How Appreciation Affects Employee Retention

A colleague had been coming to work every day for 7 years. Never missed a deadline or under-delivered. One day… he asked his manager for feedback on his contributions. The manager (minding their own business) said: "Oh, you're doing fine. Just keep doing what you're doing." You know what my colleague did? He quit the next day. Would I have advised him to do that? Probably not. Did he overreact? Absolutely not. You see… He had been receiving the same kind of answer for quite some time. So, even if his manager didn't know, he was already planning his ultimatum. And your team members might be planning theirs as well. Here's a stat that will blow your mind: According to a recent report from Gallup and Workhuman, employees who get meaningful recognition for their work are 45% less likely to leave their jobs. That's right. Proper recognition is the difference between retaining or losing your best talent. Here's what smart leaders understand about recognition at work: ✅ It drives professional development. ✅ It creates community and connection. ✅ It's a powerful antidote to stress and burnout. ✅ Recognition changes how people feel about their work. The data doesn't lie. Based on the same 2-year study, tracking 3,400 workers found something fascinating: → High-quality recognition = 45% higher retention. → Stronger sense of community among team members. → Lower stress levels reported by recognized employees. Here's what you can do today: 1. Create systems for consistent feedback. 2. Make recognition meaningful and specific. 3. Catch good behavior as it happens - don't wait. 4. Recognize people for who they are, not just what they do. Your people aren't just looking for a paycheck. They want to feel seen, valued, and appreciated. — P.S. Unlock 20 years' worth of leadership lessons sent straight to your inbox. Every Wednesday, I share exclusive insights and actionable tips in my newsletter. (Link in my bio to sign up). Remember, leaders succeed together.

Employees don’t leave for more money. They leave because they feel unseen. 👇 Key Insight People crave meaning, not just a paycheck. Retention is rooted in recognition. Employees want to feel like they matter. A quick story: An employee once told me: "I don’t need a raise — I need to know that my boss sees what I do." The Breakdown ❌ Ignored contributions ↳ Silence says: "You're replaceable." ❌ One-way communication ↳ Without feedback, belonging never takes root. ❌ Surface-level check-ins ↳ "How are you?" isn’t enough. ❌ Inconsistent recognition ↳ Praise shouldn’t be random or rare. ✅ Celebrate impact ↳ Recognize outcomes, not just effort. ✅ Create safe dialogue ↳ Invite honest conversations regularly. ✅ Go beyond titles ↳ Acknowledge personal growth and potential. ✅ Normalize gratitude ↳ Make appreciation part of daily culture. Closing Takeaway Retention isn’t complicated. Make people feel seen, heard, and valued. That’s the real currency of loyalty. ❓ How does your company make employees feel truly valued? ♻️ If you believe people deserve to feel valued at work, share this. 👋 Follow me (Dr. Chris Mullen) so you don't miss the next post.

Keeping top talent isn’t about offering the biggest paycheck. It’s about offering the deepest respect. I’ve seen this play out over and over: Talented people walking away, Not because of money, But because they felt invisible. Most teams lose their best people because: ↳ They assume salary is enough ↳ They skip real recognition ↳ They expect loyalty without care But retention isn’t luck. Retention is built. 1/ Before They Think of Leaving It’s already too late. ➡️ Daily Recognition ↳ Praise their impact, not just effort ↳ Be specific: what did they actually do well? ↳ Celebrate wins in public ↳ And give feedback that helps them grow ➡️ Career Pathing ↳ Don't wait for them to ask "what's next?" ↳ Create visible growth ladders ↳ Offer projects that stretch, not just stress ↳ Make it easy to see a future at your company ➡️ Emotional Safety ↳ Are you listening when they speak up? ↳ Do they feel safe failing, learning, trying again? ↳ Respect isn’t just words, it’s culture in action 2/ During Moments That Matter The best companies don’t wait for exit interviews to start listening. ➡️ Milestones ↳ Promotions, birthdays, even tough seasons ↳ A simple “we see you” goes a long way ↳ Gratitude shouldn’t just be annual ➡️ Manager Check-ins ↳ Are they challenged? Bored? Burnt out? ↳ Ask. Then act. ↳ Growth talks > performance reviews ➡️ Team Culture ↳ Respect everyone’s time and boundaries ↳ Celebrate contributions, not just personalities ↳ Create space for quiet talent to shine too 3/ When They’re at Their Best That’s when they need the most support. ➡️ Don’t over-rely ↳ Top performers aren’t machines ↳ Give them rest. Give them space. ↳ Or they’ll go where they’re nurtured, not used ➡️ Pay Fair, Not Just High ↳ Transparency builds trust ↳ Compensation should match impact ↳ But value goes beyond money Remember: People don’t just stay for the perks. They stay where they feel valued, seen, and supported. What’s one thing your best boss ever did to make you feel valued? Drop it in the comments 👇 🔁 Repost this if you lead a team, or want to someday. ➕ Follow me for more people-first hiring & leadership insights.

