UNLEASHING THE HUMAN ELEMENT AT WORK:Transforming Workplaces
Through Recognition﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Table of Contents
2		

Executive Summary

4		

Introduction

		4 Bringing the “Human” Element Back to Work

6		

Detailed Findings

		6 Unpacking Workplace Recognition
		11 The Five Pillars of Recognition
		19 Investing in Recognition
		20 Driving Impact Through Recognition32		
Conclusion
32		
Leaders' Five Next Steps
33		
Methodology
34		
Appendix: Cross-National Comparisons

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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Executive Summary
Globally, organizations are facing a monumental moment of transitionin the world of work, one that is bound to have a lasting impact. Not
only are the nature and context of work changing — employees’ needs
are shifting too. Only one in four employees strongly agree they feel
connected to their culture, and only about one in three strongly agree
they belong at their organization.
To build the right workforce for the future and leverage its capabilities,
leaders must take a human-centered approach to building their employee
experience and employer brand. It starts by demonstrating to employees
they are valued by recognizing their contributions.

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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Key findings from this report include:
Many organizations are missing out on the benefits ofrecognition by not investing in or prioritizing it.
• Eighty-one percent of leaders say recognition is not a major strategic priority for their organization.
• Seventy-three percent of senior leaders say their organization does not offer managers or leaders
best‑practices training for employee recognition.
• Nearly two in three leaders say their organization does not have a budget allocated to recognition.
• Creating a culture of recognition can save a 10,000-employee company up to $16.1 million in turnovercosts annually.

When recognition hits the mark, employees are:73%

less likely to “always” or“very often” feel burned out

5x

as likely to feel connectedto their culture56%

less likely to be looking or
watching for job opportunities

4x

5x

as likely to
be engaged

44%

more likely to be “thriving”
in their life overall

as likely to see a path togrow at their organization

4x

as likely to recommend
their organization tofriends and family

There is not enough recognition going around, despite managers
and leaders reporting that they frequently give it.
• Sixty-seven percent of leaders and 61% of managers say they give recognition a few times a week ormore, versus 42% of individual contributors.
• Comparatively, 40% of employees report receiving recognition only a few times a year or less from amanager, supervisor or other leader at their organization.
• Only 23% of employees strongly agree their organization has a system in place to recognize work
milestones; 15% strongly agree they have a system for recognizing personal events in employees’ lives.

Recognition has the most impact when it is:• fulfilling employees' expectations and needs — but only 23% strongly agree they get the right amountof recognition for the work they do• authentic — but only one-third strongly agree the recognition they get meets this bar• equitable — but only one-quarter strongly agree recognition is given equitably at their organization• embedded in the culture — but only 19% strongly agree recognition is an important part of the culture attheir workplace• personalized — but only 10% report being asked about their preferences for receiving recognition

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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Introduction
Bringing the “Human” Element Back to Work
The importance of human capital has never been more evident, as the resilience of the workforce amid a global
crisis has kept the world running. But recent trends, including declines in employee engagement and increased
demands for workplace flexibility, coupled with the volatility of the job market itself are putting new pressure onorganizations to be mindful of the "human" element at work. They cannot simply offer jobs; they must create anenvironment where employees want to work and can be their best.
The future of work starts with showing employees that they are valued now. Recognition is a simple wayorganizations can demonstrate their investment and commitment to their employees and inspire them to feel
connected, confident and cared about — ensuring they leverage the full force of their human power at work.

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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

A Human-Centered Approach to the Employee Experience
Building the future of work using a human-centered approach starts with understanding the employee experiencefrom a human angle.
Employees bring their wellbeing, or lack thereof, to work with them every day. It shows up in their productivity
levels, work quality, interactions with other associates and how they contribute to the organization. Employees
want to believe their organizations — i.e., their managers, coworkers and even senior leaders — care about themas people.
Organizations can show they care by celebrating who employees are and what they bring to the table. Whenemployees are recognized for their contributions and achievements, they feel that they matter.1 In this way andothers, workplace recognition is critical to building an employee experience that meets employees' human needs.
Despite being a fundamental employee need,2 only one in four worldwide strongly agree they have received
recognition for their work in the last week. When organizations move that bar up to six in 10, they stand to gain
a 28% improvement in quality and 31% reduction in absenteeism.3 Recognition can also reduce attrition and theturnover costs that come along with it, as explored later in this report.4
Analysis of thousands of employees' perspectives — from front-line workers to managers and senior leaders— triangulates on a key message that is more critical now than ever: Recognition isn’t just a nice-to-have; it is acore “human" element in the employee experience that drives engagement, performance and retention.
This report is designed to help leaders harness the power of recognition to build a better, more human experienceat work. Results discussed here clearly show that recognition is imperative to building strong workplaces
and represents a significant opportunity for workplace evolution.5 The data reveal the forms and functions ofrecognition, the five essential pillars of a solid recognition strategy, and the critical next steps leaders should takein constructing an approach that meets real human needs.

