The Secret to Retention: Gratitude in the Workplace

This was adapted from a newsletter by Amanda Haddaway, HR Answerbox

As we approach the holiday season, leaders should be thinking ow how they are going to show gratitude to all the individuals who contribute to the organization’s success. And that begins with showing gratitude to the employees.

Why is it important to do so? Gratitude is a powerful driver of engagement, motivation, engagement and retention.

Research consistently shows that employees who feel appreciated are far more likely to stay with their employers. A 2023 Workhuman study found that organizations with strong cultures of recognition are four times more likely to improve employee engagement and twice as likely to see better retention rates. Recognition doesn’t need to come with a big price tag. It just needs to be consistent, authentic, and personalized.

When gratitude becomes embedded in an organization’s culture, employees are more invested in the organization’s mission. They take greater pride in their work, demonstrate higher levels of teamwork, and recover more quickly from workplace stress. Simply put, gratitude fuels inclusion and belonging.

Creative Ways to Show Gratitude. If you’re looking for meaningful ways to express gratitude to your team this season, and throughout the year, consider the following:

Personal Notes of Thanks. A handwritten card from a manager or executive is powerful and makes a lasting impression. Be specific about the person’s contributions: what they did, why it mattered, and how it made a difference.

Gratitude Boards or Digital Walls. Encourage peer-to-peer appreciation by creating a physical gratitude board in a shared workspace or a digital version through platforms like Slack or Teams. Seeing kind words from colleagues can lift morale across departments.

Time as a Gift. The holiday season can be stressful as people juggle multiple responsibilities. Offering an early release day, a flexible schedule, or an extra day of PTO during the holidays can go a long way to show you value employees as people, not just workers.

Charitable Giving in Employees’ Names. If your organization participates in community giving, consider letting employees choose a charity to receive a donation on their behalf. This blends gratitude with purpose and aligns your culture with broader community impact.

Shared Celebrations. Whether it’s a casual team lunch, a cookie exchange, or a virtual “cheers and gratitude” hour, collective celebrations build connection and reinforce a culture of appreciation. Include remote or hybrid staff (gift cards for restaurants for lunches or bakeries for cookies and treats) so everyone feels part of the experience.

Keep It Going. Don’t stop once the holidays are over. Keep a culture of gratitude. The most successful organizations incorporate gratitude as a year-round practice. Managers who regularly acknowledge effort and celebrate wins create teams that are more loyal, motivated, and connected.

As you leave for the Thanksgiving holiday, reflect on how you can show appreciation and gratitude. Remember that a simple thank you may be the most powerful retention strategy you have, and it doesn’t cost anything.

Special thanks to Amanda Haddaway, Managing Director, HR Answerbox. Need an experienced HR Consultant? Learn more at www.hranswerbox.com