The Surprising Power of Gratitude in Team Leadership

24 April 2025

The Surprising Power of Gratitude in Team Leadership

Gratitude is often an overlooked aspect when defining the core traits of a leader. Managers often focus on productivity, strategy, and meeting deadlines. But in many successful teams, a quieter force drives performance: recognition and appreciation. 

In a professional setting, expressing gratitude goes beyond mere politeness. It’s about cultivating an atmosphere where employees feel genuinely recognized for their contributions. This article discusses the surprising power of gratitude in team leadership.

Why Gratitude Matters in the Workplace

Employee engagement is a significant concern in the US. A Gallup study shows that only 33% of US employees felt engaged in their work in 2023. Additionally, disengaged employees result in a loss of $1.9 trillion annually. Showing gratitude towards your employees, team members, or colleagues can help overcome this challenge.

Team members who feel genuinely appreciated are more likely to stay engaged, collaborate better, and take the initiative. Research consistently shows that gratitude in the workplace strengthens relationships, reduces stress, and even improves overall job satisfaction. Yet, many managers struggle to make it a part of their regular leadership habits.

Gratitude also helps shift the mindset from control to support. Managers often assume that being in charge means keeping everything on track and solving every issue personally. But when they begin to appreciate their team’s input openly, it creates a ripple effect. People are more willing to take ownership and be less afraid to contribute ideas.

Building a Culture of Appreciation

Simple acts, like acknowledging effort during meetings or sending a note after a job well done, can transform how teams work together. Gratitude builds trust. And when trust is strong, collaboration becomes smoother, even during high-stress situations.

According to Great Place To Work, thanking is one of the nine high–trust leadership behaviors. Many companies have employee recognition programs. Some also give awards to the employee of the month. However, just recognizing one employee every month is nowhere near enough! Every employee should be thanked and recognized for their contributions, both small and big.

Some managers worry that showing appreciation too often may come across as insincere. The key is to make it specific and timely. “Thanks for your help” can feel generic, while “I appreciated how you stayed late to finish the client proposal” feels personal and meaningful.

A Harvard Business Review article states that timing matters when showing gratitude. For instance, appreciating employees before they engage in distressing tasks can help counteract negative emotions. Similarly, it can also encourage them to stay persistent in challenging situations and bounce back stronger.

A Ripple Effect Across Teams

Gratitude is also contagious. When leaders model appreciation, others in the team begin to do the same. Gradually, this practice cultivates a workplace that is more optimistic and better equipped to handle adversity. This can transform errors into learning opportunities instead of fault-finding exercises and promote teamwork over isolated efforts when facing difficulties. Challenges are faced together rather than in isolation.

The essence of leadership extends beyond task management to inspiring and guiding people to contribute their highest potential. Gratitude may not always be visible in metrics or dashboards, but its impact can be felt in the way people interact.

As a Forbes article notes, leaders who openly appreciate their teams create a ripple effect. This makes gratitude not just another soft skill to add to the resume but also an important business asset. Authentic gratitude expressions can boost morale, foster innovation, and earn loyalty.

Let’s say a project manager recognizes a developer who spotted and resolved a critical issue before a product launch. Publicly sharing this during a team meeting while clearly describing the impact does more than boost one person’s morale. It shows the whole team what behaviors are valued and why they matter. This could make team members show the same expressions to each other.

Learning to Lead With Gratitude

Learning how to express gratitude effectively isn’t always intuitive. It requires self-awareness, emotional intelligence, and consistent effort. That’s why formal education in leadership is becoming more important, because developing potential is essential to retaining the right talent. And any accredited leadership qualification will address the importance of understanding and engaging with people to be able to lead effectively. Regardless of the profession or occupation. 

Consider the example of engineering. The Business Consulting Group states that the US needs more engineers, yet around one-third of new roles created in engineering remain unfilled every year. This gap could be filled by broadening recruitment from traditional candidates but the profession is also struggling to incorporate diversity and inclusion. Therefore, the growth of flexibly delivered educational programs can help resolve these issues. The opportunity to attain an online master’s degree in engineering management, could address the skill gap in this critical sector. Thus, professionals who already lead a team of engineers can also enroll in them. The 100% online coursework of these programs offers flexibility of learning from anywhere and at any time.

However, online master’s degree programs in engineering management go beyond core subjects such as project scheduling and operations. They include course course that emphasize the importance of human interaction, such communication, team dynamics, and leadership approaches rooted in respect and recognition. For engineers stepping into managerial roles, this type of education can make the difference between managing people and leading them.

Frequently Asked Questions

Can gratitude improve performance in teams that are already doing well?

Yes, even high-performing teams benefit from ongoing appreciation. While these teams may already deliver strong results, gratitude helps sustain their motivation and prevent burnout. It reinforces trust, encourages continued collaboration, and keeps morale high, especially during demanding periods. It’s not about fixing a problem; it’s about maintaining a healthy team environment.

How do you show gratitude without sounding repetitive?

The key is variety and sincerity. Rotate between private thank-you’s, public recognition, written notes, or small gestures like giving someone time off after a big effort. Focus on specific actions and outcomes. When gratitude is personalized and timely, it feels fresh and meaningful rather than forced or routine.

What are some signs that a team lacks a culture of gratitude?

A few common indicators include low engagement, limited communication, or a noticeable lack of enthusiasm during meetings. Team members may hesitate to share ideas or express frustration more openly. Without a sense of appreciation, people can start to feel invisible, which can gradually affect their morale and overall performance.

Concluding Thoughts

Gratitude doesn’t require a big budget, formal recognition programs, or complicated strategies. What it does require is consistency, sincerity, and attention to the people you lead. Whether you’re managing a small team or overseeing large projects, the habit of appreciation can quietly shape a stronger, more motivated group.

When leaders take the time to notice and acknowledge effort, it sends a clear message: what you do matters. And that message can have a lasting effect on productivity, teamwork, and workplace wellbeing. Gratitude may seem like a small detail, but in leadership, it’s often the small things that make the biggest difference.

Leadership Resources

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