A new survey highlights the importance of employee appreciation in the workplace, with 87 percent of employees indicating companies should recognize contributions with tangible tokens of appreciation.

The “2025 Workforce Study” based on insights from 1,500 U.S. employees, offers a comprehensive look at how gratitude, recognition and gifting transform workplace cultures, drive employee engagement and boost business success, according to gifting company Snappy.

According to the findings, appreciation shouldn’t be a one-day event, rather it should be “a year-round commitment that fosters connection, motivation and long-term retention in the modern workplace.”

Despite widespread employee interest in formal recognition, many companies fall short.

Only 37 percent of employees reported that their company celebrates Employee Appreciation Day and 66 percent of employees said that they would like their company to recognize the occasion.

The oversight represents a missed opportunity to strengthen company culture and reinforce employees’ sense of value, according to the report.

The study findings confirmed that employees feel more valued, motivated and connected to their company when they receive meaningful recognition.

For example, milestone recognition increases retention. A majority of respondents (79 percent) of employees said a birthday gift would make them feel appreciated and valued, while 67 percent indicated an annual anniversary gift would encourage them to stay in their role.

Leadership recognition is valued. Almost half (40 percent) of employees said that appreciation from their direct manager is the most meaningful.

When recognition comes from leadership, it reinforces the connection between employees and their organization, according to the gifting company.

Onboarding gifts can set the tone for engagement.

Onboarding gifts have emerged as critical touchpoints for new hires, according to the survey, with employees citing welcome gifts as one of the top ways companies can make them feel valued from day one.

A majority (85 percent) of employees reported that wearing branded swag with their company’s logo makes them feel proud of their organization’s mission, while 76 percent said it helps them feel more connected to their colleagues, fostering a shared sense of identity and culture.

The survey found that motivation leads to innovation.

When employees feel motivated:

• 34 percent engage more deeply with customers and clients.
• 30 percent become more creative and innovative.
• 17 percent are more willing to take on new projects.
• 16 percent are more likely to engage in collaborative work with colleagues.

Neglecting recognition has consequences, including:

• 42 percent of employees reported being less productive when they don’t feel appreciated.
• 30 percent identified feeling invisible or undervalued as a primary reason for losing motivation.
• 10 percent say a lack of recognition is a key factor in disengagement.

The study also found that 69 percent of employees work full-time in the office and57 percent prefer it that way.

Strong workplace relationships are a cornerstone of workplace satisfaction, according to the findings, with 75 percent reporting that they have friends at work and 72 percent saying they have long-term friends they originally met through work.

Companies that fail to prioritize appreciation risk lower productivity, disengaged employees and higher turnover, according to Snappy.

This year, Employee Appreciation Day falls on March 7.