1Workhuman. (2021). How the great resignation will shape HR and the future of work. https://www.workhuman.com/resources/reports-guides/how-the-greatresignation-will-shape-hr-and-the-future-of-work

2

Dvorak, N., & Mann, A. (2016, June 28). Employee recognition: Low cost, high impact. Gallup.com. https://www.gallup.com/workplace/236441/employeerecognition-low-cost-high-impact.aspx#:~:text=Gallup's%20data%20reveal%20that%20the,or%20a%20thank%2Dyou%20card

3

Clifton, J., & Harter, J. K. (2019). It’s the manager: Gallup finds the quality of managers and team leaders is the single biggest factor in your organization’s longterm success. Gallup Press.

4 	 Gallup has developed longitudinal models that predict actual turnover based on turnover intentions and employee engagement, then estimate overall turnovercosts. When recognition is added to this algorithm, there are additional cost savings.
5

For context, drivers of workplace outcomes (e.g., engagement, inclusion, etc.) that lead to impact factors of "two times" are generally seen as substantial andmeaningful impacts; that characteristics of recognition studied in this research have multiple times that impact — sometimes up to six times — is noteworthy.
5

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Detailed Findings
Unpacking Workplace Recognition
Bringing recognition to life and harnessing its power starts with understanding what it is and how it is experienced
in the workplace — essentially, the “what, when and how” of recognition.

What Is “Recognition,” and When Should It Be Given?
In this report, recognition refers to praising, acknowledging or expressing gratitude to employees for who they are
and what they do. It involves taking time to thank employees, give them credit for good ideas and acknowledge
their accomplishments.
Workplace recognition often focuses on work output and work-related achievements. However, recognition canalso honor work-related milestones, like promotions and work anniversaries. Drawing attention to these events
serves a dual purpose: It celebrates employees’ achievements while sending important messages about the value
placed on progress and continued commitment. Approximately a quarter (23%) of employees strongly agree theirorganization has a system for recognizing these types of events.
Organizations can send an even more powerful message by celebrating the human behind the work. By
commemorating birthdays, weddings and other personal events, organizations show they care about employees
as people. However, only 15% of employees strongly agree their organization has a system in place to recognize
life events.

When an employer recognizes life events and work milestones, employees are …

3x

3x

as likely to strongly agree they
feel connected to culture

as likely to strongly agree
their organization cares
about their wellbeing

Real employees explain what
recognition means to them:30%+

more likely to say
they plan to be at theirorganization in five years“What you’re doing is
not a thankless job, that it’s partof the team and it’s part of the wholeoperation that we’re doing.”“I value youropinion; you’re an integral
part of our organization.”
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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Although recognition often singles people out, it can also honor a group effort. Twenty-two percent of employees
strongly agree groups and teams are recognized at their organization. When they are, it reinforces the importanceof being part of and working as a unit.
The setting where recognition is given — and particularly who is present — can be as important as the recognition
itself. Most employees (58%) receive both public and private recognition, but nearly a third (30%) receive it mostly
in private; 11% receive it mostly in public settings.
While private recognition is often described as personal and meaningful, public recognition has distinct benefits inbuilding a culture of recognition. Visible displays of recognition can showcase an employee's value and magnify
the amount of recognition given. When people witness recognition, they often extend it themselves, resulting in aripple effect that can be felt throughout an organization.

How Should Recognition Be Given?
Recognition is not one-size-fits-all. While organizations may have their own style of recognition, having a formal
recognition system has distinct benefits. Formal programs make recognition more salient, which in turn helps
people make the time and space for this important ritual. However, only about one-third of employees say theirorganization has a formal recognition program.
Increasingly, employee of the month, annual awards ceremonies and other traditional forms of recognition arebeing augmented with newer solutions. Digital platforms and software programs can provide a natural conduit forrecognition that easily integrates into most modern workplaces and make recognition more accessible, especiallyfor geographically dispersed workforces. Having these systems in place demonstrates to employees that theirorganization sees recognition as a worthwhile investment of time and money.
Some workplaces offer a financial incentive with recognition. About one in five employees say they receive amonetary reward with recognition. When organizations offer financial rewards, employees are more likely tostrongly agree they belong and that they see a path to grow at their organization (30% and 41%, respectively).
They are also 28% more likely to recommend their organization as a great place to work.
The data show that having a recognition program or platform is necessary, but simply having one is not enough. Only
when programs are well-implemented and embedded in the culture do employees and organizations reap the benefits.

36%

22%

21%

of employees saytheir organization
has a recognition
programof employees saytheir organization
uses a digitalrecognition platform
or softwareof employees saytheir organization ties
a monetary reward
to recognition

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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

How Often Should Recognition Be
Given, and Who Should Give It?

21%

Just as recognition can come in many forms, it
can also come from a variety of sources. Most
employees receive recognition from multiple
sources, but not always at the same frequency. Halfreport receiving recognition from their manager,
supervisor or a leader about as frequently as theyreceive it from coworkers, but three in 10 receive
it more often from their peers; two in 10 receive it
more often from leaders.

of employees say they receive
recognition from a manager, supervisor
or other leader at their organization
at least a few times a week

While recognition from managers, supervisors andleaders serves important purposes, peer recognition
is no less meaningful. As the table below shows,
employees say they want recognition from peers justas much or more often than they want it from their
manager, supervisor or leaders.

