As Thanksgiving arrives in the U.S. and similar festive holidays around the world begin, it’s a good time to consider what gratitude is and what role it should play in business relationships. As we’ll see here, gratitude is not merely a feel-good gesture. It is a transformative force that can profoundly impact organizational success.
Leaders who sincerely express gratitude foster stronger relationships, inspire positive word-of-mouth, and drive meaningful business growth.
Here’s how.
Why gratitude matters in business
Gratitude in business isn’t about superficial gestures like automated thank-you emails or company-branded holiday gifts. It’s about creating and sustaining deep culture of appreciation. In such a culture, employees, partners, and clients feel seen, valued, and respected. According to a Glassdoor survey, employees who feel appreciated are more engaged and productive, with 81% stating they are motivated to work harder when their contributions are recognized.
Gratitude yields quantifiable returns. Consider the case of Market Basket, a New England-based grocery chain. As Martha Teichner reported on CBS Sunday Morning, employees staged a company-wide protest when their beloved CEO, Arthur T. Demoulas, was ousted.
Why? Demoulas’s leadership style, steeped in gratitude and respect, had earned their loyalty. The outpouring of support ultimately led to his reinstatement, preserving the company’s values and financial stability.
Gratitude as a leadership skill in business
Gratitude is not an expendable soft skill. It’s an essential business asset. Leaders who openly acknowledge the contributions of their teams create a ripple effect of positivity and loyalty.
Focusing on “we,” not “me”
Janice Piacente served as a senior compliance officer at a globally iconic beverage company and devised an ingenious solution for getting the phone number for the company’s ethics and compliance hotline in front of everyone who worked there: putting the number on collectible bottles the company made.
But she refused to take credit for it.
“I just had the idea for it,” she told me, “but my team implemented it…They made my idea a reality.” Janice doesn’t deny that she played a role in the development of the innovative item. When she talks about the project’s success, she places the emphasis on the team’s effort. “The focus is on ‘we,’ not ‘me,” as she puts it.
Her authentic expressions of gratitude boosted morale, fostered innovation, and earned her team’s unwavering loyalty.
The benefits of building gratitude into a business’s culture
The Pegasus Logistics Group, which won the 2024 Thnks Gratitude in Business Award. Their “People on Point” rewards system have created a supportive environment in which employees thrive. Such initiatives underscore the strategic value of embedding gratitude into organizational culture.
The ROI of gratitude in business
How does gratitude translate into financial results? First, gratitude improves retention. Employees who feel appreciated are 50% less likely to leave their jobs, according to the previously cited study by Glassdoor. Reduced turnover means lower recruitment and training costs and higher institutional knowledge retention.
Second, gratitude strengthens customer relationships and promotes loyalty. According to a Harvard Business Review article, “The One Number You Need to Grow”, customers who feel appreciated are more likely to remain loyal and recommend a company to others. This loyalty directly contributes to increased revenue and market share. This loyalty directly contributes to increased revenue and market share.
Finally, gratitude drives innovation. Employees in gratitude-rich environments are more willing to take risks, share ideas, and collaborate—all essential ingredients for innovation. Research supports this connection: the meta-analysis “The Benefits of Frequent Positive Affect: Does Happiness Lead to Success?” by Sonja Lyubomirsky, Laura King, and Ed Diener, published in American Psychology Association’s journal Psychological Bulletin reveals that positive emotions, including gratitude, significantly enhance success outcomes in work, health, and relationships.
How to build a culture of gratitude in your business
Here are three practical steps for creating a culture of gratitude in your organization.
- Make Recognition Personal and Specific: Avoid generic acknowledgments like “Great job, team!” Instead, highlight specific contributions. For example, “Your detailed analysis of last quarter’s performance helped us refine our strategy and save $50,000.” Simon Sinek, in Leaders Eat Last (Portfolio, 2014), writes, “Leadership is not about being in charge. It is about taking care of those in your charge.” Specific recognition shows employees they are genuinely valued, which in turn fosters trust and engagement.
- Lead by Example: Gratitude starts at the top. Leaders who regularly express thanks, both publicly and privately, set a powerful precedent. Daniel Pink, in Drive (Riverhead Books, 2009), emphasizes the importance of purpose and intrinsic motivation, noting that “we leave the realm of carrots and sticks” when we tap into deeper values. For example, publicly praising a team member during meetings demonstrates a leader’s commitment to creating a positive culture.
- Create Opportunities for Peer Recognition: While top-down gratitude is essential, peer-to-peer recognition fosters camaraderie and strengthens team dynamics. A study published in the Strategic HR Review entitled “The Power of Peer Recognition Points: Does It Really Boost Employee Engagement?” explores how peer recognition systems significantly boost employee engagement by fulfilling the psychological need for appreciation. These protocols not only enhance morale but also reduces turnover by encouraging mutual respect. Platforms like Slack can facilitate peer shoutouts, which give rise to a more connected and motivated workforce.
The power of handwritten thank-you notes in business
When was the last time you sent a handwritten thank-you note? They take only a few minutes to create, but recipients often keep them for years I put mine on a wall near my office, and every time I look at them, I think fondly of the people who wrote them. Sometimes it prompts me to reach out for new business opportunities with them too. Here’s how you can make writing thank-you notes a happy habit.
The takeaways
- Gratitude significantly boosts employee engagement and productivity, with 81% of employees stating they work harder when their contributions are recognized.
- Gratitude fosters innovation, morale, and loyalty, as Janice Piacente’s team-oriented leadership style attests.
- Gratitude-driven programs like Pegasus Logistics Group’s “People on Point” reward system create thriving workplace cultures and strong employee retention.
- Financial benefits include enhanced customer loyalty and increased revenue, supported by findings from Harvard Business Review’s “The One Number You Need to Grow”.
- Grateful leadership helps retain top talent by reducing turnover costs and improving organizational stability.
- Extending gratitude to external stakeholders—customers, vendors, and community partners—builds lasting goodwill and solidifies business relationships.
- Market Basket’s employee-driven loyalty illustrates gratitude’s transformative power in business.
- Gratitude is essential for fostering teamwork, reducing costs, and creating a thriving, sustainable organizational culture.
- Sending handwritten thank-you notes regularly is a great way to remain top-of-mind with valued people in your life, and it’s nice to do for its own sake too.