In today's fast-paced business world, leaders are constantly searching for ways to motivate their teams and boost productivity. Many turn to traditional incentives like bonuses or perks, but there's a far more powerful tool at every leader's disposal that doesn't cost a thing: gratitude.
In "Leading with Gratitude," Adrian Gostick makes a compelling case for why expressing appreciation is one of the most impactful things a leader can do. He argues that gratitude, when practiced consistently and authentically, can transform workplace culture and drive remarkable results.
The book outlines eight simple yet powerful approaches leaders can use to harness the motivating force of gratitude. Through research, case studies, and practical advice, Gostick demonstrates how cultivating a culture of appreciation can energize employees, improve performance, and create a more positive work environment.
For leaders who may be skeptical about the power of gratitude in business, consider this eye-opening statistic: 81% of employees say they would work harder if their boss showed more appreciation for their efforts. Clearly, there is enormous untapped potential in learning to express gratitude more effectively.
In the following summary, we'll explore the key ideas and strategies Gostick presents for leading with gratitude. You'll discover how to solicit ideas from employees, build trust, practice empathy, celebrate small wins, tailor recognition to individual motivations, connect company values to daily work, and foster peer-to-peer appreciation. By the end, you'll have a roadmap for transforming your leadership approach and workplace culture through the practice of gratitude.
Soliciting Ideas from Employees
The Power of In-Person Communication
One of the most valuable yet underutilized resources in any organization is the collective knowledge and insights of frontline employees. These team members interact directly with customers, products, and processes every day. As a result, they often have unique perspectives and ideas that leaders may be unaware of.
Gostick argues that the best way to tap into this wealth of employee knowledge is through in-person communication. While surveys and suggestion boxes have their place, nothing beats face-to-face conversations for generating ideas and building relationships.
Kent Taylor, founder and CEO of Texas Roadhouse, exemplifies this approach. Despite having nearly 60,000 employees across almost 600 restaurants, Taylor makes a point of regularly connecting with staff at all levels. Each week, he calls a randomly selected store to chat with servers and get their unfiltered feedback on customer experiences. He even gives all his store managers his personal cell phone number.
This open line of communication allows Taylor to stay in touch with what's really happening in his restaurants. For instance, it's how he discovered that customers weren't enjoying the chain's mac and cheese dish. An area manager's daughter had actually made a book about why she disliked it! Without encouraging this kind of honest feedback, Taylor may never have known there was an issue.
Implementing and Acknowledging Ideas
Of course, soliciting ideas is only the first step. To truly motivate employees and demonstrate that you value their input, it's crucial to act on good suggestions when possible. Even if an idea isn't feasible to implement, take the time to explain why. This shows respect for the employee's contribution and encourages them to keep offering ideas in the future.
Equally important is acknowledging and thanking employees for their ideas, whether they're implemented or not. This simple act of gratitude boosts confidence and reinforces innovative thinking. Despite his large workforce, Taylor makes a point of writing personal thank you notes to employees who come up with great ideas.
The lesson is clear: leaders at all levels should prioritize in-person communication with their teams. By actively listening to employees, implementing viable suggestions, and expressing gratitude for their contributions, you'll tap into a wellspring of innovation while simultaneously boosting morale and engagement.
Building Trust Through the Benefit of the Doubt
The Importance of Assuming Good Intentions
When employees underperform or make mistakes, it's easy for leaders to jump to negative conclusions. We might assume laziness, incompetence, or even deliberate sabotage. However, Gostick argues that this knee-jerk reaction is often misguided and counterproductive.
Research conducted by Gostick and his co-author Chester Elton reveals that most employees genuinely want to do a good job. When they fall short, it's typically due to factors like inadequate training, lack of resources, or unclear direction from leadership.
By giving employees the benefit of the doubt and assuming positive intent, leaders can approach performance issues more rationally and constructively. Instead of getting angry, take a step back and try to identify what barriers might be preventing the employee from succeeding.
A Case Study in Empathetic Leadership
Gostick shares the story of Jasmine, a high-performing employee who started missing deadlines after being promoted to a new role. Her executive team initially concluded they had overestimated her abilities and were considering demoting her.
However, one leader decided to meet with Jasmine before taking drastic action. In their conversation, he discovered that Jasmine was so enthusiastic about her new responsibilities that she had taken on too many projects without knowing how to prioritize them effectively. She didn't need a demotion – she needed support and guidance on time management.
Once Jasmine received the proper support, she quickly began excelling in her new role. This example illustrates how assuming good intentions and investigating the root causes of performance issues can lead to much better outcomes for both employees and the organization.