40%

How often would you like to receive recognition
from [the following] at your organization?

of employees say they receive
recognition from a manager, supervisor
or other leader a few times a year or less

Source27%% Prefer a
few times
a weekor more% Prefer a
few times
a monthor more

21

59

23

57

Manager,supervisor orother leader
Peersof employees say they receive
recognition from their peers atleast a few times a week34%
of employees say they receive
recognition from their peers
a few times a year or less8

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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Overall, about one in five employees (21%) report receiving recognition a few times a week or more from amanager, supervisor or leader; 27% receive it as often from peers. Conversely, 40% say they receive recognition
from their manager, supervisor or a leader a few times a year or less. One in three report receiving it from peers at
the same rate.
How often do you receive recognition from [the following] at your organization?

Source% Daily% A fewtimes
a week% A fewtimes
a month% A fewtimes
a year% Lessthan oncea year% Never

5

16

28

26

9

6

7

20

26

21

6

7

Manager,supervisor
or other leader
Peers

Note: “Don’t know/Does not apply” answers not shown. Due to rounding, percentages may sum to total ±1%.

Experiencing consistently low levels of recognition is a drain on the employee experience and workplace culturethat can have serious repercussions. When organizations fall short on showing employees they are valued, theyrisk losing their employees altogether.
Employees who receive recognition only a few times a year or less from each of these sources are …
Manager, supervisor or other leader

Peers

5x

3x

as likely to be actively disengaged

as likely to be actively disengaged

74%

39%

more likely to say they do not plan to be atmore likely to say they do not plan to be attheir organization in one year

their organization in one year

27%

24%

more likely to be struggling

more likely to be struggling

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It Is as Important to Give as to Receive
Recognition is a self-generated machine: For employees to receive recognition, they must also be active
participants in a culture of recognition. Overall, 48% of employees report giving recognition at least a few times aweek, but managers and leaders are much more likely to report giving recognition frequently.6
Percentage of employees who frequently* give recognition, by management level

80%

60%

67

61
+19

42

+13
48% Employees
Overall

40%

-6

20%

0%

Leaders

Managers

Individual Contributers

Note: Due to rounding, percentages may sum to total ±1%.
* A few times a week or more

6

In this report, managers are defined via self-report as responsible for the work output of other employees and may be either project managers or people
managers; leaders are also determined by self-report as “senior leaders” who manage other managers.
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The Five Pillars of Recognition
All recognition matters, from simple, day-to-day “thank-you’s” tocompanywide awards. But not all recognition is equal. Five factors are
critical to driving its impact: Recognition must be fulfilling, authentic,
equitable, embedded in the culture and personalized.7

1. Fulfilling
2. Authentic
3. Equitable
4. Embedded in the Culture
5. Personalized

7

Extensive quantitative and qualitative research has demonstrated that these five factors are more highly associated with the positive impacts of recognition
than the type of recognition, source or setting of recognition, presence or absence of formal programs, and presence or absence of monetary recognition.
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1. Fulfilling
There is no “magic number” for how frequently recognition should be given, as employees' individual needs vary.
Rather, organizations should target providing a consistent and reliable experience of being appreciated to fulfill
employees’ basic human need to feel valued and validated.
Most employees want to be recognized at least a few times a month, but this should be regarded as the bareminimum.8 The data show there is no such thing as “too much” recognition — as long as it is genuine andappropriately given. As shown below, more than 40% of employees view the right amount as a few times aweek or more.

Percentage of employees who strongly agree
they receive the "right amount" of recognition
from managers/leaders, by frequency% Right amount

Daily

17

24

8

17
4
24

A few times
a week14
28
28

A few times
a month29

A few times
a year14

A few times
a year% Not the right amount

Daily

2

A few times
a monthNever% Right amount% Not the right amountA few times
a weekLess than oncea year

Percentage of employees who strongly agree
they receive the "right amount" of recognition
from peers, by frequency

1Less than oncea year

11
0.4

Never

8

19
24
27
12
23
2
7
2
9

Providing recognition at least a few times a month is the minimum frequency necessary to see positive effects on engagement, culture, wellbeing, turnover
intentions and other key outcomes.
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Currently, only 23% of employees strongly agree they get the right amount of recognition for the work they do,meaning nearly three-quarters of employees are missing the steady reinforcement and appreciation they needto help them be their best.9 This low percentage also indicates that many organizations are missing out on thebenefits seen when employees feel that their recognition needs are being fulfilled, including those shown below.
Employees who feel fulfilled byrecognition are …*

Employees who do not are …**

4x8x

as likely to be engaged

as likely to be actively disengaged

less than 1/2

4x

as likely to be looking or passively
watching for job opportunities

as likely to be actively
looking for another job

44%

62%

more likely to be “thriving”
in their life overall

more likely to be “struggling”
in their life overall* Employees who strongly agree they receive the right amount of recognition for the work they do.
** Employees who disagree that they receive the right amount of recognition for the work
they do.10

Providing more frequent recognition can help organizations
ensure they are meeting employees' needs, but the successof a recognition strategy should not be judged solely bywhether a frequency quota is being met. It can be easy fororganizations to overlook the simple truth: If employees
do not feel fulfilled by their recognition experience, thenemployers are missing the mark. Creating a fulfillingrecognition experience has far more impact than frequency
alone.11 Recognition is about validating effort, value-added
and an employee's inherent worth.

