04 Sep 2025

The power of everyday gratitude in shaping a happy workplace

For employees to feel a deeper sense of belonging to an organisation, they need to feel appreciated for what they do and who they are. It’s about give and take.

The simplest gestures often carry the most weight, and this is no different in corporate and business settings. With employee expectations often shifting, genuine gratitude has emerged as an effective way to shape your workplace culture and drive employee engagement. And yet, it remains one of the most underutilised parts of the modern leader’s toolbox.

We often think of recognition as something we receive as a way to reward hard work or celebrate successes and milestones. But what kind of impact does expressing gratitude have on the giver? And how does adding that personal touch not only benefit the recipient, but also the person who is showing their appreciation?

The unsung hero of engagement

We’re all familiar with the feeling of being recognised. But what’s less discussed is giving recognition and how it can be just as impactful, especially when it’s authentic. Employees who regularly express gratitude report higher levels of happiness, pride and connection, according to research by BI WORLDWIDE.

And these feelings aren't just one-off moments, a study by Mayo Clinic Health System shows how expressing gratitude can improve sleep, reduce anxiety, and even enhance immune function. In high-pressure work environments, it also helps to regulate stress responses, ultimately making teams more resilient and collaborative under pressure.

Building culture from the inside out

Workplace culture isn’t defined by perks or policies, those with a true understanding of culture know that it’s shaped by the everyday interactions that make people feel valued, connected, and inspired.

For employees to feel a deeper sense of belonging and purpose to an organisation, they need to feel appreciated for not just what they do, but who they are.

Those who regularly experience and express gratitude at work are more likely to feel connected to one another and actively contribute to a culture that feels inclusive and energising.

Recognition and appreciation are inherently contagious, leading to a ripple effect. It’s easy to imagine that when one person takes the time to acknowledge a colleague, it often inspires others to do the same. This creates a cycle of positivity, where appreciation becomes embedded into daily work life, and isn’t just a forced, top-down initiative.

From transactional to transformational

While traditional recognition, such as annual reviews or milestone celebrations, plays a key role in acknowledging achievements, its impact is amplified when paired with genuine ongoing gratitude.

When practiced regularly, authentic gratitude can help to build trust, strengthen inclusion, and deepen the connection between peers and managers.

Recognition platforms can help facilitate these small, consistent gestures, like a quick thank you or a thoughtful note, ensuring they’re visible, valued, and easy to share.

Making gratitude a strategic priority

So how can organisations use the power of gratitude to drive engagement and performance? Here are four evidence-based strategies:

Lead by example: Gratitude starts at the top. When leaders show appreciation (both publicly and privately) it sets the tone for the entire organisation. You should encourage managers to make gratitude a daily habit, not just a performance tool.
Make it easy and accessible: Equip employees with simple tools to recognise one another. Whether it’s a digital thank-you wall, peer-to-peer shoutouts, or manager-led awards, the key is to remove friction and make gratitude part of the flow of work.
Celebrate the givers, not just the receivers: Recognition shouldn’t be a one-way street, you should also celebrate those who consistently uplift others. This reinforces the value of generosity and encourages a culture where appreciation is everyone’s responsibility.
Measure what matters: Track not just how often recognition is given, but how it’s received and how it impacts engagement. Use this data to refine your strategy and ensure it aligns with your broader cultural goals.

Gratitude is good business

The business case for gratitude is clear. Employees who feel valued are more engaged, more loyal, and more likely to go the extra mile. They’re also more resilient in the face of change, which is a critical skill to have in the fast-moving world of business.

But perhaps the most compelling reason to invest in gratitude is that it creates a workplace that people are genuinely proud to be a part of, where they feel supported and inspired to do their best work, day in, day out.

In a competitive talent market, that’s not just a nice-to-have, it should be a fundamental part of your retention strategy.

As the world of work changes, it’s important that one thing remains a constant. And that is not overlooking the power of a simple ‘thank you’. It could just be the most effective leadership tool that you have.