Creating a Culture of Trust and Innovation
When employees know their leaders will give them the benefit of the doubt, it creates a culture of trust and psychological safety. This has several important benefits:
Increased transparency: Employees are more likely to proactively raise issues or admit mistakes, allowing problems to be addressed quickly before they escalate.
Open communication: Team members feel comfortable sharing ideas and feedback without fear of harsh judgment.
Enhanced innovation: A trusting environment gives employees the confidence to take calculated risks and propose creative solutions.
Garry Ridge, CEO of WD-40, exemplifies this approach by reframing mistakes as "learning moments." He encourages open discussion of both successes and failures so that the entire organization can learn from them.
By consistently assuming good intentions and approaching performance issues with empathy and curiosity, leaders can build a culture of trust that drives engagement, innovation, and overall success.
The Power of Empathy in Leadership
Empathy as a Key Driver of Team Performance
While many leaders focus on external motivators like bonuses or incentives, Gostick argues that empathy is actually the most powerful factor in determining team success. Empathetic managers tend to make better decisions, coach more effectively, and know how to engage their teams on an emotional level.
Unfortunately, research by management consulting firm DDI found that only 40% of managers demonstrate empathy effectively in the workplace. This represents a significant opportunity for improvement and competitive advantage for leaders willing to develop this crucial skill.
Developing Empathy Through Job Shadowing
One of the most effective ways to build empathy is by gaining firsthand experience of your employees' day-to-day work. Many leaders think they understand what their team members do based on job titles and descriptions, but the reality is often quite different.
Gostick recommends shadowing employees to truly grasp the challenges and nuances of their roles. This might involve:
- Observing their daily tasks and workflows
- Identifying obstacles they face in getting work done
- Noticing interpersonal dynamics and team interactions
- Understanding the skills and knowledge required for their job
By immersing yourself in your employees' work experiences, you'll gain valuable insights that can inform your leadership decisions and help you provide more meaningful support.
Asking the Right Questions
In addition to observation, it's crucial to engage employees in conversations about their work experiences. Some key questions to ask include:
- What aspects of your job do you find most frustrating?
- What accomplishments are you most proud of?
- If you could change one thing about your role or the company, what would it be?
These discussions create opportunities to acknowledge employees' contributions while also uncovering areas where you can help remove barriers or provide additional resources.
Making Time for Connection
Some leaders may feel they don't have time for activities like job shadowing or in-depth conversations with employees. However, consider the example of WD-40 executive Garry Ridge, who dedicates the first two hours of every workday to talking with his employees. This investment in relationship-building pays off through increased trust, better communication, and a deeper understanding of his organization's needs.
Empathy as a Learned Skill
It's important to recognize that empathy is not an innate trait that some people have and others don't. Like any skill, it can be developed and strengthened through consistent practice. Even if it doesn't come naturally at first, committing to daily acts of empathy will gradually enhance your ability to connect with and understand your team members.
While cultivating empathy may require a significant time investment, the payoff in terms of improved team performance and employee engagement makes it well worth the effort.
Celebrating Small Wins
The Power of Daily Progress
In most workplaces, major accomplishments like completing a big project or hitting a sales target are celebrated with fanfare. However, the small, day-to-day achievements that contribute to these larger successes often go unnoticed and unacknowledged.
Research by Steven Kramer and Harvard Business School professor Teresa Amabile has shown that employees are most motivated when they feel they're making meaningful progress each day. This means that recognizing and celebrating small wins can have a profound impact on team morale and productivity.
Simple Ways to Acknowledge Daily Achievements
Celebrating small wins doesn't have to be elaborate or time-consuming. Some easy ways to show appreciation for daily progress include:
- Leaving a quick "thank you" note on an employee's desk
- Sending a brief email acknowledging a specific contribution
- Verbally recognizing someone's effort during a team meeting
The key is to be specific and timely in your praise, connecting it directly to the action or achievement you're recognizing.
Involving the Whole Team in Celebration
While it's important for leaders to acknowledge small wins, involving the entire team in the process can amplify the positive effects. Some companies have implemented creative ways to do this:
- SnackNation in California holds a weekly meeting where employees can publicly acknowledge coworkers who have helped them.
- Other organizations encourage team members to send brief emails highlighting how they've overcome challenges and naming colleagues who assisted them.
These practices not only boost morale but also foster a culture of mutual appreciation and support among team members.