9	 Mosley, E. (2020). Making work human: How human-centered companies are changing the future of work and the world. McGraw Hill.
10	 Disagree is measured as a “1” or “2” on a five-point scale; looking at only “strongly disagree” (“1” only) yields even more extreme impact.
11	 Impact of “strongly agree” responses to “I receive the right amount of recognition for the work I do” is greater across the outcomes measured than frequencyof recognition from either managers or peers.
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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

2. Authentic
Although giving the right amount and type ofrecognition is critical, empty words or gestures will
not land. What makes recognition impactful iswhat it means to individuals — about themselves,
their job, their teams or workplace — and theorganization. If recognition is not perceived to beauthentic, it can undermine the experience.

“I think it’s just as
detrimental to give too much[recognition] for absolutely nothing… It has to be genuine recognition
appropriately given.”

Only about a third of employees strongly agree
the recognition they receive is authentic, indicating
a considerable opportunity for employers to makerecognition meaningful. In particular, Black and Hispanic
employees are highly attuned to authenticity: Black employees are 79% more likely to be thriving,and Hispanic employees are 69% more likely, when they can strongly agree the recognition theyreceive is authentic.
When employees strongly agree the recognition they receive is authentic, they are more likely to strongly
agree with …

I see a path to grow at
my organization
My organization cares about
my wellbeingBlack
employees

Hispanic
employeesWhite
employees

8x as likely

5x as likely

5x as likely

8x as likely

6x as likely

6x as likely

7x as likely

6x as likely

5x as likely

79% more likely

69% more likely

42% more likely

I would recommend myorganization as a greatplace to work
Thriving

Recognition becomes more meaningful when it is clear why it is being given. Telling employees how their work
made an impact takes the words “good job” to a new level. Tying monetary rewards to a specific achievement orgoal sends a different message than giving everyone a bigger paycheck at the end of the quarter. Spontaneous,in-the-moment feedback also reads as sincere.
Managers and leaders should consider how the recognition provided in their organization is perceived. Is it
given impersonally or unceremoniously as a matter of routine or obligation, or is it bestowed in a way that is
personalized and genuine? Optics matters but so does sentiment — and employees can tell the difference.

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3. Equitable
Although recognition should be targeted and personal, how much others receive matters. When employees see
recognition that is out of balance — particularly when they feel they are being shorted — it triggers an alarm totheir basic need for fairness and damages their overall employee experience.
Overall, only 26% of employees strongly agree they receive similar amounts of recognition as other teammembers at their company with similar performance levels. Deeper analysis shows clear patterns in who is— and is not — receiving recognition, with significant implications about the state of diversity and inclusion in
workplaces.
As shown in the following table, Black and Hispanic employees are less likely to report equitable recognition
than White employees. Only 19% of Black employees and 21% of Hispanic employees strongly agree they receivea similar amount of recognition as other team members, compared to 28% of White employees. They are alsoless likely to strongly agree the recognition they get is authentic. Black employees, in particular, are less likely tostrongly agree they get the right amount of recognition.
Percentage of employees who strongly agree recognition is authentic, equitable and that they receive theright amount, by racial identity group
OverallBlack
employees

Hispanic
employeesWhite
employees

23

17

21

24

The recognition I get is authentic

32

25

26

35

Recognition is equitable

26

19

21

28

I get the right amount ofrecognition

Recognition can reflect inclusivity at an organization, or reveal underlying attitudes and biases with serious
downstream repercussions. Just as importantly, where recognition is bestowed illustrates what — and who— an organization values. Acknowledging achievements can have a considerable bearing on reputation andperformance evaluations and ultimately figure into the opportunities available to employees. If recognition
is about giving credit where credit is due, then the general lack of perceived equity in recognition signals aserious failure.

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4. Embedded in the Culture
Recognition can be a practice, or it can be the way of life at an organization. The distinction between the two
makes a noticeable difference in the daily experience of employees.
Simply having a recognition program is not enough. A culture of recognition is one in which gratitude, praise andappreciation are freely given, regularly received and reach all corners of the organization. Where everyone feels
empowered to take part in showing appreciation and commending achievements.
Thirty-six percent of employees report having a recognition program at their organization — nearly twice thenumber who strongly agree recognition is fully embedded in their organization’s culture (19%). However, byembedding recognition into their culture, organizations can more than double the impact of their recognition
initiatives, as shown in the following table.
Employees who strongly agree their organization has a strong culture of recognition also say ...
... their organization has ...

