Why Mattering at Work Is the Secret Weapon for Employee Retention and Organizational Success

Why Mattering at Work Is the Secret Weapon for Employee Retention and Organizational Success

Imagine showing up to work every day feeling invisible. Your contributions go unnoticed, your presence seems irrelevant, and you seriously question whether anyone would notice if you stopped coming in altogether. Now imagine the opposite: walking into an environment where you're genuinely seen, where your work visibly impacts others, and where colleagues and leaders regularly acknowledge your unique contributions.

The difference between these scenarios isn't just about employee satisfaction—it's about a fundamental human need that dramatically influences organizational outcomes: the need to matter.

In Harvard Business Review's May-June 2025 article, "The Power of Mattering at Work," researcher Zach Mercurio introduces us to Jane, a former caregiver who takes a cleaning position at a university and struggles with feeling like "just a janitor." Her story serves as an entry point to explore a profound psychological concept with far-reaching implications for organizations everywhere.

Mercurio argues that creating a sense of mattering—the feeling that one's work and presence has significance—is among the most powerful yet underutilized tools leaders have for addressing critical challenges like retention, engagement, and performance. While his perspective offers valuable insight, my research suggests we need to go even further in understanding and applying this concept.

Understanding Mattering: More Than Just Feeling Good

Mattering isn't merely about making employees feel appreciated, though that's part of it. Social scientists define mattering as the perception that we are significant to others and that our existence makes a difference in the world. It encompasses three key dimensions:

• Awareness: The belief that others notice and acknowledge our existence
• Importance: The belief that others care about what happens to us
• Reliance: The belief that others depend on us and our contributions

Research by sociologist Gregory Elliott at Brown University found that mattering strongly correlates with psychological well-being and serves as a buffer against depression and anxiety. When applied to the workplace, the implications are profound.

Research from the Society for Human Resource Management found that 76% of employees who report feeling that they matter at work are significantly more likely to remain with their organization for at least two more years. In contrast, 65% of employees who don't feel they matter are actively seeking new positions.

The mistake many organizations make is treating mattering as a "nice to have" rather than a fundamental business imperative. The evidence overwhelmingly suggests otherwise.

The Business Case for Mattering

Creating a culture where employees feel they matter isn't just about being nice—it's about organizational performance. Multiple studies have established strong connections between employees' sense of mattering and critical business outcomes:

Retention and Recruitment

A 2023 McKinsey study found that "feeling valued by organization" ranked as the top factor in employee retention decisions, outranking compensation. This becomes increasingly important as organizations face talent shortages and high replacement costs.

According to research by Boston Consulting Group, replacing an employee typically costs between 100-300% of their annual salary. Creating a culture of mattering becomes not just a moral imperative but a financial one.

Engagement and Productivity

Gallup's research consistently shows that when employees strongly agree that they're recognized for their contributions, they're 4 times more likely to be engaged. This engagement translates directly to productivity, with engaged teams showing 23% higher profitability compared to disengaged teams.

Moreover, as Stanford psychologist Emma Seppälä found, employees who feel their work matters demonstrate greater resilience during difficult periods and recover more quickly from setbacks.

Innovation and Psychological Safety

When employees feel they matter, they're more likely to share ideas and take calculated risks. Amy Edmondson's research at Harvard demonstrated that psychological safety—which closely relates to mattering—creates environments where innovation flourishes.

Organizations where employees report high levels of mattering show 37% more innovation activity than those where employees feel like replaceable parts, according to research from the MIT Sloan School of Management.

The Dangerous Illusion of the Mattering Gap

One of the most troubling findings in this field is what I call the "mattering gap"—the significant disconnect between how much leaders think their employees feel they matter versus reality.

A 2023 survey by Achievers Workforce Institute found that 82% of senior leaders believe their employees feel valued and significant, while only 31% of employees report actually feeling that way.

This perception gap has widened in distributed and hybrid work environments, where opportunities for meaningful interaction have decreased. Intentionality about creating mattering has never been more important.

Four Dimensions of Workplace Mattering

While Mercurio's work offers valuable insights, my research suggests we need a more comprehensive framework for understanding how mattering manifests in organizational contexts. I propose four critical dimensions:

1. Interpersonal Mattering

This most fundamental form involves feeling noticed, valued, and cared about by colleagues and leaders. It's created through daily interactions, sincere acknowledgment, and authentic interest in employees as whole people.

