only sharing the vision and mission but also recognizing and appreciating employees for exceptional efforts. 
• Managers themselves consider appreciation as a key factor in their own happiness. 83% of senior managers considered appreciation critical to their work satisfaction. 
• Recognition and appreciation also correlate with a team’s sense of meaning. The same study from Gallup found that 74% of U.S. employees who said their teams receive praise agreed that appreciation made them feel that their tasks were valuable and useful. 

6. Employee trust and morale 

• According to Netsuite, nearly one-third of a worker’s desire to stay with an organization is the result of trusting their boss. 
• The same study says, 78% of employees believe that how a company treats its employees is one of the best indicators of its trustworthiness. 
• Two-thirds of those on “adequately praised teams,” Gallup mentions, strongly agreed they trusted their colleagues. 
• According to 82% of HR leaders, employee appreciation boosts employee happiness. These programs also elevate organizational culture (86%) and employee experience (89%). 

It’s then highly unsurprising that the list of industries regardless of their core potency, who have been enamored by the importance of employee appreciation is endless. 

Types of employee appreciation

Though employee appreciation can take many forms—from instantaneous to planned out programs—it can be broadly divided into three main categories. 

1. Micro appreciation 

Micro appreciation, known as day-to-day appreciation, is a frequent and ongoing appreciation. It generally takes a simple form of sending handwritten notes, giving cards, putting wishes on bulletin boards, or anything that can help you appreciate employees quickly and easily.

A simple thank you note can make a staff member feel valued and appreciated on a daily basis. 

Though less pompous, micro appreciation is best suited to support organizational values frequently and make employees feel valued without shelling out a grand level of time and resources. 

2. Informal appreciation 

Informal appreciation, on the other hand, refers to spontaneous and personal expressions of gratitude and recognition from colleagues and supervisors. This can include verbal thank-yous, handwritten notes, and small gifts.

Informal appreciation is more immediate and can be given at any time to acknowledge everyday efforts and accomplishments. Both formal and informal appreciation are essential in creating a balanced recognition strategy that makes employees feel appreciated and valued. 

3. Formal appreciation 

Formal appreciation refers to structured recognition programs and rewards that are typically implemented by management or HR departments. These programs may include employee of the month/quarter/year awards, bonuses, and promotions.

Formal appreciation is often part of a larger employee appreciation program and is designed to recognize employees for their significant achievements and contributions in a systematic way. 

4. Monetary and non-monetary appreciation 

Monetary appreciation refers to rewards that have a financial value, such as bonuses, raises, and gift cards. These types of rewards are tangible and can provide immediate gratification to employees. Monetary appreciation is often used to recognize exceptional performance, significant achievements, or milestones. 

Non-monetary appreciation, on the other hand, refers to rewards that do not have a direct financial value, such as public recognition, additional time off, and opportunities for career growth and development.

Non-monetary appreciation can be equally powerful in making employees feel valued and appreciated. It caters to the intrinsic motivations of employees, such as the desire for recognition, personal growth, and a sense of belonging.  

Employees appreciation strategies 

For appreciation is a culture and thereby a year-long activity, the care must be taken that it doesn’t cost you a leg and an arm. At the same time, your appreciation endeavors shouldn’t miss their innate ability to overwhelm and delight the employees.  

1. Small, simple yet powerful gestures 

Low-cost, high-impact ways to show employee appreciation are perfectly capable of appreciating employees. 

➼ Say thanks more often: A plethora of research screams aloud how appreciation makes people feel happy and worthy. The overall settlement of your appreciation strategy, thus, should hinge upon finding ways to say thank you to your employees more often. 

Give sincere compliments to show gratitude when the opportunity arrives. More than a policy, it should be a habit. It’s, then, unsurprising that three-quarters of professionals said a simple “thank you” is all it takes to make them feel recognized. 

➼ Establish a company thanks feed: Whatever may be your way of announcing things internally, whether it’s a software tool, or a detailed email chain, ensure that you are establishing a company thanks feed as a vital part of your cadence. Soon it will become the bedrock of your appreciation and recognition culture. 

➼ Hand out simple certificates: If special achievement has been there in the kitty of an employee if he has “really” displayed the vigor to go beyond the call of duty and ignored the ticking clock, don’t shy away from handing out certificates. 