% Yes

% No

ImpactRecognition program

27

13

2x

Monetary recognition

31

17

2x

Asked about their preferences

36

17

2x

% At least a few
times a month% Less than a few
times a month

Impact26

93xReceived recognition from peers

24

10

2x

Given recognition

21

10

2x

% Strongly agree% Do not strongly
agree

ImpactLife events are recognized

59

12

5x

Work milestones are recognized

49

9

5x

Teams and groups are recognized

69

5

14x

Recognition needs fulfilled

52

9

6x

Recognition is authentic

44

8

6x

Recognition is equitable

48

10

5x

... they have ...
Received recognition from amanager, supervisor or leader

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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Public recognition is also an important culture booster.
Only 11% of those who say recognition is mostly
a private show strongly agree their organization
has a strong culture of recognition, compared to
22% who indicate they receive a mix of private andpublic recognition. Those who receive mostly publicrecognition are the most likely to report having a solid
culture of recognition (37%).

Percentage of employees who say
their organization has a strong
culture of recognition, by type ofrecognition received

11%

What does it feel like to work at anorganization with a culture of recognition?

Mostly private“It makes me feelvalued and that I’m doing
something right, that it issomething. I’m doing things
that are being seen.”22%
Mix of private and public“I think overall,having more of a culture of being
recognized and knowing that people
appreciate your work just in general isgoing to make me work harder.”37%
Mostly public

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5. Personalized
Just as what constitutes the right amount may vary person-to-person, employees can have different preferences
for how and where they receive recognition. While getting recognition “right” can seem like a moving target, there
is a straightforward way to ensure a bullseye: just ask. However, only 10% of employees strongly agree they havebeen asked by someone at their current workplace how they like to be recognized.
Setting can matter. While some employees like being in the spotlight, not everyone does. Twenty-nine percent of
employees say they prefer to receive recognition in private, while only 7% prefer it to be public. The balance, 64%,
prefer a mix of public and private recognition.
Technology-mediated recognition can strike a balance by "packing the punch" of public recognition while being
more comfortable for employees who like a low profile. For example, mentioning exemplary work in an email
chain, expressing appreciation on an online platform or forwarding kind comments to someone’s superiors are allforms of public recognition, but they feel different to employees.
Employees also differ in how much they value a monetary component to recognition. Some describe monetary
rewards as the ideal recognition, but it can make less of a mark for other employees. Organizations that provide avariety of outlets for recognition offer the flexibility to personalize it and ensure it creates the intended impact.

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Investing in Recognition
Recognition drives impact across a multitude of dimensions related to employee productivity, retention andbrand‑building and can even reduce turnover costs. Yet, many organizations are not fully investing in recognitionor truly integrating it into their culture — or adequately budgeting for it. Any of these factors can prevent
organizations, and employees, from realizing the benefits of workplace recognition.
Many managers and leaders report that recognition is not valued or seen as a priority at their organization. In
fact, 81% of leaders say recognition is not a major strategic priority for their organization. Leaders give similaraccounts that lend support to this finding, stating: Leaders and managers are not recognized themselves, they
are not provided with the necessary resources (financial and otherwise) for recognizing their people, and theirorganization does not readily provide outlets, programs or systems for conferring recognition.

“There’s no structured time
for my team to be able to use these tools
and benefit from it. When they can barely
keep up with expectation of metrics each day,it’s like that’s the last thing on their list and it’sgoing to continuously keep being put off.”

Not investing enough time in recognition
is just as problematic — if not more
so — than underfunding it. Managers
report implementation challenges
as a barrier to realizing the impactsof recognition.

Recognition is critical to the employee experienceand those living it, including leaders. Whether or not it isseen as a priority overall may have implications for leaders' own
attitudes and prioritization of recognition. It can impact how they lead, the guidance they provide andeven their day-to-day behavior, thereby setting the tone throughout an organization.
Despite existing research showing that recognition can improve business outcomes,12 almost half of seniorleaders (46%) do not know what percent of their payroll budget is allocated to recognition, and more than one in
10 do not know if their organization has an allocated budget for it. But not knowing is not the biggest problem:
Nearly two-thirds of leaders (64%) say there is no budget allocated specifically to recognition.
Additionally, organizations frequently fail to set themselves up to get the most out of recognition. Seventy-three
percent of leaders say their organization does not provide any best-practice training for employee recognition. An
additional 83% say their organization does not pay an outside company, vendor or consulting group to help withor advise on it. This lack of support leaves most leaders and managers with little to no guidance on how to makerecognition count. Considering that organizations can leverage its power
for free if they do it well, this is a missed opportunity.

When organizations invest in recognition, it sends
a message to employees about what they value.
12 The Society for Human Resource Management & Workhuman. (2018).

