The Power of Appreciation: How Recognition Builds Culture and Retains Talent

by Julie Tuggle-Nguyen

Every company has a culture — even if it’s unspoken, even if your team works remotely. As a small business leader, you have the power and responsibility to shape that culture in a way that engages your employees and moves your organization forward.

This is the first article in a new series focused on building and strengthening workplace culture. Each month, I’ll dig into a core element of culture — starting with one of the most powerful (and underrated) leadership tools you have: appreciation.

Appreciation is a Strategic Leadership Tool
Employee recognition is often treated like a bonus — something to do when there’s extra time or budget. But appreciation is a retention lever, especially in today’s tight labor market. And for small businesses, where every team member plays a critical role, it’s a leadership must. In fact, 79% of employees say recognition makes them work harder, according to SHRM, and 53% say they would stay longer at a company if they felt more appreciated.

One of the most effective ways to build a strong, loyal team is through a culture of everyday recognition. When appreciation is embedded in your culture — not reserved for special occasions — it reinforces trust, boosts morale, and helps people stay connected to the organization’s purpose.

Small Acts, Big Impact
Recognition doesn’t have to be expensive to be effective. At Midwest BankCentre, we build appreciation into the rhythm of daily work — through both formal programs and personal moments. These efforts helped us earn not just a high retention rate, but also a St. Louis Post-Dispatch Top Workplace award five years in a row — based entirely on team feedback.

Here are a few ways we practice appreciation that any business can adapt:

- Team shout-outs
We use a tool called Whistle Rewards to let team members publicly recognize each other and give meaningful micro-bonuses. A $5–$20 reward sent with a personalized thank you note can go a long way. It’s less about the money and more about the message: I saw what you did, and it mattered.

- Celebrations and milestones
We mark birthdays, anniversaries, and promotions with personal notes and events. One of our favorite traditions is an annual celebration honoring everyone who was promoted that year — a powerful way to reinforce growth and opportunity.

- Team gatherings
From year-end department celebrations to our annual all-employee appreciation party, we create space to reconnect, recharge, and recognize one another.

The Personal Touch
Not every thank you has to be public. In fact, some of the most meaningful ones are private.

- Handwritten notes
I send personal thank you cards regularly, especially to project leads, committee members, and culture carriers. You don’t need fancy stationery — just a few heartfelt sentences can make someone’s week.

- Verbal appreciation
A thank you in a meeting, a quick message on Teams, or a 1:1 moment are low-cost, high-impact ways to make people feel valued. We actively encourage peer-to-peer appreciation, too. When team members take the time to thank each other, it strengthens trust and connection across your organization.

3 Practical Tips to Start (or Strengthen) a Recognition Culture
If you’re just getting started, here are three simple ways to build a culture of appreciation:

1. Make it personal.
“Great job” is nice, but “Thank you for staying late to help us meet that deadline. Your attention to detail really made a difference” is better.

2. Make it a habit.
Schedule it into your routine. Add a “gratitude moment” to staff meetings, or write two thank you notes every Friday.

3. Make it visible.
Create opportunities for employees to see their colleagues being recognized. It reinforces the behaviors and values you want to grow.

Final Word: Culture is Built in the Small Moments

Appreciation doesn’t require a big budget — just intention. When people feel seen and valued, they give more, stay longer, and lift others around them.
If we want to build great teams, we have to start by recognizing the people behind them. When we take the time to say thank you — sincerely and regularly — we build workplaces where people know they matter. That’s culture in action.

Julie Tuggle-Nguyen is Chief Human Resources Officer at Midwest BankCentre.