Of course, you don’t want to bequeath certificates at the drop of a hat. But if done in moderation, certificates can do wonders in boosting employees’ feelings of pride and satisfaction. 

Note that certificates aren’t just good gestures. By staying on employees’ desks or walls, they can become a visible and enduring part of your appreciation drive. Think about WALL Of FAME. 

2. Tactical time-outs 

One of the biggest challenges today is the lack of a good work-life balance, mainly due to not having enough time. Giving your employees time to relax and enjoy their lives can make a big difference in their happiness and well-being. 

➼ Extended breaks: Research vehemently suggests that extra screen breaks or movement breaks during the day can even improve productivity. The reason for it is amply clear. By engaging in tasks different from official ones, strategic breaks break the monotonality of the employees’ minds. 

➼ Power naps: When employees are working round-the-clock, grinding day in day out, they will hit the nadir where the brain shuts down, and even keeping eyes open becomes a battle. 

To keep up the momentum of productivity, it’s ideal that they should rest for a few minutes in a recreation room. Experts believe that 10 to 20 minutes of a power nap is enough for a quick and effective jolt of alertness. 

3. Team appreciation 

Like all the business leaders, you are as good as your team. The need to tap on the back of the entire team is as important as making an individual employee a cynosure. 

➼ Team lunches and drinks: This is a great way to achieve two things: first, they allow employees to step away from the usual routine of the office. Second, these outings help build teamwork by breaking the ice and encouraging friendships among colleagues. 

➼ Create an annual yearbook: While it may seem old-fashioned, creating an annual yearbook is a powerful way to show employee appreciation. It highlights their hard work, achievements, and creative ideas, making sure their contributions are remembered and valued. This thoughtful gesture always resonates emotionally with employees. 

Pick the best picture of your employees, craft a unique line to write about them, and enclose it within their sterling achievements. It’s an aesthetically beautiful and pleasantly durable branded keepsake. 

➼ Mention teams on your ‘About Us’ page: As traditional top-down leadership fades, a more nurturing approach is becoming the norm. Giving your teams a space on your website can greatly enhance feelings of appreciation. Using creative design tools can make this a low-cost initiative worth trying, especially for special occasions like Employee Appreciation Day. 

➼ Have a team trophy: Can there be a better appreciation for a team than a shiny trophy with the team’s name engraved on it? Allow employees to take it home or display it on their office desks. Empuls make it easier for you to appreciate your employees through value badges for instant recognition.  

4. Get personal 

Two-thirds of employees are more likely to value two tickets to a concert of their choice versus getting three times the value of those tickets added to their paychecks over a year. The thoughtful gesture of personalized gifts reflect how much you know about them and the positive impact they have on the organization. 

➼ Personalized gifts and rewards: Personalization is not about wrapping the name of the employee around a gift. It’s a passé. What personalization means in a spirit and letter is, the gift should resonate with the employees thoroughly. 
 
Find out which current musician they like and hand them over tickets of his show. Find out their hobbies and give them vouchers for those hobby classes. Remember: if employee appreciation gifts aren’t aspirational, they are mere accessories. 

➼ Ask for the feedback: You won't find an easier way to make your employees feel valued than by simply asking for their opinions. Just knowing that the company cares about what they think can create a positive feeling among them. 

The best way to do it, as Empuls allows, is to run a survey. Along with the heightened sense of importance among employees, it hands over the pulse of what employees think and want. 

5. Get professional 

Research by EdAssist and the University of Phoenix found that 74% of the employees believe that assisting in their own career development is a responsibility of their company or managers. 

Indeed, providing employees with cutting-edge professional development opportunities sends a clear call that you genuinely care about their careers and that you believe in their capacity. 

➼ Provide training and learning opportunities: Training employees in the skills they are passionate about is a classic example of a win-win scenario. Apart from loving and respecting you for taking them seriously, training will upskill them and improve their ability to perform their tasks with added mastery and perfection—resulting in overall operational efficiency. 

➼ Meeting and pitching ideas to leadership: Getting a chance to rub shoulders with the brains and hearts of the company is an uncommon and happy occurrence in an employee's life. However, you can further amp it up by taking a leaf out of the TV series Dragon’s Den and allowing employees to pitch their ideas and vision in front of top leadership. 

