America's jobs have a big problem and it's getting worse – FIRE and poor well-being. According to Mercermore than 8 out of 10 employees are at risk of burnout in 2024.

A major reason for this is that employees don't feel valued in a way that resonates. Actually, Gallup found that 75% of employees whose well-being is suffering feel undervalued at work and are considering leaving their jobs. Furthermore, recent research from OnePoll found that 50% of American workers left a position because they felt undervalued. It is clear that we are seeing a large valuation gap – a major reason behind the poor welfare today.

To foster a happy and therefore thriving workforce, it's time for business leaders to reframe our approach. When we collected data from over 300 organizations around the globe, we found that the correlation between business performance and employee engagement outcomes is almost linear. For those companies that appear in the top ranks of both of these sets of results, we typically see a 5-7% increase in business performance.

The power lies in appreciation and the benefits are tangible for employee happiness and business results.

Related: Do your employees feel recognized? 10 Powerful Ways to Set Up Employee Recognition Programs

What does workplace assessment really mean?

In today's landscape, where workers expect more from their employers and colleagues, taking time to show appreciation it is key. Appreciation is what makes an employee feel truly valued outside of their contributions. It's not just about their achievements.

Recognition is about what people do, while appreciation is about who they are. Both have a big role to play in building employee well-being, but appreciation is the key to self-actualization and an employee who feels truly appreciated.

It has been found that the people who are known are 23% more effective and productive, yet people who value and appreciate themselves are 43% more effective and perform better. When employees feel truly valued, businesses have a productive and engaged workplace with people who want to stay and are motivated to succeed. This is not only the right thing to do, but essential to your bottom line.

The move towards creating one the culture of evaluation it no longer includes traditional HR practices that are seen as transactional and fall short of the mark. Now, appreciation should be a proactive strategy that builds a more authentic work environment and ultimately increases overall well-being.

Managing well-being through assessment

There are many variables that go into building our overall well-being, both at work and in our personal lives, but appreciation is the epicenter. Building a successful culture of appreciation requires a well-rounded people strategy that addresses physical, mental, nutritional and financial well-being needs as well – each aspect is holistic.

According to Maslow's Hierarchy of Needs, a person will feel most valued when all other needs are met. which include physiological (discounts and benefits), safety and security (physical, mental, financial and nutritional well-being), love and belonging (culture and connection), self-esteem needs (recognition and rewards), with each level building up to top esteem, fulfilling self-actualization.

It is important to prioritize all needs accordingly. For example, an employee will not feel truly valued if they never feel recognized or if they feel they are not being compensated fairly. When it comes to wellness, it's important to consider evaluation as the bigger picture, elevating the benefits, practices and workplace culture to help employees reach the top of the pyramid. With a foundation of appreciation laid, well-being can flourish.

Related: Why saying 'Thank you' is more important than giving employees a raise

How do we get there?

When looking to build a culture of appreciation in the workforce, wellness benefits are a crucial piece of the puzzle. Considering the total experience of employees according to Maslow's Hierarchy of Needs, management must evaluate their offerings to ensure that all needs are met.

Start that process by asking: What attracts employees to a company/role? Where do people want to stay? How do they want to build and grow their career? Is working for us supporting employee well-being or hindering it? Do managers have the tools and training they need to ensure employees understand the impact of their work?

Another way to show appreciation to employees is to get to know your people and invest in their lives, inside and outside of work. This helps to encourage meaningful relationships within the workplace and management can tailor their approach to wellbeing based on the specific person, showing care in a way that resonates and building a foundation of trust, support and appreciation.

There are many tangible actions that management and employees can take to create a workplace centered around appreciation. Among the employees who felt truly valued, they listed strong communication with a manager (58%) and recognition of personal milestones (51%) at the top.

That said, it is essential to build a people-centric management culture where companies provide training, resources and tools that support business leaders and managers in their efforts to cultivate relationships with their teams and meet each individual where they are – and as a whole person, not just a number within an organisation. When leadership prioritizes this mindset, OnePoll found that valued employees are 10 times more likely to feel they belong in their organization – and another 53% of people said they feeling appreciated it would help them stay longer in their company.

Finally, evaluation needs a seat at the boardroom table. For teams looking to take this next step, you'll first need leadership buy-in to ensure employee appreciation remains a top-down priority.

One way to do this is by appointing a chief assessment officer, giving someone in the C suite a seat at the table to focus on employee wellbeing and advocating for the development of a people-focused tactical strategy to foster a true culture of appreciation within the company.

Related: The best way to do employee appreciation day is more than once a year

Evaluation evaluates

After all, people thrive in an environment where they are valued and respected by those around them. This sense of worth carries over into their work and into the wider world, creating a butterfly effect that empowers and drives success in both their personal and professional lives.

When it comes to the workplace, assessment is limitless and all-encompassing. While it may start small, it can grow exponentially, contributing to the collective well-being of employees. Like the expansion of ripples in a pond, appreciation is appreciated.