Employee Recognition vs. Appreciation: Why They Matter and How to Take Action
- By Lex Flamm
- Reading Time: 6 mins.
I started to understand employee recognition vs. appreciation when I landed my first “real” office job in my early 20s. It came with a cubicle (which I was extremely excited to decorate) and weekly all-hands meetings. One highlight of those meetings was “the horseshoe moment.”
The Horseshoe Moment: Recognition or Appreciation?
The horseshoe was a plastic trophy shaped like the company’s horseshoe logo.* Every week, the employee currently holding the horseshoe would step into the middle of our huddle and say something like, “I’m passing the horseshoe on to Kyle. He really helped me out with my spreadsheets this week, and he picked up some of my work when I was out sick. Thanks, Kyle, I appreciate you!” Then, everyone would clap and cheer as the horseshoe changed hands.
It took me about three months to earn the horseshoe for the first time. When I did, I was so excited that I took a photo and sent it to my husband. For the rest of the week, it sat in a place of honor on my desk and made me smile every time I looked at it.
So, here’s my question for you: Is the horseshoe moment an example of recognition, or appreciation? Let’s talk through it.
Employee Recognition vs. Appreciation
I didn’t know it at the time, but the horseshoe was a classic example of employee recognition—not appreciation, even though the phrase “I appreciate you” often came up in the handoff. Here’s a quick look at the difference between the two terms based on their official Miriam-Webster dictionary definitions.
- Recognition – special notice or attention; to acknowledge formally; to acknowledge or take notice of in some definite way, such as with a show of appreciation
- Appreciation – a feeling or expression of admiration, approval, or gratitude; judgment; evaluation, especially a favorable critical estimate
There’s definitely some overlap between these two definitions, and we often use them interchangeably. But the difference for business leaders and HR professionals boils down to this quote from author and speaker Mike Robbins:
“In simple terms, recognition is about what people do; appreciation is about who they are.”
You can also think of it this way: You recognize an employee’s work; you appreciate the person doing that work.
The Benefits of Employee Appreciation and Recognition
We all know that compliments and praise feel good, but they can have an outsized effect on worker wellbeing. According to a 2024 Gallup and Workhuman survey of more than 4,000 workers, employees who feel seen and valued at work are more engaged, less likely to burn out, and less likely to leave their jobs.
Data collected in 2023 by the same companies also found that workers who feel recognized perform better, are less stressed, and are happier with their pay. That’s a lot of positive return—so let’s talk about how you can unlock it.
Examples of Employee Recognition
The horseshoe moment counts as employee recognition because the winner of the horseshoe was acknowledged formally in front of the whole company. They also got a concrete show of appreciation in the form of that plastic trophy.
Here are a few other examples of employee recognition in the workplace, plus insight into who gives employee recognition and when you might offer it.
Types of Employee Recognition
- Promotions
- Bonuses
- Awards and prizes
- Raises
- Employee appreciation gifts
- Public shout-outs (in team meetings, in memos, on company social media, etc.)
Who Gives Employee Recognition
- Company leadership
- Management
- Coworkers
Key Times to Recognize Employees
- Work anniversaries
- Successful performance reviews
- Completions of big projects
- Completions of challenging tasks
- Rave reviews from clients
- Achieving goals
- Solving problems
- Taking on extra responsibilities
This isn’t a comprehensive list, but it’s a great place to start if your office is building out an employee recognition program. Now, let’s look at the complement to recognition: appreciation.
Examples of Employee Appreciation
Where recognition is typically formal and public, appreciation is more personal and private. As you can see in the definition, it’s based on communicating emotions rather than celebrating achievements. Almost any positive feedback an employee gets can fall into the appreciation bucket, but here are a few examples.
Types of Employee Appreciation
- Thank-you notes, emails, and chats
- Words of praise (e.g. “I’m so glad to have you on the team—you always make us laugh!” or “I really appreciate how hard you’re working on this project.”)
- Employee appreciation gifts
- “Thinking of you” treats
Employee appreciation gifts fall under both recognition and appreciation because their function depends on the occasion. If a salesperson reaches their quota for the first time and their manager surprises them with a gift to celebrate, that’s recognition. If they surprise their whole team with a box of fresh fruit and snacks to share on a random Tuesday, that’s appreciation.
Who Gives Employee Appreciation
- Company leadership
- Management
- Coworkers
Key Times to Recognize Appreciation
- Personal milestones (birthdays, wedding days, the birth of a child)
- Positive habit changes
- Just because
Appreciation may seem like an extra step you don’t have to take if you’re already giving employees recognition. But it can have a big effect on wellbeing all on its own. According to research from Gallup and Workhuman, “employees who receive recognition for life events and workplace milestones—both unrelated to performance—are three times as likely to strongly agree their organization cares about their wellbeing as those who don’t.”
Employee Recognition vs. Appreciation: Quick Quiz
Hopefully, you have a solid grasp of the difference between appreciation and recognition now. Let’s test it out with a quick game of “Is It Appreciation or Recognition?”
Is It Appreciation or Recognition?
- One of your employees is about to head out on maternity leave, so you coordinate a surprise baby shower for them.
- A client success manager on your team solves a problem for a big client quickly and efficiently. You send them an email praising them for their work, and CC company leadership.
- One of the designers on your team stays late to help you complete a project by a tight deadline. The next morning, they arrive at work to find a note on their desk that says, “Thank you so much for staying late yesterday! I’m lucky to have such a compassionate, hardworking, and talented coworker.”
Answers: 1. Appreciation, 2. Recognition, 3. Appreciation
Does the Difference Between Appreciation and Recognition Really Matter?
The difference between these two terms doesn’t matter. What does matter is that you do plenty of both things in your workplace.
Employees thrive when they feel seen and valued on both a personal level (appreciation) and a professional level (recognition). As long as you’re offering plenty of each, there’s no need to worry about the labels. Here are a few best practices to help you get started.
FAQs
1. What is the difference between recognition and appreciation?
Recognition is typically performance-centered, while appreciation is human-centered. You can remember employee recognition vs. appreciation this way: You recognize an employee’s work; you appreciate the person doing that work.
2. What is an example of recognition?
Giving an employee a gift for their work anniversary is an example of recognition. Another example would be shouting out an employee in a company meeting for completing a major project.
3. What is an example of appreciation?
Buying a birthday card for your coworker and asking their team to sign it would be an example of appreciation. You can also show appreciation by complimenting an employee’s personality or effort—something unrelated to their performance.
4. Why do employees need recognition and appreciation?
Recognition and appreciation are complementary strategies. Together, they can give employee wellbeing a boost and reduce burnout, turnover, and stress in the office.
*It wasn’t actually a horseshoe—I’ve changed the logo here for privacy purposes.
