Building a Culture of Appreciation to Tap Employees’ Full Potential

A culture of appreciation is one of the most powerful—yet often overlooked—ways to drive employee engagement, satisfaction, and retention. When employees feel valued, they become more motivated, productive, and committed to their organization.

Beyond productivity, appreciation drives other measurable improvements in employee performance. Among other findings, Reward Gateway | Edenred’s 2025 Appreciation Index signals that when employees feel appreciated by their employers:

• 70.5% report higher engagement levels.
• 68.7% experience greater job satisfaction.
• 59.2% are willing to take on extra tasks.

Appreciation isn’t just good for employees though; it’s essential for business success. Research shows that while recognition can boost productivity by 23%, feeling truly appreciated can increase it by 43%, nearly doubling the impact.

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However, not all employees experience appreciation in the same way. Personal circumstances, job roles, and responsibilities can shape how valued they feel. True appreciation goes beyond recognition. ongoing, intentional efforts to acknowledge – not just the actions that employees do – but who they are and all they bring to the culture and the company. Findings from the aforementioned Appreciation Index help signal areas that employers can prioritize to ensure their workforce feels valued. By understanding and embracing these differences, employers can create a more inclusive culture where every employee feels seen and supported.

Work-Life Balance and Flexibility Needs

Workplace flexibility may at times seem to favor employees with children or caregiving responsibilities, such as widespread understanding around attending school functions or caring for a sick child. However, it’s essential to recognize that employees without caregiving duties also need time off for personal priorities, like attending events or taking a weekend getaway with friends.

While managers generally should strive to do better at supporting all employees, research shows that employees with caregiving responsibilities typically report feeling more supported by their managers (scoring above 60%), while those without caregiving duties score lower (58.2%). While a small difference in the data, this finding was only true in the U.S. and provides an introspective opportunity to consider where and why differences may emerge, and highlights the need for organizations to ensure that flexibility is extended fairly to all employees, regardless of their personal circumstances. When flexibility is inclusive, it signals to employees that their individual needs and contributions are valued, creating a more appreciative and equitable workplace.

Gender Identity

Employee gender identity is another factor that can impact whether and how employees feel appreciated at work. Interestingly, the gap between men (67%) and women (65%) is relatively small, suggesting that on the whole, employers are doing well to minimize discrepancies between the two groups. However, like with any discrepancy, there is still opportunity to better understand where and why these nuanced differences may emerge to ensure they are not exacerbated.

However, a significant gap exists in how gender non-conforming and non-binary individuals experience appreciation, with an alarmingly low average of just 44.2%. Organizations must take proactive steps to foster an inclusive environment where all employees feel valued. By recognizing and addressing gender disparities in appreciation, companies can create a culture where everyone, regardless of gender identity, is acknowledged and celebrated for their contributions.

Job Autonomy and Organizational Size

The ability to make decisions and have more control of one’s work plays a significant role in how valued employees feel by their employers. Employees with higher levels of autonomy report higher appreciation levels (70%) compared to those with less autonomy (60%). This autonomy fosters a sense of control and empowerment, which directly contributes to a stronger sense of value in the workplace.

However, appreciation isn’t evenly distributed across all levels of an organization. Executives often report feeling more appreciated (74.4%) than their mid-level (65.2%) and entry-level (63.2%) counterparts, highlighting a critical gap. Similarly, the size of an organization can also impact how valued employees feel. Employees in smaller companies (fewer than 500 employees) tend to feel more appreciated (66.5%), likely due to closer interactions with managers and more frequent feedback. In contrast, employees in larger organizations (over 2,500 employees) consistently report feeling less appreciated (60.5%), pointing to the need for big companies in particular to invest more in recognition efforts to ensure employees don’t slip under the radar.

Taking Action to Unlock Untapped Employee Potential

Every employee has unique priorities, challenges, and circumstances that shape their experience at work. Awareness of differences and identifying potential gaps in the employee experience allows companies to take meaningful steps to appreciate and support today’s diverse workforce. Based on these data points, recommended focus areas for HR leaders include:

• Training leaders to recognize and address differences – Equip managers with the skills to offer consistent, meaningful, and personalized appreciation to all employees, not just high performers or those they interact with most.
• Fostering open and supportive team dynamics – Develop specific strategies to create safe, trusting relationships between leadership and their teams, ensuring employees feel heard and valued.
• Diversifying recognition methods – Use a mix of peer-to-peer recognition, personalized rewards, public acknowledgment, and private appreciation to ensure employees feel valued in ways that resonate with them.
• Creating continuous feedback loops – Give employees a voice in how they prefer to be recognized and regularly assess appreciation efforts to make meaningful improvements.

The most effective organizations don’t leave appreciation to chance. They make it a core part of their culture, ensuring it reaches all employees. By embedding appreciation into their culture and everyday interactions, companies unlock untapped potential and build a workforce that is not just engaged, but truly invested in driving the business forward.

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