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The Power of Employee Recognition in Engagement

Packed with Purpose | Mar 4, 2025

Employee recognition and appreciation make a big difference in your workplace. An occasional thank-you is welcome, but the best employee recognition ideas go further. True recognition means you acknowledge employees’ behaviors, efforts and contributions toward your company’s goals.

Greater employee engagement follows greater employee recognition. With strong employee engagement, they genuinely care about their work and your company. Recognition fuels engagement — and retention.

Here at Packed with Purpose, we surveyed 300-plus employees to bring you exclusive insights into what amplifies employee recognition.

Note. Employee Appreciation Day may be in March, but don’t limit recognition to just one day. Whether you need Employee Appreciation Day gifts or want to foster a culture of recognition all month (or year) long, we’ve got you covered.

Nearly 8 out of 10 employees (78%) surveyed consider feeling recognized crucial to staying with their company.

Tips for Employee Recognition That Makes a Difference

Keep these keys in mind when you’re brainstorming about employee recognition ideas:

  • Stay authentic. Employees need to know you mean what you say and do.
  • Personalize recognition. Employees prize personalization in recognition — it shows you value them as unique. In our survey, 75% said they’d like to receive gifts personalized to their interests.
  • Give recognition as quickly as you can. Regular reviews are good times to show appreciation, but a right-away gesture is incredibly meaningful.
  • Enlist senior leadership. Recognition from leadership shows that an employee benefits the whole company. In our survey, 47% said appreciation from senior leadership was important.
  • Listen to people outside the company. Employees like hearing from your customers, clients, vendors or partners. Their collaboration and hard work affect those groups, too!
  • Back up recognition with policy. Nurture a supportive, inclusive work environment that cherishes your employees’ lives and community, not merely their output.

Let’s see how employee recognition ideas that go the extra mile drive employee engagement.

Tip. Our survey revealed that the top three ways employees want recognition are money, gifts and basic thank-yous. That sentiment extends beyond only the holidays!

52% of respondents said they simply want their companies to recognize them.

How Recognition and Appreciation Drive Employee Engagement

Employee recognition packs a punch when you give it time and thought. These are core actions behind that dynamic.

Help People Feel Seen

It’s easy to feel invisible in the workplace. Once that happens, disengagement isn’t far behind. Recognition shines a light on an employee’s contribution, big or small, and breaks that cycle.

A personalized gift or message shows employees their work matters — and not just to your bottom line. They’re more than workers; they’re people. You see, hear and appreciate them.

People are more likely to stay motivated and connected to their work when they feel seen.

Strengthen Connections to Company Values

Thoughtful recognition strengthens what matters most to your company. Employees gain a stronger sense of purpose when you acknowledge them for living out your core values. Your gift or message shows you know their efforts move the company’s mission forward.

Over time, recognition encourages your employees to align their work with your company’s bigger picture. The result is a more engaged team who see their everyday tasks contribute to shared goals.

63% of our respondents would enjoy a gift that has a positive social impact.

Motivate Ongoing Effort

Employees are more likely to keep putting their best foot forward when they know you notice their hard work. Recognition creates a positive feedback loop — appreciating good work motivates them to keep working well, which boosts performance.

Regular motivation through recognition has a lasting influence on employees’ productivity and sense of achievement. Even small, occasional acts of appreciation spark new energy, so ongoing gifts and shout-outs go a long way.

[Related: 5 Gifts To Celebrate Summer With Your Employees]

Build a Positive Workplace Culture

Recognition shapes the whole workplace environment. Bake appreciation into your company’s culture, and you build an overall positive, supportive atmosphere.

Employees who know you appreciate them are more likely to tell others they appreciate them — a ripple effect of positivity. This culture of recognition bolsters collaboration, decreases stress and increases morale. Your employee recognition ideas plant seeds for a workplace where everyone lifts each other up.

Create a Sense of Belonging

Belonging is at the heart of employee engagement. You send a powerful message when you recognize employees’ work fairly and personally: “You matter.”

Thoughtful employee recognition helps your employees feel less alone. They’re an indispensable member of a team who needs their voice, so let them know!

This is particularly important in diverse teams and remote workspaces. Give appreciation consistently, and you show you don’t overlook people in the minority or employees who feel isolated.

[Related: Recognition Ready: 5 Exceptional Ways To Honor Administrative Professionals Day]

Employee Insights From Our Survey

We came away from our study with a much keener view of how employees think and feel about employee recognition. We’ll let them speak for themselves with these employee recognition and appreciation quotes.

Personalization works wonders:

  • “Unexpected is always best. Words make gifts meaningful. If there isn’t a note included, the recognition is lost.”
  • “Recognition should not be a one size fits all, so customization is key as it shows thought was put into it!”

Show appreciation ASAP for a more memorable experience:

  • “When I think of day-to-day, I think a simple thank you is welcome. The larger or more impactful tasks would welcome both a thank you and something additional however big or small.”
  • “Recognition should be spontaneous, not just at review time.”

Your policies and actions matter more than you might think:

  • “I have to say that I’ve been at so many jobs when recognition is verbal and nothing else. After a while, it gets demoralizing. What I mean by that is getting told countless times ‘wow, you did a great job on this!’ is great at first but when it doesn’t result in something real (i.e. promotion, money, other incentives) it starts to feel worthless. Praise is important but ‘put your money where your mouth is’ rings truest here.”

More appreciation and recognition efforts lead to better business:

  • “Being recognized can be so simple yet makes an impact on the person receiving it. People tend to work harder when they’re acknowledged.”
  • “Everyone wants to be ‘seen’. It does take a village to make things successful.”

56% of employees said they’d like a gift that includes snacks, drinks and food.

Appreciate Your Employees With Packed with Purpose

It’s wonderful to be validated — to know others recognize what you do is worthwhile. Recognition is more than one of the largest drivers of employee engagement. It’s a way to show your employees that you sincerely care.

Take Employee Appreciation Day (and any time) to send your team some well-deserved kudos. At Packed with Purpose, we’re proud to craft employee gifts that say “You matter” while giving back to communities.

Get in touch to discover meaningful employee recognition gifts — we’ll also help you find perfect Employee Appreciation Day gifts!

About Packed with Purpose

Packed with Purpose is a Certified Woman-Owned and B Corp business that embeds social and environmental impact into the everyday act of gift giving. These distinctly curated gift boxes source products from over 140+ purpose-driven organizations that transform more than 750,000 lives, resulting in a unique gifting experience that is as inspiring as it is impressive. Strengthen relationships with clients, employees, or friends with gifts for every budget or occasion through seamless ordering, branding and customization. Discover why the nation’s leading brands choose to send gifts that are Packed with Purpose.

Amplify your impact today.