➼ Role shadowing opportunities: It’s not uncommon to see the glaring gap between how employees are and what their respective job roles demand from them. A simple way to illuminate what the job actually tastes like is to provide role shadowing opportunities. It will deepen their understanding and knowledge of the roles they might be interested in. 

Remember that it’s demanding on the person who is being shadowed. It’s advisable to limit the time spent to one day per quarter. 

➼ Write a LinkedIn recommendation: It may sound counterproductive, but writing a great LinkedIn recommendation helps you retain employees. At its core, it shows that you trust and believe the skills of your employees, not emotionally but rationally, and are genuinely interested in their career growth. 

6. Go public 

To keep talented employees, it's important to create an environment where they feel valued and have a sense of purpose where they can find meaning in their work. 

Maslow's Theory Of Hierarchy hints at making the appreciation public and letting others know why a particular employee is appreciated. 

➼ Social media shoutouts: The simplest, cost-effective, interactive, and memorable method of showering a public appreciation on employees is to give them a shout-out on various social media feeds. The congratulatory comments are bound to trigger a feel-good sensation for the employee in question. 

➼ Mentions in your periodic newsletters or magazines: Another way to make appreciation delightfully public is a round-up in your customer newsletter or magazines. 

➼ Publish it on the company website: Making appreciation go live on a website doesn’t just make it public. It makes it enormously satisfactory for employees since the company website is the first official touch base for most people.  

7. Go big 

Since showing appreciation can help build your brand and attract top talent, it's a good idea to think big about your appreciation efforts. While these initiatives may cost a bit more than usual, they are definitely worth the investment.  

➼ Once-in-life experiences: Mere goods are not good enough. Being ubiquitous, tried, and tested, they are forgettable. A great experience generates the yet-unfelt feeling and therefore becomes unforgettable. 

You can think of gift vouchers for skydiving, bungee jumping, hot air balloon rides, a weekend getaway to a quaint place, or even a car race. A time spent in a spa or yoga retreat is a great way to heal the souls of your employees. 

➼ Annual holiday: Why not treat your entire workforce to a holiday away in the lap of nature? It can be a great idea for employees who have been loyal to you and who have spent a significant amount of time with you. Remember: annual leave (43%) is the most beloved reward of employees. 

Implementing a employee appreciation program

Creating an employee appreciation program that resonates with your employees requires thoughtful planning and execution. Here are the key steps to effectively implement an employee appreciation program that will make a real difference:

1. Setting clear objectives

Before launching any program, it’s important to define what you want to achieve. Are you aiming to boost morale, reduce turnover, or increase productivity? Clear objectives will guide the design of your program and help you measure its success.

For example, if your goal is to improve employee retention, your program might focus on long-term rewards and recognition.

2. Involving leadership

For an appreciation program to succeed, it needs strong support from leadership. Leaders should not only endorse the program but also actively participate in it.

When employees see that appreciation is valued at all levels of the organization, they are more likely to engage with the program themselves. Leadership involvement also helps to set the tone and model the desired behaviors across the company.

3. Creating a recognition culture

Building a culture of recognition means making appreciation a part of the daily routine, rather than an occasional event. This involves integrating recognition into regular meetings, performance reviews, and even casual conversations.

Encouraging all employees—not just managers—to participate in the program helps to create a culture where appreciation is a natural and ongoing part of the workplace.

4. Communicating the program

Once the program is ready to launch, clear communication is key to its success. Make sure all employees understand how the program works, what kinds of behaviors and achievements will be recognized, and how they can participate.

Regular reminders and updates will keep the program top of mind and encourage ongoing engagement.

5. Gathering feedback and making adjustments

No program is perfect from the start. Regularly collecting feedback from employees will help you understand what’s working and what needs improvement.

This could be done through surveys, focus groups, or informal check-ins. Be open to making adjustments based on this feedback to ensure the program continues to meet the needs of your employees and the goals of your organization.

How to measure the impact of your employee appreciation program efforts? 

Creating and implementing a employee appreciation program is just the beginning. To ensure its effectiveness and make continuous improvements, it’s essential to measure the impact of the program regularly.

