Why is Employee Appreciation Important?

Why is Employee Appreciation Important?

Why is Employee Appreciation Important?

Employee appreciation is all the rage for team leaders and business owners. You may have heard of the benefits and even incorporated some aspects yourself, but why is employee appreciation important in the first place?

Employee morale is crucial to the success of every business, as it leads to greater productivity and an increased likelihood of employee retention. Keeping the people who matter most to the success of your operations is one of the key reasons why employee appreciation is important.

You may be wondering about the best ways to incorporate this concept and why employee appreciation is important. There are several methods to help your business engage in employee appreciation, from swag giveaways to team-building events.

We have created this guide on why employee appreciation is important, including tips on how to give out swag in a company, hosting appreciation events, and more.

There is a lot to learn, and you will finish this article with plenty of new office event inspiration and company swag ideas under your belt. Let’s kick things off by defining what employee appreciation is, along with a few misconceptions you will want to avoid.

What is “Employee Appreciation”?

Employee appreciation is an umbrella term that encompasses various actions businesses, managers, and organizational leaders take in order to recognize the efforts of their employees.

This can manifest in several forms, from useful employee gifts commemorating a major goal being met to office parties for major life events like birthdays, baby showers, and company anniversaries.

Businesses can also engage in employee appreciation through formal incentives like benefits packages, bonuses, and paid time off. You can even show employee appreciation through professional development and training, which helps establish a long-term career track for employees to strive for.

However, it is crucial to differentiate between the baseline and meaningful employee appreciation gifts and events. Offering a barebones benefits package and “gifts” that serve no purpose can even backfire and cause your employees to harbor resentment.

The difference between lackluster “gifts” and loyalty-inspiring employee appreciation practices is night and day. It’s why stepping up employee swag is so vital to the success of your business, which is exactly what we are going to discuss next.

Why is Employee Appreciation Important?

Now that you know how to define the concept, why is employee appreciation important for businesses to keep in mind?

Whether through fun events or rewarding outstanding work, these displays of employee appreciation can motivate your staff. That motivation helps boost productivity and ensures employees feel recognized.

In the long term, these acts of employee appreciation can keep employees happy at your company, lowering attrition rates and attracting new talent.

Workplace Morale

When business owners ask us - why is employee appreciation important? We point towards workplace morale first, and for a good reason.

Your staff needs to feel valued and respected for them to remain productive. Failure to recognize their efforts can lead to them doing the bare minimum while spending more time browsing job boards on company time. 

In severe cases, employees may even begin contributing to a toxic workplace environment by venting their lack of recognition to coworkers. This can create a negative feedback loop that causes long-term problems for your office atmosphere.

Employee Retention

Keeping your employees happy in the long term is crucial to keep them from leaving your company for greener pastures. In the past, companies were able to turn a blind eye to employee appreciation by providing job security and financial incentives, but demographic shifts have flipped the script.

Younger generations, including Millennials and Gen Z, weigh work-life balance much higher and show greater willingness to switch companies when these needs are not being met. Therefore, it is essential to offer benefits, including displays of employee appreciation, to avoid high turnover rates.

Increased Productivity

Employee appreciation acts help bolster productivity, providing motivation to your staff. Employees are much more likely to go above and beyond for your company when they feel recognized and appreciated.

The best gifts for your employees are timed to inspire productivity, whether you are celebrating a major goal being met or offering encouragement for an upcoming project. Pairing employee and intern gifts with positive feedback or office events ensures your company’s output always runs at peak efficiency.

Attracting Talent

Some businesses believe that allocating money to an employee appreciation and swag budget is a waste of resources, but that would be a short-sighted viewpoint. Employee appreciation acts are not just vital for current employees.

With the rise of job board websites like Indeed and Glassdoor, along with social media, the workforce has greater insights into workplace atmospheres than ever before. Employees that partake in office events and receive appreciation gifts are likely to share their positive experiences on social media, job boards, and with colleagues.

This can serve as a way to attract high-level talent to your company without needing to over-leverage your budget on salary or expensive headhunters.


Even armed with the best employee swag ideas, you may naturally be wondering how these events and giveaways affect your budget. Thankfully, long-term profitability is one of the main reasons why employee appreciation is important.

First, most employee appreciation events and office swag ideas are affordable, even if you opt for luxury swag bag ideas. In fact, gifts to employees are tax deductible up to $25 per employee, making them a no-brainer.

The number on your bottom line plays just one part of the equation, however. Our discussion above included four factors that are crucial to the long-term profitability of your operation. Positive office morale, reduced employee turnover, efficient employee productivity, and attracting new talent all help bolster the output of your operations.

Overall, engaging employee appreciation keeps your staff satisfied, helping prevent long-term stress in your management practices. 

Knowing the Importance of Employee Appreciation, How Can Your Business Incorporate it?

Now that you have a good grasp on the many reasons to give employees gifts and show appreciation, what are the best ways to engage in employee appreciation?

There are several ways to do so, from consistent and repeated encouragement and recognition to office events and swag giveaways. You can adapt these methods to fit the culture and budget of your company, so feel free to brainstorm as we go through each idea in detail.

Creating a Culture of Appreciation

Creating a culture of appreciation involves making employee recognition a regular part of the workplace culture. This can be done by encouraging managers and employees to recognize and appreciate each other's contributions.

You can also enact formal recognition programs or provide training and resources to help managers show appreciation effectively. Incorporating these acts grows workplace morale and contributes to a positive work environment.

