Perceptyx Blog

Stop Giving Gift Card Feedback. Start Giving Meaningful Recognition.

Written by Bradley Wilson, Ph.D. | November 4, 2024 6:48:15 PM Z

We’ve all heard the phrase “feedback is a gift.” But, like any gift, the value it holds depends on how thoughtfully it’s given. Imagine this scenario: for my wife’s birthday, I give her a Starbucks gift card. It's convenient, practical, and something she could easily use. But how do you think she’d feel? Probably not great. A generic gift like that doesn’t reflect the depth of our relationship or the knowledge I have of her personal likes and needs. It lacks the thoughtfulness and care that should accompany a meaningful gift.

This is particularly critical in 2024, as workers face anxiety around economic uncertainty, political changes, and AI-driven job concerns. Our research shows that recognition's ability to create a sense of belonging and optimism about one's future in an organization is actually more powerful than compensation in determining whether employees will stay.

Now, think of this analogy in the context of feedback in the workplace. If you give every employee the equivalent of a “Starbucks gift card” in your feedback — something generic, impersonal, and safe — they’re unlikely to feel truly seen, valued, or understood. In fact, they may feel like just another cog in the machine, disconnected from their potential and purpose. If we really want feedback to be a gift, we must ask ourselves: what makes a good gift?

What Makes a Gift Meaningful?

A meaningful gift shows that the giver has paid attention, understands the recipient’s preferences, and has taken time to select something that resonates with who they are as a person. It’s personalized, thoughtful, and signals a genuine investment in the relationship.

When it comes to feedback, we should approach it the same way. Employees don’t just want surface-level comments about their work. They want feedback that feels tailored to their individual growth, goals, and strengths. Just like a well-thought-out gift, feedback should reflect a deeper understanding of the person receiving it.

Generic Feedback: The Safe Option

Giving a Starbucks or Amazon gift card to someone may feel like a “safe” choice, just like offering generic feedback can feel like the easy route. Saying “Good job” or “Keep it up” may avoid confrontation or discomfort, but it also misses the opportunity to truly connect with and inspire your coworkers. It's a low-effort way of showing appreciation or addressing performance, and while it’s better than nothing, it’s not enough to foster genuine engagement or development.

The cost of generic, ineffective recognition is staggering — organizations lose over $6 million per 1,000 employees due to unhappy, unmotivated staff who stay in their roles. Even more telling, 79% of people who quit cite "lack of appreciation" as their reason for leaving.

When feedback is too general, it falls flat. Employees may wonder if you really see them, if you understand the intricacies of their work, or if you even care about their growth. This is the equivalent of handing someone a gift card without much thought—functional, but lacking in meaning.

Data tells us this isn't just theory. In healthcare settings, for example, Perceptyx research found that while 3 in 5 employees feel recognized for their contributions, there are significant disparities in how different groups experience recognition. Generic feedback particularly falls flat among certain employee populations, with some groups reporting recognition rates as low as 50%. This underscores the importance of moving beyond the "safe" option to more meaningful recognition approaches.

Personalized Feedback: The Thoughtful Gift

So how do we offer feedback that feels like a personalized gift, one that makes an employee feel truly seen and valued?

  • Know the Individual: Just as a meaningful gift reflects your understanding of a person’s preferences, feedback should reflect an understanding of who your employee is. What are their aspirations? What motivates them? What are their strengths and areas of growth? The more insight you have into these aspects, the more relevant and impactful your feedback will be. This requires taking the time to really get to know the people you lead, beyond their job title or daily tasks.

  • Tailor to Their Goals: For the same reason you wouldn’t give someone who doesn’t drink coffee a Starbucks gift card, you shouldn’t give feedback that’s irrelevant to someone’s personal or professional goals. Feedback is most effective when it’s tied to what the employee wants to achieve. Does this person want to develop leadership skills? Are they passionate about innovation? Use this knowledge to frame your feedback in a way that aligns with their goals.

  • Be Specific and Actionable: Generic gifts don’t leave a lasting impact, and neither does generic feedback. Instead of vague statements, offer specific observations about the employee’s performance. Focus on concrete actions or behaviors that they can build upon. This shows that you’ve paid attention to the details and are invested in their progress.

  • Recognize Individual Strengths: A great gift acknowledges what makes someone special, just as great feedback should highlight an employee’s unique strengths. When employees feel that their individual contributions are recognized and valued, they are more likely to feel engaged and motivated.

  • Encourage Growth: A good gift can push someone to explore new interests or unlock their potential. Similarly, feedback should encourage employees to stretch themselves and grow in ways that align with their aspirations. Help them see new possibilities for development and offer support on their journey.

  • Listen Actively and Consistently: Employee listening data is crucial for understanding how different groups experience recognition. Regular pulse surveys and feedback mechanisms can help identify gaps in your recognition strategy and ensure that your approach resonates across diverse employee populations. Our research reveals that peer recognition can be twice as impactful as supervisor recognition. In fact, employees who have given recognition to peers in the last two months show significantly higher job satisfaction and are more likely to recommend their company as a great place to work. This suggests that creating opportunities for peer-to-peer recognition can be as valuable as manager feedback.

The Lasting Impact of Thoughtful Feedback

When feedback is personalized and meaningful, it creates a sense of connection, trust, and engagement between leaders and employees. It becomes more than just a tool for performance management — it becomes an ongoing conversation that helps people grow and thrive. Employees who feel seen and understood are more likely to be engaged, motivated, and committed to their roles.

And just as meaningful gifts shouldn't be limited to birthdays and holidays, recognition shouldn't be confined to annual reviews or employee appreciation days. Our research shows that the most effective recognition programs:

  • Link well-defined goals with constructive feedback
  • Provide regular, consistent appreciation
  • Offer professional development opportunities as a form of recognition
  • Create opportunities for peer-to-peer recognition
  • Foster a recognition-rich environment at all organizational levels
  • Balance public and private recognition to celebrate both individual and team achievements

So, the next time you prepare to give feedback, think about it like choosing a gift. Don’t settle for the safe, generic option. Take the time to understand the person in front of you — their strengths, their goals, their unique qualities — and offer feedback that reflects this understanding. When you do, you’ll give them something far more valuable than just words. You’ll give them a sense of purpose, recognition, and growth. And that’s the kind of gift that keeps on giving.

Perceptyx Can Help You Recognize All of Your People

At Perceptyx, we understand the power of personalized insights and how they can transform engagement across your organization. Our Intelligent Nudges can offer tailored ideas and actionable insights based on your organization’s priorities, employee survey results, and individual goals. Each nudge is customized for individual roles and specific organizational needs, ensuring maximum relevance and engagement.

Connect with us today to learn how Perceptyx can help you implement a feedback strategy that feels like a thoughtful gift — personalized, actionable, and impactful.