Here’s how you can assess the success of your employee appreciation efforts:

1. Employee feedback

One of the most direct ways to gauge the success of your appreciation program is through employee feedback. Regularly conduct surveys with specific, actionable questions, such as:

• On a scale of 1 to 10, how appreciated do you feel at work?
• Which aspect of the appreciation program do you find most meaningful?
• What changes would you like to see in the recognition process?

Use a Net Promoter Score (NPS) style question like, "How likely are you to recommend working here to a friend?" to measure overall satisfaction. Analyze the feedback to identify trends and areas for improvement.

2. Retention and engagement metrics

Tracking retention and engagement is crucial for understanding the program's impact. Use the following formulas to quantify these aspects:

• Retention rate: (Number of employees at the start of the period/Number of employees at the end of the period​)×100
• Employee engagement score: Conduct engagement surveys and calculate the average score across key questions related to morale, motivation, and job satisfaction.

Compare these metrics before and after the implementation of the appreciation program. A higher retention rate and improved engagement scores typically indicate a successful program.

3. Participation rates

Monitor the participation rates in your appreciation programs. Key metrics to track include:

• Percentage of employees recognized: (Total number of employees/Number of employees recognized​)×100
• Participation in recognition events: Track attendance or involvement in appreciation events or activities.

Low participation rates might signal that the program needs better communication or more appealing rewards. High participation rates suggest that the program is well-received and valued by employees.

4. Observing behavioral changes

Qualitative observation can also provide insights into the program's success. Ask yourself or your managers the following questions:

• Are employees more willing to take on new projects?
• Is there a noticeable improvement in teamwork and collaboration?
• Do you observe an overall positive shift in workplace culture?

Additionally, consider implementing 360-degree feedback mechanisms where peers and managers can report observed changes in behavior related to engagement and appreciation.

5. Comparing before and after

To clearly see the impact of the appreciation program, compare key metrics from before and after its implementation. For example:

• Engagement scores: Conduct engagement surveys at regular intervals and compare the results to see if there is a noticeable improvement.
• Productivity metrics: Track productivity levels using output per employee or project completion rates.
• Customer satisfaction: Measure customer satisfaction scores, as happy employees often lead to better customer experiences.

Elevate your employee appreciation program with Empuls

With Empuls, you can go beyond traditional recognition and harness the power of AI to create timely, inclusive, and impactful recognition experiences that drive real results. Celebrate every win with multiple award types, automated workflows, and fully customizable rewards—all tailored to your unique program goals.

Why choose Empuls?

• AI-powered recognition: Boost employee engagement and retention with recognition that’s both timely and meaningful.
• Custom workflows: Automate your appreciation programs with workflows that include nominators, jury panels, and special event triggers.
• Branded experience: Personalize the platform with your company’s branding and custom certificates.
• Flexible rewards: Offer instant redemption and manage budgets effortlessly with a built-in rewards store.

Examples of successful employee appreciation programs

To further illustrate how effective a well-implemented employee appreciation program can be, let’s look at a couple of examples from companies that have successfully built and sustained strong appreciation cultures.

1. Patagonia

Patagonia, the renowned outdoor clothing and gear company, has long been celebrated for its commitment to not only environmental sustainability but also to its employees. The company’s appreciation efforts are deeply ingrained in its culture and reflect its broader mission of caring for people and the planet.

One of the standout features of Patagonia’s approach is its “Let My People Go Surfing” policy. This unique benefit allows employees to take breaks during the workday to surf or engage in other outdoor activities whenever the conditions are right.
This policy isn’t just a perk; it aligns with the company’s belief that a strong connection to nature enhances creativity, well-being, and job satisfaction. By allowing employees this flexibility, Patagonia demonstrates that it values their work-life balance and personal passions, which, in turn, fosters a deep sense of loyalty and commitment to the company.

In addition to this, Patagonia offers generous benefits that go beyond the standard. The company provides on-site childcare, which alleviates stress for working parents and shows a commitment to supporting families. Patagonia also offers flexible working hours, enabling employees to balance their personal and professional lives more effectively.

Furthermore, the company encourages and supports its employees’ passions for activism and environmental stewardship by offering paid time off for volunteering with environmental organizations.

