Here’s something HR leaders rarely get credit for: you spend Q4 carrying two emotional weights at once. You’re wrapping up performance reviews — one of the most personal processes in the entire people cycle — while still recovering from the chaos of open enrollment. It’s evaluative, operational, strategic, and deeply human all at once.
But here’s the shift many HR leaders aren’t using to their advantage yet: Gratitude isn’t a soft skill. It’s a performance tool. And it may be the missing link between a stressful year-end review cycle and a stronger, more loyal team heading into 2026.
New research shows that workplace gratitude can improve engagement, reduce turnover, strengthen psychological safety, and even increase resilience during hard conversations. And right now employees are more receptive to those messages than at any other point in the year.
So here’s a fresh, data-backed way to elevate your reviews and compensation discussions: lead with gratitude, and build the conversation around what people mean to the business, not just what they produce. Here's how.
Most employees walk into performance reviews with their guard up, even the high performers. But opening with sincere appreciation immediately lowers anxiety and boosts trust. In fact, research from Workhuman and Gallup found that when employees feel regularly recognized, they are up to 4x more likely to be engaged and 5x less likely to job hunt.
Yet, here’s the surprising part: Nearly 60% of employees say they receive meaningful recognition less than once a year. That means your review conversation may be the first moment of true appreciation they hear in 2025.
A specific, thoughtful “thank you” doesn’t just feel good. It shifts the entire tone from “evaluation” to “partnership.” And people open up far more when they feel valued.
Gratitude isn’t fluff. It’s a retention strategy hiding in plain sight.
Gallup’s most recent retention analysis found that employees who feel recognized are 56% less likely to be looking for a new job. And organizations with strong recognition programs see 30%+ lower voluntary turnover.
This math matters especially now. Replacing an employee can cost half to two times their annual salary once you add recruiting, lost productivity, and training. A heartfelt acknowledgment costs nothing, yet returns real value.
Telling someone, “You matter here” is a retention strategy in its purest form.
After open enrollment, employees are actively thinking about their total rewards, not just pay. Year-end reviews are the perfect moment to reinforce the full value of what they receive.
In other words: Compensation decisions land better when employees understand the complete package.
If you improved benefits this year — mental health support, fertility benefits, better 401(k) match, more paid leave — mention it. Frame benefits as a thank you in action.
Employees want to feel that their employer invests in their life, not just their labor.
Talking about money is the moment everyone holds their breath. But here is a subtle truth supported by behavioral research: People handle disappointing news better when they feel respected, informed, and appreciated.
A 2024 SHRM study revealed that pay ranked only sixth among reasons employees quit, behind lack of trust in leadership, poor communication, and toxic culture.
Translation: How you talk about compensation matters as much as the numbers themselves.
If budget constraints limit raises, pair transparency with gratitude: “I wish we could do more this cycle. Your impact has been enormous, and we want to keep finding ways to show you that.”
Honest and appreciative is a powerful combination.
And if monetary increases aren’t possible, offering alternatives — spot bonuses, development stipends, an extra PTO day, or public recognition — can still create meaningful uplift.
One of the most underrated forms of gratitude is opportunity.
According to LinkedIn’s Workplace Learning Report, 94% of employees would stay longer at a company that invests in their development. Meanwhile, lack of growth remains one of the top three reasons people leave.
Use your review conversation to say: “We appreciate you and we see a future for you here.”
Ask about their aspirations. Explore stretch assignments, cross-functional projects, conferences, certifications, or mentoring. This transforms the review from a look-back into a look-forward.
Employees stay where they feel they can grow.
Here’s your most powerful year-end unlock: Consistency beats intensity.
A once-a-year gratitude moment won’t change culture. A once-a-week habit will.
Workhuman’s 2024 research found that employees who experience recognition at least weekly are 3x more connected to their company and 2x more likely to describe their workplace as psychologically safe.
Small gestures compound:
Gratitude creates a loop: when people feel valued, they perform better, which gives you more to appreciate next year.
As HR leaders navigate the year-end sprint, gratitude offers something rare: A way to strengthen culture, retention, trust, and performance without adding complexity or cost.
Your performance reviews can be the moment people feel:
And when employees leave their review feeling valued as human beings they walk into the new year with energy, commitment, and loyalty that no compensation budget alone can buy.
Here’s to a season of appreciation that lasts well beyond November. Happy reviewing — and Happy Thanksgiving.