Case Example: At semiconductor manufacturer Analog Devices, executives conduct regular "stay interviews" where they ask employees questions like "What makes you feel valued here?" and "When was the last time you felt truly seen and appreciated?" These conversations have helped reduce turnover by 24% in key positions.

2. Contributional Mattering

This dimension focuses on understanding how one's work impacts others and advances organizational goals. It answers the crucial question: "Does my work make a difference?"

Case Example: Emergency medical device manufacturer Stryker implemented a program where sales representatives record videos of surgeons explaining how the company's products saved lives. These testimonials are shared with production line workers, creating a direct connection between their daily work and its lifesaving impact. The result: quality metrics improved by 37%.

3. Developmental Mattering

This involves the belief that the organization cares about one's growth and future. When leaders invest in development, they signal that employees matter not just for what they do today but for what they could become.

Case Example: Software company GitLab designates 20% of work time as "investment time" for all employees to pursue learning or passion projects. This practice has contributed to their 92% retention rate in an industry where turnover averages 13.2% annually.

4. Structural Mattering

This dimension involves systems, policies, and processes that either reinforce or undermine mattering. It includes everything from compensation practices to decision-making protocols.

Case Example: Outdoor retailer REI redesigned its performance evaluation system to include peer recognition and impact stories alongside traditional metrics. This structural change led to a 28% increase in employees reporting they feel their contributions matter.

Creating a Culture of Mattering: Practical Approaches

Transforming an organization into one where employees genuinely feel they matter requires a multi-level approach. Here are evidence-based strategies leaders can implement:

Executive Leadership Level

• Communicate clear purpose beyond profit: Organizations with clearly articulated purposes that transcend financial performance create natural environments for mattering. When employees understand how their organization benefits society, they're more likely to see their own work as significant.
• Model vulnerability and appreciation: When senior leaders acknowledge their own challenges and publicly recognize contributions throughout the organization, they set a tone that validates the importance of every role.
• Invest in mattering infrastructure: This includes allocating resources for recognition programs, creating physical spaces that honor contributions, and designing compensation systems that reward impact creation rather than just task completion.

The CEO of healthcare system Cleveland Clinic, for example, implemented a practice where he personally responds to employee concerns raised during town halls, demonstrating that every voice matters regardless of position in the hierarchy.

Mid-Level Management Practices

• Connect individual work to larger impact: Managers should regularly help team members see the link between their daily tasks and broader organizational goals or customer outcomes.
• Practice specific, behavior-based recognition: Rather than generic praise, effective managers highlight specific actions and their consequences ("Your careful analysis in that report directly influenced our decision to pursue this new market").
• Create forums for input and visibility: Regular opportunities for employees to share ideas and showcase work signal that their thinking matters.

Logistics company XPO requires managers to document "impact stories" for each team member quarterly, creating tangible evidence of how individual contributions affect the organization.

Individual Contributor Practices

• Seek impact understanding: Employees can proactively request information about how their work contributes to team goals and customer outcomes.
• Build mattering networks: Creating connections where mutual appreciation and support flow naturally enhances feelings of significance.
• Practice contribution visibility: Learning to appropriately communicate impact helps others understand one's value.

At consulting firm Slalom, consultants maintain "impact journals" where they document client outcomes and share these during team meetings, creating visibility for contributions that might otherwise go unnoticed.

The Challenging Cases: Creating Mattering in All Roles

One criticism of the mattering concept is that it might be easier to implement in certain roles and industries than others. However, research suggests that mattering can be created in virtually any organizational context:

Routine and Repetitive Work

As Mercurio's opening story about Jane the custodian suggests, even roles that involve repetitive tasks can be infused with mattering. Manufacturing company Barry-Wehmiller transformed its shop floor culture by implementing a "meaningful work" program where production line workers regularly meet customers who use their products and hear stories about their impact.

Remote and Distributed Teams

Digital collaboration platform Trello developed "virtual mattering rituals" where remote team members share weekly impact stories and dedicate time in team meetings for appreciation exchanges. These practices have helped maintain their 96% retention rate despite having no physical offices.