These efforts have created a workplace culture where employees feel deeply connected to the company’s mission and values. This connection has led to high levels of employee engagement, low turnover rates, and a strong sense of community within the organization.

Patagonia’s approach to staff appreciation is a testament to how aligning company values with employee well-being can create a thriving workplace.

2. Southwest Airlines

Southwest Airlines is another excellent example of a company that has successfully embedded appreciation into its culture. Known for its customer service and strong employee relationships, Southwest has built a reputation as a company that truly values its employees, and this is reflected in its robust staff appreciation programs.

One of the key elements of Southwest’s approach is the "Winning Spirit" program. This formal recognition program is designed to acknowledge and reward employees who go above and beyond in their roles.

The program includes a variety of recognition opportunities, from peer-to-peer shoutouts to more formal awards for outstanding service. The emphasis is on recognizing both big and small contributions, which helps to foster a culture of continuous appreciation.

A standout feature of Southwest’s appreciation efforts is the “Heroes of the Heart” program. This annual tradition allows employees to nominate their peers who have made exceptional contributions to the company. The winners are not only celebrated with a surprise party attended by company leaders, but their achievements are also broadcast across the entire organization.

This public recognition not only boosts the morale of the individual employees but also reinforces the values of teamwork, dedication, and service that are central to Southwest’s success.

Southwest Airlines also emphasizes a culture of fun and connection, which is evident in their regular company-wide events and activities. These events, combined with the formal recognition programs, create an environment where employees feel valued and motivated to contribute their best.

The result of these appreciation efforts is a highly engaged workforce with a strong sense of loyalty to the company. Southwest consistently ranks high in employee satisfaction and is known for its low turnover rates, which are a direct result of its commitment to valuing and appreciating its employees.

3. Quixy

Quixy, an IT services company, transformed its employee recognition program by integrating Empuls with Microsoft Teams. Before this change, Quixy faced challenges with low employee engagement and the absence of an effective rewards system, which impacted morale and productivity.

By implementing Empuls, Quixy provided a centralized platform for recognizing high performers, sharing organizational updates, and gathering feedback, significantly improving employee experience.

The integration with Microsoft Teams made recognition even more seamless, allowing employees to give feedback, celebrate moments, and reward peers without leaving their workflow. Quixy's team could now engage in watercooler chats, recognize achievements, and participate in HR surveys directly within Teams. This improved collaboration and engagement across the organization.

With Empuls integrated into Microsoft Teams, employee participation increased significantly. The HR team's workload was reduced as all recognition activities were streamlined under one platform, making the program more efficient and accessible.

This example highlights how integrating a recognition tool within existing work platforms can boost engagement and create a seamless appreciation experience for employees.

4. Healthcare enterprise

A global digital healthcare enterprise revamped its staff appreciation program using Empuls to drive engagement and streamline recognition efforts. Previously, their rewards program was manual and inefficient, relying on multiple meetings, email follow-ups, and delays. By adopting Empuls, the company was able to automate its Rewards and Recognition (R&R) process, integrate it with existing tools like Slack and Zoho People, and create a more inclusive, timely recognition system.

The platform allowed employees to nominate their peers easily, aligning their contributions with core company values. This encouraged greater recognition and reinforced the behaviors that mattered most to the organization. Managers and employees were empowered to distribute awards and appreciation across divisions, helping to break down silos and foster collaboration.

Since implementing Empuls, the company achieved a 2x surge in employee engagement, with active participation rising from 38% to 76%. There was also a remarkable 380% increase in the distribution of awards and gift points within the first year.

The program made employees feel more valued and connected, fostering a deeper sense of purpose and belonging. This example highlights how a well-executed employee recognition program can significantly enhance engagement and create a thriving workplace culture.

Don’t forget: Appreciation is not an event, it’s a culture

Though it’s a must to celebrate Employee Appreciation Day, it’s imperative to understand that employee appreciation shouldn’t remain bound to one single day. It should emerge as a movement, not as a stand-alone event, and culminate finally into a vital company culture. 

The first step is to start thinking about creating your own employee appreciation program keeping in mind your overall business goals and employee philosophy. With countless creative ideas and methods to appreciate your employees memorably, a comprehensive employee recognition platform like Empuls can strengthen your will and action to appreciate your employees all year round. 

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