Designing work cultures for the human era: The 2018 SHRM/Workhuman
employee recognition report. https://www.workhuman.com/resources/
reports-guides/findings-from-the-2018-shrm-workhuman-employeerecognition-survey-designing-work-cultures-for-the-human-era
19“It’s something I don’t
think employees recognize
from that aspect in the business;they are literally investing in us to beable to recognize each other and it
just ties into the culture of thecompany I work for.”Copyright © 2022 Gallup, Inc. All rights reserved.
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Driving Impact Through Recognition
Recognition brings the "human" element back to work by setting the tone for the entire employee experience.
When organizations get recognition right, employees are more committed, more engaged and connected to theirworkplace culture, have stronger working relationships
and feel a sense of belonging at their organization.
Employees who are emotionally fulfilled
through appreciation and acknowledgment
are more likely to stay with theirorganization. They feel a sense of loyalty
and act as brand ambassadors by sharing
their positive experiences with others
to build their company’s reputation andextend its reach. Recognition can also shield
employees from burnout and support theiroverall wellbeing.

“Awarding people for goodwork is crucial in any business at any
time, because that falls down and cascades into
people’s personal lives … and it cascades into abusiness, it cascades through so many different
things. The old adage of ripples in the pond.”

Committed
and Retained

Engagedand Growing

Cared forand Supported

Connected
and Included

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Committed and Retained
Many leaders do not think about recognition as part oftheir retention strategy but should. Employees who report
low‑quality or infrequent recognition are at a high risk for
turnover. As shown below, when employees do not strongly
agree that recognition is fulfilling, authentic, equitable orembedded in the culture, they are twice as likely to be looking or
watching for a new job. They are also roughly two or more times as
likely to say they do not plan to be employed at the same organization in
one year.

“I will say thatwhen I feel less appreciatedor less recognized, that’s when
the job searches start.”

Among employees who are actively looking or watching for job opportunities …
% Strongly agree% Do not strongly
agree

ImpactRecognition needs fulfilled

23

51

2x

Recognition is authentic

27

53

2x

Recognition is equitable

28

52

2x

29

47

2x

Recognition is embedded
in culture

Among employees who do not plan to be at their organization in one year …
% Strongly agree% Do not strongly
agree

ImpactRecognition needs fulfilled

8

20

3x

Recognition is authentic

9

21

2x

Recognition is equitable

11

19

2x

8

19

2x

Recognition is embedded
in culture

As many organizations are experiencing first-hand, the effects of attrition can permeate throughout anorganization. Even when it does not directly affect the overall productivity or output, it still costs the organizationin terms of replacement expenses and damage to the culture.

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Focusing on recognition experiences can address both consequences simultaneously. Recognition helps toreduce turnover costs in two ways. First, recognition is critical in engaging employees — a profound insulator for
preventing attrition.13 But recognition has unique protective effects beyond engagement that provide additionalsavings. In fact, a 10,000-person organization with an already engaged workforce can save up to $16.1 million
annually by making recognition an important part of its culture.14 That same culture of recognition can preserve a
positive employee experience even amid disruptions by keeping employees connected and engaged.
Cost benefits of a culture of recognition
Company size

Turnover cost — % of salary

Engaged + Embedded culture

1,000

50%

$403,797

1,000

200%

$1,615,189

10,00050%$4,037,973

10,000200%$16,151,892

Recognition Creates Staying Power
When employees feel like their organization is invested in them, they are more invested in their organization.
Employees who have good recognition experiences are three times more likely to strongly agree they feel a senseof loyalty to their organization.
Among employees who strongly agree they feel loyal to their organization …
% Strongly agree% Do not strongly
agree

ImpactRecognition needs fulfilled

77

23

3x

Recognition is authentic

72

18

4x

Recognition is equitable

71

22

3x

74

27

3x

Recognition is embedded
in culture

13 Harter, J., & Mann, A. (2017, April 12). The right culture: Not just about employee satisfaction. Gallup.com. https://www.gallup.com/workplace/231602/rightculture-not-employee-satisfaction.aspx
14 Gallup’s algorithm uses longitudinal data from nationally representative samples to estimate actual turnover rates based on respondents’ turnover intentions(actively looking for a job, watching for opportunities or not looking) and employee engagement. Output is “dollarized” by incorporating known data on
turnover costs; the model is estimated separately for low turnover cost rates (50% of salary) and high turnover cost rates (200% of salary). Based on thisalgorithm, the reduction in turnover costs can be calculated as a function of other attributes. In this model, responses to “Recognition is an important part of
my organization’s culture” are included, and an additional cost savings above and beyond employee engagement, is identified as shown.
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Perhaps more importantly, they plan to stay put. Employees whose organizations get recognition right are far
more likely to report that they are not looking for another job.
Among employees who are not looking for another job …
% Strongly agree% Do not strongly agree
Δ73Life events are recognized20

53Work milestones are recognized16

52

Teams and groups are recognized

21

51

Recognition needs fulfilled

28

Recognition is authentic

26

47

73

Recognition is equitable

24

48

72

Recognition is embedded in culture

18

68
72
77

49

71

53

These employees are also much more likely to stay long term. Overall, only about half of employees (51%) plan tobe employed at their current job five years from now. The following figure illustrates how organizations can boost
staying power by providing the validation and acknowledgment employees are looking for at work.
Among employees who plan to be at their organization in five years …
% Strongly agree% Do not strongly agree
Δ66Life events are recognized

18

48

Work milestones are recognized

15

48

63

Teams and groups are recognized

14

48

62

Recognition needs fulfilled

22

46

Recognition is authentic

20

45

Recognition is equitable

15

48

63

Recognition is embedded in culture

14

49

63

Employees who are recognized see a future attheir organization.

