Why your rewards strategy needs appreciation and recognition
Employee motivation is at the heart of every successful organisation.
While recognition and appreciation are often used interchangeably, they serve distinct roles in fostering a strong workplace culture.
Understanding the difference – and ensuring your strategy includes both – can have a transformative effect on employee engagement, retention and overall workplace morale.
With Employee Appreciation Day coming up on 7th March, now is the perfect time to explore how recognition and appreciation work together to create a thriving workforce.
Power of recognition and appreciation
Recognition is about acknowledging achievements, while appreciation is about valuing individuals for who they are.
Together, they drive motivation, retention, and purpose within an organisation.
People thrive on recognition and rewards – they reinforce a sense of purpose and inspire continued effort.
Data from BI WORLDWIDE shows that employees who have been told they make a difference at work within the past month are twice as likely to feel inspired, twice more likely to demonstrate commitment, and twice more likely to increase their effort.
Fostering a culture that integrates both recognition and appreciation helps combat disengagement, preventing quiet quitting.
Employees who receive regular appreciation are more likely to embrace innovation, take smart risks, and actively contribute to a positive work environment.
Improved retention and culture
A strong culture of recognition and appreciation also improves retention.
By embedding a culture where employees feel both recognised for their contributions and appreciated for their unique qualities, businesses can reduce attrition and attract top talent.
A well-structured programme also reinforces company values, aligning behaviours with organisational goals.
A LinkedIn study of 10,000 professionals revealed that 68% of workers in the UK, France, Germany, and Ireland prefer to work for companies that reflect their personal values.
Why you need both
The Harvard Business Review puts it simply: “Recognition is about what people do; appreciation is about who they are.”
Recognition is typically linked to accomplishments – whether it’s hitting a target, completing a project, or achieving a milestone.
It often comes in the form of formal rewards such as bonuses, promotions, or performance-based incentives.
While recognition is essential, it focuses on past actions and can sometimes be limited to a select few high achievers.
Appreciation, on the other hand, is about valuing individuals regardless of their achievements.
It is personal, inclusive, and helps to create a workplace culture where employees feel seen and valued every day.
From a simple “thank you” to acknowledging someone’s positive attitude, appreciation fosters a sense of belonging and psychological safety within teams.
Without appreciation, recognition can feel transactional.
Without recognition, appreciation can lack the motivational push employees need to reach their full potential.
A truly effective engagement strategy embraces both.
Creating a culture of recognition and appreciation
With the right initiatives in place, businesses can cultivate a thriving culture where employees feel consistently valued.
Here are some effective ways to integrate appreciation and recognition into the workplace:
- Everyday appreciation: Appreciation doesn’t require grand gestures. Instead, small, consistent actions create a lasting impact. Encouraging peer-to-peer appreciation, sending personalised thank-you messages, and celebrating employees for their unique qualities can make a huge difference.
- Formal recognition programmes: For achievements that go above and beyond, structured recognition programmes help reinforce a culture of excellence. Programmes such as ‘Manager Discretionary’ and ‘Nomination-Based Recognition’ ensure that outstanding contributions don’t go unnoticed.
- Manager discretionary recognition: Managers reward employees who demonstrate exceptional performance, initiative, or dedication.
- Peer nominations: Employees nominate colleagues who have made a significant impact, ensuring inclusivity in the recognition process.
- Performance incentives and league tables: These tools can also boost motivation, providing clear goals and rewarding employees who consistently exceed expectations.
- Celebrating milestones and life events: Recognising employee milestones, from work anniversaries to personal achievements like birthdays, promotions, or new homes, strengthens bonds within the organisation.
- Leveraging customer feedback: Instead of focusing solely on issues flagged in customer satisfaction surveys, organisations should actively share and celebrate positive comments, using them as a tool to boost morale and motivation.
Building a thriving workplace
Recognition and appreciation are both essential components of a successful employee engagement strategy.
While recognition drives performance and achievement, appreciation builds trust, inclusivity, and a culture where employees genuinely feel valued.
Employee Appreciation Day on 7th March presents a perfect opportunity to amplify appreciation efforts – from company-wide thank-you messages to team celebrations, food treats, and early finishes.
However, organisations should embed both elements into daily operations, creating a motivated, loyal, and high-performing workforce that thrives year-round.
Workplace culture can make or break retention, so it’s crucial that employees feel valued for both their contributions and their unique qualities.
Supplied by REBA Associate Member, BI WORLDWIDE
BI WORLDWIDE is a global engagement agency delivering measurable results for clients through inspirational employee and channel reward and recognition solutions.