Simple Recognition Methods

Sometimes, a little act goes a long way. Small displays of appreciation like thank you emails and handwritten notes are excellent habits to build as part of employee appreciation processes.

These further build a culture of appreciation and help your employees strive to meet future productivity goals.

Appreciation Events or Employee Appreciation Days

Events and employee appreciation days are some of the best tools in a manager or business owner’s toolkit when it comes to establishing a positive workplace environment. But why is employee appreciation day important?

These days offer a formal way for businesses to recognize and honor employees, including through team-building exercises, company outings, and catered meals. They are also the perfect time to distribute productivity awards and help employees recognize one another for their hard work.

In addition to employee appreciation days, office events commemorating events like birthdays, baby showers, or employee anniversaries are another fantastic way to show appreciation. Employees will feel recognized and appreciated when major events in their life are honored by their company, increasing their productivity and morale in the long term.

Rewards and Incentives for Performance

Rewards and incentives for performance, such as giveaways, bonuses, or events, can effectively show appreciation for employees who have gone above and beyond. By tying rewards to performance, you can motivate employees to work harder and become more productive while showing appreciation for their contributions.

Swag Giveaways as a Token of Appreciation

Finally, gifting and swag giveaways offer one of the most remarkable ways for you to show appreciation to employees. Gifting can apply anywhere from onboarding new employees and providing a gift box to welcome them to the company to offering custom swag boxes to recognize a significant goal being met.

There is no bad occasion to give away gifts to your employees, and you can even offer branded merchandise as part of a gift box to help build brand loyalty.

There are so many ways to show employee appreciation, so be sure to incorporate as many of these methods as possible for the best results. 

With the benefits laid out for you, you may be wondering where to order company swag or how to create a gift box. We also have you covered there, so read on for our insights into the best corporate gifting company!

Our Custom Branded Swag Boxes: a Unique Way to Show Appreciation for Your Employees

Employee appreciation is essential for all businesses, so you want to find creative ways to keep your employees happy that go far beyond the bare minimum. We have the perfect answer that emphasizes creativity: our employee gift boxes right here at Swag Bar!

Whether you want to bring your new hire gift ideas to life with a new hire welcome kit or you are seeking to throw an unforgettable office party, we have everything you need.

Why Partner With Swag Bar?

We are honored to have been trusted again and again by major brands like Crayola, Opendoor, and Cisco, as our process is tailor-made to make employee appreciation and gifting simple and fun!

We begin by sourcing only premium-quality products. Unlike many corporate gifting sites where you are bombarded with hundreds of different drink koozies and pencils, every product in our inventory is hand-picked. This ensures employees will actually use everything you gift to them, boosting their appreciation for your company.

Additionally, we are committed to sustainability by donating 5% of our profits to help clean waterways while working towards a goal of net neutrality. 

Once you pick out a swag box idea you love - or create your own - you will be paired with a member of our dedicated design team. We will ensure your swag is designed exactly to your specifications, and you can always tweak our mockups or just ask us for design suggestions to guarantee perfection.

Speaking of guarantees, we also offer a 100% satisfaction guarantee along with risk-free ordering through a cancellation policy. Starting an order with us allows you the flexibility and creativity to bring your swag ideas to life!

Some of Our Favorites for Employees

We have set out to cultivate an inventory of products that is simple to browse while also giving you the option to create your own customized packs with the help of our design team.

If you are looking for sustainable swag ideas, we highly recommend our Eco-Friendly gift box. It includes several fabulous products made of recyclable material, including a bamboo drink tumbler, knit wool ankle socks that are customizable, and plant-based snacks.

Our Happy Hour gift box is also jam-packed with everything you and your employees need for a post-work company outing. The pack includes drink coasters, a cocktail kit, and drinkware that can be personalized with your brand’s logo.

The best part about Swag Bar is the infinite possibilities that come with creating your own swag box with the help of our dedicated design team. We offer several classes of products, from drinkware and customizable apparel to fun office desk games, electronics, and more.

Creating your own custom pack and bringing your tech swag ideas to life is simple with our online tool that takes just minutes. Of course, you can also reach out to our dedicated customer support or design teams at any point, and we can go over all the possibilities in as much detail as you want.

For unique gifts that boost productivity and morale, there is no better choice than employee swag boxes, so check out our offerings today!

Final Thoughts on Why Employee Appreciation is Important

By now, you are surely inspired with motivation to enact new employee appreciation processes in your business. Let’s recap things to help you in your brainstorming.

Why is employee appreciation important? Keeping and attracting talented workers, along with increased morale and productivity comprise just some of the many benefits. 

In addition to understanding why employee appreciation is important, there are many ways to incorporate these concepts into your company. This includes employee appreciation days, events, and swag giveaways.

Swag Bar is the #1 home for corporate gifting. With a dedicated design team and several premium quality products that offer creative flexibility, it is no surprise we are the trusted supplier for massive worldwide brands.

We also offer a way to bring your corporate gift box ideas to life. Some of our offerings include client gift boxes, company gift boxes, branded gift baskets, and virtual event gift boxes that serve as an excellent way to show appreciation to the people who matter most to the success of your business.

In addition to answering your questions like - why is employee appreciation day important - we also have covered everything you need to know about corporate gifting in our blog. Check out our previous articles on swag meaning in business and the origination of swag as a concept.

Otherwise, if you are ready to craft a sustainable gift box that will wow your employees and keep them productive and satisfied, our online design tool is your best bet. Start designing your custom pack, or contact our team for a personalized recommendation today!