23

68
65

“This is actually oneof the reasons why I haven’t reallybeen looking for work is because mymanagement has been so positive andregard to recognition of my work.”

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An Organization’s Best Advocates
Recognition is a two-way street. When organizations make a point of celebrating employees’ successes andcontributions, those employees pay it forward. They become brand ambassadors who help spread the word about
products, services and their workplace. In other words, when organizations appreciate employees for the value
they add, they add more value by attracting customers and future employees to the organization.
Among employees who strongly agree they would recommend their organization’s products or services …
% Strongly agree% Do not strongly
agree

ImpactRecognition needs fulfilled

83

30

3x

Recognition is authentic

76

26

3x

Recognition is equitable

77

28

3x

78

33

2x

Recognition is embedded
in culture

In a competitive talent marketplace, the power of the employee referral cannot be understated. Yet, only 28% of
employees strongly agree they would recommend their organization as a great place to work. But organizations
that acknowledge employees through strong cultures of recognition can boost this figure to 68% (see tablebelow). In short, when employees work in a positive environment, they tell their friends and families.
Among employees who strongly agree they would recommend their organization as a great place to work …
% Strongly agree% Do not strongly
agree

ImpactRecognition needs fulfilled

69

16

4x

Recognition is authentic

63

12

5x

Recognition is equitable

63

15

4x

68

19

4x

Recognition is embedded
in culture

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Engaged and Growing“People who feelrecognized work harderand feel better about thework that they do.”Employee engagement is the critical foundation for
high-performing teams and organizations,15 and recognition is oneof its most vital scaffolds.
Percentage engaged among employees who …
Strongly agree

Do not strongly
agree

ImpactRecognition needs fulfilled

80

21

4x

Recognition is authentic

71

18

4x

Recognition is equitable

72

21

3x

71

25

3x

Recognition is embedded
in culture

Managers and supervisors play a critical role in engaging employees.16 Employees who receive recognition fromtheir manager, supervisor or other leaders at least a few times a month are more than three times as likely to beengaged than those who receive it less often.
However, managers can lose the full force of recognition by failing to personalize it. Fifty-one percent of
employees who report being asked about their preferences are engaged, versus only 31% of those who were not— a 20-point difference in engagement.
Growing Employees Through Recognition
Recognition is an effective multitool for learning and development. At every phase of the employee life cycle,
recognition can function as a learning aid, validating good work and good behavior. It helps employees aim theircontributions through positive reinforcement.
Recognition is critical to onboarding new employees into the work and culture of an organization, helps
employees be their best throughout the employee life cycle and provides vital support for continued growth.
Recognition helps employees feel like they are being encouraged to develop.

15 Harter, J. K., Schmidt, F. L., Agrawal, S., Blue, A., Plowman, S. K., Josh, P., & Asplund, J. (2020). The relationship between engagement at work and organization
outcomes: 2020 Q12 meta-analysis: 10th edition. Gallup, Inc.
16 Clifton, J., & Harter, J. K. (2019). It’s the manager: Gallup finds the quality of managers and team leaders is the single biggest factor in your organization’s longterm success. Gallup Press.
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Among employees who strongly agree someone at work encourages their development …
% Strongly agree% Do not strongly
agree

ImpactRecognition needs fulfilled

72

18

4x

Recognition is authentic

65

15

4x

Recognition is equitable

66

19

3x

66

21

3x

Recognition is embedded
in culture

When employees receive recognition, they are also more confident in their path forward. While only 18% of
employees overall strongly agree they can see a path to grow at their organization, recognition can more thandouble that rate. Seeing a path to grow engages and inspires employees to rise to their full potential.
Among employees who strongly agree they see a path to grow at their organization …
% Strongly agree% Do not strongly
agree

ImpactRecognition needs fulfilled

46

10

5x

Recognition is authentic

41

8

5x

Recognition is equitable

42

10

4x

47

12

4x

Recognition is embedded
in culture

Public recognition can clear a path for development; it builds employees’ reputations and opens doors. As thefigure below shows, employees who receive mostly public recognition are more than twice as likely to reportseeing a path to develop than those who receive mostly private recognition.