Looking Beyond Traditional Metrics
When celebrating small wins, it's important to recognize more than just quantifiable achievements. Consider acknowledging:
- Employees who remained calm and professional during a crisis
- Team members who helped mediate conflicts
- Individuals who consistently demonstrate company values in their work
By praising these less tangible but equally important contributions, you reinforce the behaviors and attitudes that contribute to a positive work environment.
The Inexhaustible Resource of Gratitude
One of the great things about gratitude is that it's an unlimited resource. Unlike financial bonuses or other material rewards, there's no cap on how often you can express appreciation. By making a habit of recognizing small wins on a daily basis, you create a workplace brimming with positive energy and motivation.
Remember, you don't need to wait for major milestones to show gratitude. By celebrating the small steps that lead to big accomplishments, you keep your team engaged and inspired throughout the journey.
The Importance of Consistent Positive Reinforcement
The Avocado Analogy
Gostick uses an interesting analogy to illustrate the importance of timely appreciation: gratitude is like an avocado. Just as an avocado quickly loses its appeal if not consumed when ripe, the impact of gratitude diminishes if not expressed promptly.
The Pitfalls of Delayed Recognition
Many managers make the mistake of saving up praise for annual performance reviews. This approach has several drawbacks:
- Small but significant contributions are often forgotten by the time reviews roll around.
- The positive impact of praise is diluted when paired with constructive criticism.
- Due to negativity bias, employees tend to focus more on negative feedback, even when it's balanced with positive comments.
The Power of Immediate Positive Reinforcement
Our brains are wired to respond strongly to positive reinforcement, especially when it's delivered promptly. Gostick shares a compelling example from a New York state hospital:
The hospital was struggling with hand hygiene compliance among intensive care staff. Despite prominent signage and readily available sanitation gel, only 10% of staff were washing their hands before and after patient interactions, even when they knew they were being observed.
To address this, the hospital installed electronic boards in the hallway that flashed "thank you" messages when staff used hand sanitizer. Within just four weeks, compliance skyrocketed to 90%. This dramatic improvement demonstrates the power of immediate positive reinforcement.
How Often Should You Praise?
Research by the Gallup Organization suggests that each team member should receive praise or recognition for good work about 35 times per year to stay motivated and positive. That's roughly three times per month.
For leaders with large teams, this frequency might seem daunting. However, remember that you can delegate some of this responsibility. Encourage your direct reports to regularly praise their team members, and lead by example in your own interactions.
The Momentum of Gratitude
By expressing appreciation as soon as you notice a positive contribution, you create a sense of progress and momentum within your team. This ongoing reinforcement helps maintain enthusiasm and engagement throughout projects, rather than just at their conclusion.
Consistent positive reinforcement also helps create a culture where team members feel valued and understood. This, in turn, can lead to increased job satisfaction, higher retention rates, and improved overall performance.
Remember, the goal is not to offer empty praise, but to genuinely recognize and appreciate the efforts and achievements of your team members, no matter how small they may seem. By making this a daily habit, you'll foster a more positive, productive, and motivated workforce.
Tailoring Gratitude to Individual Values
The Mismatch of One-Size-Fits-All Recognition
Many organizations take a standardized approach to employee recognition, relying on cash bonuses, gift cards, or company-wide awards. While these gestures are generally appreciated, they often fall short of their full potential impact because they fail to align with individual employees' personal values and motivations.
Understanding Diverse Motivators
A global study by psychologists Jean Greaves and Travis Bradberry identified 23 distinct workplace motivators, ranging from pressure to prestige. Every employee ranks these motivators differently based on their unique personality and values.
This means that a reward or expression of gratitude that deeply resonates with one team member might have little impact on another. For example, an employee who values autonomy and creativity might be more motivated by the opportunity to lead a new project than by a monetary bonus.
A Personal Example of Misaligned Recognition
Gostick shares a personal anecdote to illustrate this point. When he wrote his company's first leadership book, his colleague Chester Elton wanted to recognize the achievement. Elton, who highly values friendship and fun, organized a fancy gala event where Gostick was presented with an expensive watch.
While well-intentioned, this recognition didn't align with Gostick's personal values of autonomy, creativity, and family time. He would have been more motivated by extra time off to spend with loved ones or the chance to spearhead a new initiative. The watch, though valuable, went unworn.
Strategies for Personalized Gratitude
To make your expressions of gratitude more impactful, consider these approaches:
Ask employees directly about their motivations and what types of recognition they find most meaningful.
Pay attention to what excites or energizes different team members in their day-to-day work.
Use this information when allocating tasks or projects. For example, assign the employee who values fun to organize team-building events, or task the one passionate about social responsibility with improving office sustainability practices.
