The (Super) Power of Gratitude on Corporate Cultures
I was once asked to consult for a boutique marketing agency whose 15 to 20 employees were in constant rotation. The average tenure there was less than 15 months. Because of the constant turnover, the company founder/president spent an inordinate amount of time recruiting, interviewing, and training new employees—only to have them leave for greener pastures a year or so later.
The agency president, let’s call him Bob, was confounded by the situation. He considered himself to be both a fair and respectful boss who offered good benefits. He also paid his employees a competitive wage. Why couldn’t he keep good workers?
I spent some time interviewing the agency’s staff, focusing specifically on their impressions of Bob as a manager. The responses were almost universally unanimous: Bob was smart but cold. He was quick with criticism but rarely, if ever, praised good work. Never once had any employee ever hear him utter the words “Thank you,” even when meeting a client deadline had required them to work extra hours or on weekends.
I presented these findings to Bob and was surprised that he did not deny these allegations or plead ignorance of such corrosive behavior. In fact, he admitted they were part of a deliberate business strategy.
“I learned long ago that if you’re nice to your employees, they’ll use that to try and take advantage of you,” he explained. “They’ll ask for time off. More vacation days. I don’t praise good work or say ‘Thank You’ because I believe excellence should be the baseline. If I don’t criticize something, then they know they’re doing a good job. Besides, if you praise workers, they don’t perform any better. They just ask for more money.”
There’s a lot to unpack here. Rather than try to dissemble his questionable strategy point by point, I just went straight to the bottom line.
“Is this way of doing business helping you attract and keep quality talent? Is it making your business more profitable?” I asked.
Bob had to admit it was not.
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Unfortunately, Bob is not unique in the business world.
Many managers and owners believe—or were trained to believe—that good work should be expected, that praise infantilizes workers (example: constant praise is something you give to children and pets), and that even showing gratitude is a sign of weakness. According to this ethos, professionals should not need to be constantly stroked and complimented like puppies being house-broken.
Is this accurate? No. It turns out, study after study reveal just the opposite. Employees not only desire, but need regular recognition, not just to know they’re doing their jobs correctly, but to foster an allegiance to their organization as a whole. Workers who feel little to no emotional connection to their employer, who don’t feel engaged and are “just there for the paycheck,” are more likely to up and leave at the first opportunity compared to people who feel valued where they work.
On a practical level, for employers like Bob, cultivating a culture of gratitude is likely to significantly increase retention rates and thus reduce the expenses associated with recruiting and training new employees. An antidote to contemporary personnel maladies manifested in phenomenon like The Great Resignation and Quiet Quitting, it can also boost innovation, increase productivity, and lead to overall greater job satisfaction. In short, creating a culture of gratitude can be a real game-changer for any business.
So how does one put this “culture of gratitude” into practice? There are several ways:
Remuneration. The most obvious way to say “Thank you” is through raises, bonuses, and other forms of direct compensation. Note that money is always appreciated—but money alone rarely does the job. Unless you’re paying outrageous salaries, someone motivated primarily by cold hard cash can usually find a better situation elsewhere. And, true employee engagement happens with great cultures and great leaders, not by paying people more, especially if their boss is toxic.
Personal recognition and awards. Employers can provide verbal or written feedback to their employees, highlighting specific achievements or contributions to the company. This can be done in one-on-one meetings, performance reviews, or team sessions. Organizations can also recognize employees publicly via company-wide announcements, social media posts, or annual or quarterly award ceremonies, which can help to create a sense of pride and camaraderie among the entire workforce.
Opportunities for professional development. Providing training or mentoring programs can also help workers feel that you’re invested in their success and growth and can lead to increased motivation and loyalty.
Commitment to Employee Wellness. An investment in employees’ emotional, physical, and financial wellness is a true differentiator with respect to recruiting and retention, and is an obvious way to show your people you truly care about them as individuals.
Ultimately, if you run a company, regardless of its size, recognizing and appreciating the hard work and contributions of your employees can help you generate a more engaged and committed workforce, which can ultimately lead to greater profitability for your company. It can also help you prevent workers fleeing for something better.
That’s why I say, don’t be like Bob. Don’t be afraid to say, “thanks.” For support in creating a culture of gratitude leading to your own organizational success, please contact me today at laura@conoverconsulting.com.