9 February 2024

How Underappreciated Employees Impact Your Business

By Ronald Smith

Have you ever thought about how important it is to make your employees feel valued? Nowadays, employees want more than just a good salary and a work-life balance. They want to find meaning in their jobs and feel appreciated for their hard work. So, let me ask you this: Do your employees feel valued? If you’re not sure, it’s time for a change.

The Majority of Employees Feel Underappreciated

Over the years, many studies have shown the benefits of making employees feel valued. But what about the negative effects of them feeling unappreciated? Surprisingly, until recently, this aspect hasn’t been fully recognized.

I recently came across an interesting survey conducted by Monster in the UK. They surveyed 2,000 employees and 500 employers, and the results were quite surprising. It turns out that a whopping 58 percent of workers feel that they are not appreciated enough in the workplace. Can you believe that?

Even more shocking, 54 percent of the respondents said that they personally feel underappreciated. This lack of appreciation has had a negative impact on 41 percent of them, causing them to feel demotivated. It’s disheartening to hear that so many people are feeling undervalued.

Now, let’s take a look at the other side of the coin – the employers. Interestingly, 75 percent of them admitted that they are aware of the negative consequences of not expressing gratitude to their employees. They know that failing to appreciate their staff can lead to a decrease in motivation. However, a surprising 41 percent of employers confessed that they don’t thank their employees enough. It’s quite puzzling, isn’t it?

So, what’s the real impact of underappreciated employees?

Well, it’s not just a matter of being rude or arrogant. It turns out that there are actual financial implications. A study conducted by the esteemed professor Daniel Ariely from MIT has confirmed this hypothesis. The study shows a clear link between a lack of appreciation and the bottom line of a company. It’s fascinating how something as seemingly small as a thank you can have such a significant impact.

So here’s the deal. In this study, me and my team decided to get a little creative. We gave a bunch of people a sheet of paper that was filled with a bunch of random letters. And get this – we asked them to find pairs of letters that were exactly the same. Sounds easy enough, right? Well, there was a catch.

Each time they finished a round, we offered them less money than before. Yeah, I know, pretty sneaky, huh?

Now, here’s where it gets interesting. We split the participants into three groups.

First, we had the folks in Group 1. They were asked to write their names on the paper before handing it to us. And you know what? We even went ahead and told them great when they handed it in. We put their papers in a pile and moved on.

Then there was Group 2. These guys didn’t write their names down. We just took their papers and tossed them in a pile without even looking at them.

But the real twist came with Group 3. Oh boy, did we mess with them. As soon as they handed in their work, we shredded it right in front of their eyes. Talk about a confidence crusher!

The results: when my work got shredded, I needed to be paid twice as much just to keep going. But even if my work was saved, just being ignored made me almost as desperate for money as if it had been destroyed, states David Hassell, an expert in human resources.

This study might be just one example, but it clearly shows something that should be quite obvious to anyone who understands how workplaces function. Being appreciated is more valuable than anything else, even money. In fact, as Ariely himself puts it, It’s almost as terrible to ignore someone’s hard work as it is to shred it right in front of their eyes.

Appreciating others is super important, and there are lots of ways that we might not do it without even realizing it. I’ve learned a lot about this from Glenn Llopis, who has spent a long time as a big-time executive and leadership consultant. According to him, there are six big ways that leaders can undervalue their employees. It’s not just about forgetting to say thanks. It’s also about not embracing differences, not seeing people’s strengths, not asking for advice, not building relationships, not giving feedback, and being too controlling over little things.

I’ve got a story to share with you. So, this person named Rotem Stark, who’s an entrepreneur, has this great belief in the power of appreciation. She knows firsthand how it directly affects the motivation of employees. You know, she’s had all sorts of jobs in her life – waitressing, event planning, makeup artistry, fashion editing, you name it! And she’s been through both good and bad experiences. But she confidently says, The jobs where I felt appreciated were the ones I rocked at!

Now, what Rotem is saying is something a lot of employees around the world can relate to. There’s nothing worse than feeling unappreciated. It can really hurt and bring you down. And you know what? It’s about time employers figure this out!

Let’s Make Our Employees Feel Valued!

As an employer, I may not always have a lot of money to pay high salaries, and I may not have the best benefits to offer. But I always have the power to show my employees that I appreciate them. Here are some easy ways I can do that:

1. Let’s Talk and Connect

Sometimes, I worry too much about being in control and showing my power as a boss. But it’s important for me to let go of that mindset. I need to have meaningful conversations with my employees to let them know when they’re doing a great job (and when they need to improve).

Every day, I challenge myself to have at least one meaningful conversation with a team member. It could be as simple as saying, Hey, I noticed how amazing you were with the client on that conference call this morning. I truly appreciate you representing our company so well. I’m even considering giving you the opportunity to work with our other important client next week. Keep up the fantastic work! The impact of a statement like this goes beyond any monetary bonus.

2. Show Respect and Kindness

As a boss, it can be frustrating when someone makes a mistake or fails to meet a goal. But constantly criticizing and belittling employees doesn’t help your company. We all make mistakes, and goals are not always met. While it’s okay to give your team a gentle push, always remember to treat each person with respect and kindness. These two qualities don’t cost anything, yet they make a world of difference.

3. Acknowledge Each Person

If you want to boost the spirit of your team, it’s great to do something for everyone like ordering lunch or bringing in treats. But if you want to show appreciation for a specific person, it can easily get lost in these group celebrations, shares Avery Augustine, a manager at a growing tech company. In one go, your top salesperson and your newest intern have the same exact reward: a slice of pizza. Can you imagine how valued your top employee will feel?

There is power in acknowledging people individually. It doesn’t have to be a big production or anything formal – a quick pat on the back in the hallway often suffices – but do take the time to address people by their names and recognize their unique contributions.

4. Seek Feedback and Suggestions

I get it. Communication in a company is a two-way street. It’s not just about the bosses giving orders and the employees blindly following. No, it’s about creating an environment where everyone’s voice is heard and valued.

Imagine this: if you’re an employee and you never get a chance to speak up or share your thoughts, how would you feel? Probably not great. You might start to feel like you’re just a servant, always being told what to do without any input of your own. But if you’re given the opportunity to be heard and your opinions are taken seriously, that’s a whole different story. You feel like an important part of the team, right?

Show Your Employees They Matter

To be honest, you really can’t afford to not appreciate your employees anymore. It really brings down the team’s spirit and hurts the company’s success. But here’s the good news: showing appreciation is actually quite easy. It doesn’t require much effort to let an employee know that they are valued. In fact, all it takes is opening your mouth to say thank you or writing a quick email to express how much someone means to you.

That’s what I call a smart investment in the future of your company.

That’s what I call a smart investment in the future of your company.