When expressing gratitude, tailor your approach to align with the individual's values. This might mean offering additional responsibilities to someone who craves growth, or public recognition for someone who values status.
The Power of Specific Praise
Regardless of how you express gratitude, make it specific. Generic praise like "great job" or "nice work" lacks the impact of detailed recognition. Instead, explain exactly what you're grateful for and why it matters.
For example, instead of simply thanking someone for "a great report," you might say: "I really appreciate the depth of research and attention to detail you put into this report. Your thorough analysis will be incredibly valuable as we make decisions about our new product line."
This level of specificity not only makes the praise feel more genuine but also reinforces the behaviors and qualities you want to encourage in your team.
By taking the time to understand what motivates each of your team members and tailoring your expressions of gratitude accordingly, you can significantly amplify the impact of your recognition efforts. This personalized approach demonstrates that you truly see and value each employee as an individual, fostering deeper engagement and loyalty.
Connecting Company Values to Daily Work
The Gap Between Values and Reality
Many organizations invest significant time and resources into crafting their core values. These are often prominently displayed on office walls or company websites. However, there's frequently a disconnect between these lofty ideals and the day-to-day realities of work life. As a result, company values can become little more than empty platitudes that employees struggle to connect with their actual responsibilities.
The Importance of Company Culture
Interestingly, a study by Johns Hopkins University found that 95% of job seekers prioritize company culture over financial compensation when evaluating potential employers. This statistic underscores the critical importance of not just having values, but actively living them within the organization.
Strategies for Bringing Values to Life
Gostick offers several approaches for bridging the gap between stated values and daily work practices:
Integrate values into onboarding: Make company values a central part of your orientation program for new hires. Use stories and examples to illustrate how these values play out in real work situations.
Prioritize values: Help employees understand how to navigate situations where values might conflict. For instance, if "quality" and "speed" are both core values, provide guidance on when to prioritize one over the other.
Recognize value-aligned behavior: Actively praise and reward employees when they demonstrate company values in their work. This reinforces the importance of the values and encourages others to embody them as well.
Case Study: The Spotlight Program
One investment management firm successfully brought its values to life through a "spotlight" program. Employees were encouraged to send thank-you notes to colleagues who demonstrated company values in their work. This led to a visible display of gratitude, with cubicles covered in messages of appreciation.
Interestingly, this program not only improved employee morale but also correlated with an increase in customer satisfaction. This suggests that when employees feel more connected to company values, it positively impacts their interactions with customers as well.
Leading by Example
It's crucial that employees see values as applicable to everyone in the organization, from entry-level staff to top executives. As a leader, make it a priority to model these values in your own behavior and decision-making. When leaders embody company values, it sends a powerful message about their importance and relevance.
Using Gratitude to Reinforce Values
Expressing gratitude is an excellent way to reinforce company values. When thanking employees, explicitly connect their actions to specific values. For example: "Thank you for staying late to help the team meet this deadline. Your dedication really exemplifies our value of 'going above and beyond for our clients.'"
By consistently linking expressions of gratitude to company values, you help employees see the direct connection between these guiding principles and their daily work. Over time, this approach can transform abstract values into lived experiences that shape the culture of your organization.
Remember, the goal is not just to have values, but to create a work environment where these values are actively practiced, celebrated, and woven into the fabric of daily operations. When done effectively, this alignment between values and actions can become a powerful driver of employee engagement and overall organizational success.
Fostering Peer-to-Peer Gratitude
The Power of Colleague Appreciation
While gratitude from leaders is important, Gostick argues that peer-to-peer appreciation can be even more powerful in shaping workplace culture and motivation. He shares a charming anecdote about an IT department where employees turned their leader's childhood G.I. Joe action figure into a traveling trophy. Team members would pass Joe along to recognize colleagues who had gone above and beyond in supporting the team's goals.
This simple, employee-driven gesture exemplifies the positive energy that can be generated when coworkers take the initiative to appreciate each other. It injects an element of fun and camaraderie into the workplace, helping to counterbalance the inevitable stress and pressure of work life.
The Influence of Peers
The importance of peer recognition is backed up by research. A poll of 1,500 employees across Europe, conducted by Simple Talent, found that peers have twice as much influence on employee engagement as line managers do.
This might seem counterintuitive at first. After all, managers are the ones who conduct performance reviews and determine raises and promotions. However, there are several reasons why peer appreciation carries so much weight:
Authenticity: Praise from colleagues often feels more genuine because there's no hierarchical obligation behind it.
Specific knowledge: Peers often have a more detailed understanding of each other's day-to-day work and challenges.
