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Americans are wrestling with stubbornly high record levels of inflation and the costs of everything rising unabated. The wave of layoffs shook the complacency of workers, disproving the workplace fallacy that your company is a family. These and other events, like escalating tensions in Ukraine and the Israel-Hamas conflict, have led to mental and emotional wellbeing challenges for many people, impacting how they show up for work.

Additionally, workplace stress is also affecting American workers. According to data from Zippia, 83% of workers in the United States suffer from work-related stress, with one in four reporting that their job is their leading cause of stress.

Absenteeism, as a result of depression, costs U.S. businesses $51 billion a year and an additional $26 billion in treatment costs. More than half of U.S. workers admit to being disengaged at work due to stress, which leads to a dip in productivity. Companies spend nearly 75% of a worker’s annual salary to cover productivity loss or to replace workers. The primary causes of workplace stress are heavy workloads (39%), interpersonal conflicts (31%), poor work-life balance (19%) and job insecurity (6%).

A recent joint survey by Workhuman and Gallup reveals that employees are 68% less likely to experience workplace burnout when they feel connected to their culture. Workers receiving social recognition at their organization are 3.7x more likely to be engaged and 55% less likely to seek a new job. It is up to organizational leaders to ensure employees feel connected to their workplace and thrive at their jobs.

I spoke with KeyAnna Schmiedl, the chief human experience officer at Workhuman, to understand how companies can be empathetic, compassionate and show appreciation and gratitude to workers to improve their mental health.

What Is Social Recognition?

Social recognition in the workplace refers to employees empowering and acknowledging one another for great work, while publicly demonstrating appreciation. It can be a powerful tool for creating a psychologically safe and uplifting culture. According to Schmiedl, showing gratitude to fellow co-workers could increase feelings of happiness and life satisfaction.

When employees respect and elevate their colleagues, it creates a culture of excellence. This peer-to-peer recognition is a meaningful way to inspire and motivate a person. They feel seen and heard and know they are appreciated for all the extra effort put into their job. The positive feedback enhances feelings of value, as workers are publicly and individually recognized for their achievements.

With the buy-in from the leadership team, gratitude is expressed regularly, as it is a critical element of the corporate culture. People happily share positive interactions, experiences and congratulations for an achievement—no matter how seemingly inconsequential. Social recognition runs the gamut from celebrating a new product launch or a colleague’s birthday.

Selfishly, it feels good to applaud others, knowing you made someone’s day. Collaborating becomes more pleasant for employees, as instead of one-upping each other, the goal is to bestow honors on co-workers for their wins.

How Companies Benefit

The goodwill that inspires workers is also a strategic management style. “Giving great recognition is an effective way for leaders to communicate the values and behaviors they most want to see from their employees,” said Ed O’Boyle, global practice leader at Gallup. “It also sets the example for establishing a culture of recognition and inspires employees at all levels to receive and give recognition that is authentic and meaningful, and to do so often.”

When employees are frequently given a proverbial pat on the back or a “thank you” for putting in the extra hours to finish a project, it will lead to higher engagement and worker happiness. Retention will improve with less attrition and productivity increases. Additionally, the study found that employees are more than five times as likely to recommend their company as a great place to work.

Schmiedl said about companies being defined by their culture, “Our analysis found that when engaged employees describe their company’s culture, they’re using words such as caring, innovative and inclusive.” She continued, “Actively disengaged employees are more likely to use words such as toxic, disorganized and chaotic. It’s up to leaders to decide which of those cultures they want associated with their companies, keeping in mind this isn’t just about their employee satisfaction scores or the tone of the office, it’s a choice that determines if their business is future-proof or not.”

Source: Forbes

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