High-Pressure, Results-Oriented Environments

Even in high-stakes fields, mattering matters. Investment bank Moelis & Company implemented a "consequential contribution" practice where junior bankers learn precisely how their analytical work influenced deal outcomes, creating meaning in the midst of demanding schedules.

Beyond Recognition: The Critical Distinction

One common misconception is equating mattering with recognition programs. While recognition can contribute to mattering, the two concepts differ in important ways:

• Recognition is episodic and often reward-based; mattering is continuous and relationship-based.
• Recognition acknowledges what someone has done; mattering validates who someone is.
• Recognition flows primarily from top to bottom; mattering can be created in any relationship direction.

This distinction explains why many organizations with robust recognition programs still struggle with engagement and retention. These programs, while valuable, don't fully address the deeper human need to feel one's existence and contribution matter.

Measuring Mattering: The Metrics That Matter

As management expert Peter Drucker famously noted, "What gets measured gets managed." Organizations serious about mattering should measure it systematically:

Quantitative Approaches

• Employee surveys using validated mattering scales
• Retention analysis segmented by mattering scores
• Engagement correlations with mattering indices
• Performance data linked to mattering indicators

Qualitative Approaches

• Focus groups exploring mattering experiences
• Exit interview analysis for mattering themes
• Narrative collection of mattering stories
• Cultural artifacts that reflect mattering values

Healthcare system Mayo Clinic developed a composite "Significance Index" that tracks various mattering indicators and correlates them with patient outcomes, finding that units with higher mattering scores consistently deliver better patient care.

The Dark Side of Mattering: Avoiding Common Pitfalls

While creating cultures of mattering offers tremendous benefits, organizations must avoid several potential traps:

Inauthentic Implementation

Employees easily detect when mattering initiatives are performative rather than genuine. Leaders must embody the principles personally rather than delegating them to HR initiatives.

The Equity Challenge

Unless carefully designed, mattering efforts can inadvertently favor certain groups or roles. Organizations must ensure that opportunities to matter are distributed equitably across demographic groups and job functions.

The Burnout Paradox

When employees feel deeply that their work matters, they may be susceptible to overwork and burnout. Leaders must pair mattering initiatives with healthy boundaries and sustainable work practices.

Technology company Salesforce addresses this through mandatory "wellness days" and manager training on recognizing burnout signs in highly engaged employees.

The Future of Mattering: Emerging Trends

As we look toward the future of work, several trends will likely influence how organizations approach mattering:

AI and Automation

As routine tasks become increasingly automated, human roles will focus more on uniquely human capabilities—creativity, empathy, judgment—creating both challenges and opportunities for mattering.

Purpose-Driven Generations

Younger workers increasingly prioritize meaning and impact in their career decisions. Organizations that create environments of mattering will have distinct advantages in talent markets.

The Meaning Economy

We're witnessing a shift from purely financial metrics of success to more holistic measures that include meaning creation and societal contribution. Organizations that understand this shift will thrive.

Conclusion: The Mattering Imperative

Zach Mercurio's work on mattering provides a valuable starting point for understanding this powerful concept. The evidence clearly indicates that creating environments where employees genuinely feel they matter isn't just a nice leadership gesture—it's a business imperative with profound implications for organizational performance.

In a world where talent is increasingly the defining competitive advantage, leaders who master the art and science of creating mattering will have a decisive edge. They'll build organizations where people don't just work for a paycheck but contribute with passion and purpose. They'll reduce the astronomical costs of turnover while increasing innovation and resilience.

Perhaps most importantly, they'll create workplaces that honor the full humanity of everyone who contributes, regardless of role or level.

The question for leaders is no longer whether mattering matters—the evidence is conclusive that it does. The question now is whether organizations have the courage and commitment to transform how they engage with the humans who power their success.

For those that do, the rewards will extend far beyond financial performance to the creation of institutions that elevate human potential and dignity. In a very real sense, that might be the most significant business outcome of all.

To explore more on how fostering a sense of mattering in the workplace can dramatically boost both employee retention and organizational performance, consider reading the original insights by Zach Mercurio. Read more about the power of mattering at work here.