Frequency: Coworkers have more opportunities for daily interactions and can offer more immediate recognition.
Trust and respect: Employees often have closer relationships with their peers than with their managers.
Benefits of Peer-to-Peer Gratitude
When colleagues regularly express appreciation for each other's contributions, it creates several positive outcomes:
Stronger team bonds: Mutual recognition reinforces trust and dependability among team members.
Improved morale: Feeling valued by colleagues boosts overall job satisfaction and engagement.
Enhanced collaboration: When people feel appreciated, they're more likely to go out of their way to help their coworkers.
Increased retention: Companies with robust peer recognition programs often report higher employee retention rates.
Implementing Peer Recognition Systems
As a leader, you can foster a culture of peer-to-peer gratitude by implementing systems that make it easy for employees to recognize each other. Some ideas include:
Digital platforms: Use tools like Slack or Microsoft Teams to create channels dedicated to peer appreciation. Encourage employees to publicly acknowledge their colleagues' contributions throughout the day.
Recognition boards: Set up physical or digital boards where employees can post notes of thanks or praise for their coworkers.
Peer awards: Implement a program where employees can nominate their colleagues for recognition, with winners announced at team meetings or company-wide events.
Gratitude challenges: Organize short-term initiatives that challenge employees to express appreciation to a certain number of colleagues within a given timeframe.
Leading by Example
As with any cultural initiative, leaders play a crucial role in fostering peer-to-peer gratitude. Make a point of publicly recognizing your team members' contributions and encouraging them to do the same for each other. When employees see their managers actively participating in and valuing peer recognition, they're more likely to embrace the practice themselves.
The Ripple Effect of Gratitude
By cultivating a environment where colleagues regularly express appreciation for each other, you create a positive feedback loop. Gratitude begets more gratitude, leading to a work atmosphere characterized by mutual respect, support, and positivity. This, in turn, can drive higher levels of engagement, creativity, and overall performance.
Remember, the goal is to create a workplace where gratitude flows freely in all directions – not just from the top down, but between peers at all levels of the organization. When you achieve this, you'll have built a truly positive and motivating work culture that can become a significant competitive advantage for your organization.
Conclusion: The Transformative Power of Gratitude in Leadership
Throughout "Leading with Gratitude," Adrian Gostick makes a compelling case for the profound impact that consistent, authentic appreciation can have on workplace culture and performance. By implementing the strategies outlined in this book, leaders can unlock the full potential of their teams and create thriving, engaged organizations.
Let's recap the key ideas explored:
Soliciting ideas from employees: By actively seeking input from frontline staff and acknowledging their contributions, leaders can tap into a wealth of innovative ideas while boosting engagement.
Building trust through the benefit of the doubt: Assuming positive intent and approaching performance issues with empathy creates a culture of psychological safety and open communication.
Practicing empathy: Taking the time to understand employees' day-to-day experiences and challenges allows leaders to provide more meaningful support and recognition.
Celebrating small wins: Acknowledging daily progress keeps teams motivated and maintains momentum throughout long-term projects.
Providing consistent positive reinforcement: Offering timely, frequent praise is more effective than saving up recognition for formal reviews or major milestones.
Tailoring gratitude to individual values: Understanding what motivates each team member allows leaders to offer more meaningful and impactful recognition.
Connecting company values to daily work: Using gratitude to reinforce how employees' actions align with organizational values brings those principles to life.
Fostering peer-to-peer gratitude: Encouraging colleagues to appreciate each other creates a positive feedback loop of recognition and support.
By integrating these practices into their leadership approach, managers at all levels can create a work environment characterized by trust, respect, and mutual appreciation. This not only leads to happier, more engaged employees but also drives tangible business results through increased productivity, innovation, and retention.
It's important to remember that cultivating a culture of gratitude is an ongoing process, not a one-time initiative. It requires consistent effort and commitment from leaders to model the behavior they want to see in their teams. However, the payoff in terms of improved morale, stronger relationships, and better overall performance makes this investment well worth it.
As you reflect on the ideas presented in "Leading with Gratitude," consider how you can begin implementing these strategies in your own leadership practice. Start small, perhaps by committing to acknowledging one team member's contribution each day, or by asking employees about their personal motivations. Over time, these small actions can snowball into significant cultural shifts within your organization.
Remember, gratitude is a powerful yet often underutilized tool in the leader's toolkit. By harnessing its potential, you can transform your workplace into an energized, positive environment where people are excited to contribute their best work every day. In doing so, you'll not only drive better business outcomes but also create a more fulfilling and meaningful work experience for yourself and your team.