Studies show that replacing an employee costs 1.5 to 2X their annual salary. Let’s say you run a marketing firm and pay your marketing managers $65,000 per year. That’s $97,500 to $130,000 lost every time an employee chooses to leave. And the better they are at their job, the more you lose. When turnover is high, the avalanche quickly destroys profit margins. You probably offer a good salary, benefits, and don’t have a toxic culture. This used to be more than enough to attract & retain top talent. But these days, it’s all about the intangibles. Feeling heard and respected, making an impact, doing work that has meaning, and having opportunities to grow. That’s why this topic always pops up whenever you get two or more COOs/Second-in-Commands in a room together. Because everyone is worried about losing their best people. This is where the “Power Thank You” strategy comes in. Here’s how it works: Regularly share sincere, specific, timely, and public "thank you"s (in a meeting or through group emails/messages) to:   - Make employees feel appreciated whenever they do great work. This leads to them naturally doing more great work.   - Show what you value, so people understand what’s expected (and do it).   - Encourage team members to thank each other more, so you can build a healthy culture that makes even the highest performers want to stay. I used this strategy myself when building high-performing project teams that helped federal grantees increase job opportunities in their communities. And our perfect evaluation scores helped the company win at least $5M in new contracts. The Power Thank You is the ultimate employee engagement hack.

Gratitude is criminally underused in workplaces. Too many leaders focus solely on performance metrics, forgetting the human element. I’ve seen it firsthand—employees pour their hearts into their work, but their efforts go unnoticed. The result? The emotional exhaustion sets in. The disengagement follows. Gratitude shouldn’t be reserved for special occasions. It’s about the small, everyday acts: ➤ Acknowledging hard work in team meetings. ➤ Saying thank you for going the extra mile. ➤ Taking the time to recognize someone’s contribution publicly. Gratitude builds trust, fosters loyalty, and makes employees feel seen and valued. Without it, you risk losing the very people who are making your company thrive. The cost of neglecting gratitude? Higher turnover. Lower morale. Disengagement. How are you showing appreciation today?

This is one of the most important lessons I learned as a leader early in my career. Showing appreciation can have a greater impact and value on employees than giving a raise or a bonus. In fact, 92% of employees are more motivated to repeat a specific task after being recognized for their work! In my own journey, when I first became a CEO, I was hyper-focused on results and driving revenue. At first, our progress was great, but then we plateaued, and I couldn’t understand why. However, after a talk with my CMO, it became apparent that my team felt unmotivated and underappreciated. My team was the driver of our success, but I forgot to let them know. Immediately, I followed up with each employee. It was a bit of a process, but I made sure to find specific examples of each employee’s contribution towards our success. Within a week, our numbers were off the charts 📈. The team’s motivation was at an all-time high. This highlights the unparalleled importance of taking the time to recognize each employee to optimize company culture and performance. Saying “Thank you!” isn’t good enough. Aim to highlight specific examples. And if the headcount is too high, divide and conquer with your leadership. When was the last time you showed or received appreciation, and how did it affect your performance? #leadership #entrepreneurship #performance