Percentage of employees who strongly agree they see a path to growat their organization, by type of recognition received

27

Mostly public

21

Mix of public and private

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Connected and Included
Keeping employees connected to their organization’s culture has been a common concern amid the new era of
remote and hybrid work. Recognition is a simple and effective part of the solution.
As a culture-building tactic, recognition creates a consistent source of positive regard that allows employees
to participate in the culture and benefit from it, regardless of their working arrangement. When employees— whether remote, hybrid or on-site — get the right amount of recognition, they feel more connected to theirorganization’s culture.
Agreement with "I feel connected to my organization's culture," by remote work status
Among employees who feel they are getting the "right amount" of recognition
Work location% Strongly agree% Do not strongly agree

ImpactRemote58

18

3xHybrid66

18

4x

On-site

66

11

6x

Overall, only one in four employees strongly agree they feel connected to their organization’s culture. A
high-quality recognition experience will help employees feel like they are not just experiencing the culture but are
an integral part of it.
Among employees who strongly agree they feel connected to their organization’s culture …

Recognition needs
fulfilled
Recognition isauthentic
Recognition isequitable% Strongly agree% Do not strongly agree

Impact

64

14

5x

58

10

6x

59

12

5x

62

17

4x

Recognition
is embedded
in culture27

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Recognition in a remote world, according tothose living in it:“Especially because wework remotely now, so a lot of thepersonal aspects of work life are gone
… just giving a shout out and recognizing
someone’s job well done is somethingthat’s needed in the workplace.”

Employees need to feel connected to theirorganization’s culture, but it is just as important forthem to feel connected to their organization’s people.
Giving and receiving recognition is one way to form new
relationships, build bridges among teams and dissolve
tensions amid disparate goals, priorities or approaches.

Only about a quarter of employees (27%) strongly agree they havemeaningful connections with their coworkers, but those who receive recognition from peers at leasta few times a month are twice as likely to strongly agree than those who receive it less often. When thatrecognition is high-quality, the impacts are even greater.
Among employees who strongly agree they have meaningful connections with coworkers …
% Strongly agree% Do not strongly
agree

ImpactRecognition needs fulfilled

60

17

4x

Recognition is authentic

54

14

4x

Recognition is equitable

59

16

4x

58

20

3x

Recognition is embedded
in culture

These meaningful connections matter. An atmosphere of mutual respect, support and encouragement canpave the way for better teamwork and a better work environment for all that is characterized by inclusion. Whenemployees show appreciation at work, they create strong and productive partnerships and an environment where
everyone feels like they matter and belong.
Among employees who strongly agree they feel that they belong at their organization …
% Strongly agree% Do not strongly
agree

ImpactRecognition needs fulfilled

74

18

4x

Recognition is authentic

68

14

5x

Recognition is equitable

68

17

4x

66

23

3x

Recognition is embedded
in culture

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Boosting Belonging for All
While high-quality recognition improves feelings of belonging for all employees, it may be even more impactful forBlack and Hispanic employees. As organizations create initiatives to improve their diversity, equity and inclusion(DEI), they should be mindful to include a fulfilling, authentic and equitable recognition program in their strategy.
Public recognition can be particularly effective in strengthening belonging. Public displays reinforce employees’
place and value in the organization, and others see that.
Impact of belonging to their organization, by racial identity group
Black employees

Hispanic employees

White employees

Recognition needs fulfilled

5x

6x

4x

Recognition is authentic

7x

7x

4x

Recognition is equitable

4x

5x

4x

Percentage who strongly agree they feel that they belong at theirorganization, by type of recognition received

40

Mostly public

34

24

Mix of public and private

Mostly private

Making recognition personal can also amplify a sense of belonging. Employees who say their organization
recognizes life events are nearly three times more likely to strongly agree they belong at their organization. Whenemployees feel valued for their achievements and for who they are, they feel like they are more than an employee;
they are an important member of an organization.

Building inclusion through recognition:“I think itbrings our team closer
and it fosters a sense ofcommunity.”
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Cared for and Supported
In today's workplace, being “overworked and underappreciated”
is a common experience. It is also a recipe for burnout. Overall,
25% of employees report being burned out at work “very often”
or “always,” indicating that for a quarter of the workforce, energy,
motivation and productivity are dwindling.
Feeling undervalued is a drain on the employee experience anda major risk factor for burnout. Those who do not get consistentrecognition at least a few times a month are nearly twice as likely
to report being burned out always or very often. Leaving recognitionneeds unmet nearly quadruples burnout rates. Conversely, as
the chart to the right shows, providing consistent, high-quality
recognition can cut the rates of burnout in half or better.
Leaders today must also be mindful of the “human” in “humancapital” and that having a resilient organization starts withbuilding resilience in people. The best way organizations can help
reinforce the fortitude of their employees is by supporting theirhealth and wellbeing proactively, intentionally and holistically.
Recognition is an effective way for organizations to demonstratethat they care about wellbeing. Employees who receive
recognition from their peers at least a few times a month arenearly two times as likely to strongly agree their organization
cares about their overall wellbeing, and those who receive
recognition from their manager, supervisor or a leader at thatfrequency are nearly three times as likely.

Percentage “always” or “very often” burned
out at work, by organizations where …
Work milestones
are recognized

13

Life events arerecognized

12

Recognition isembedded inculture culture

12

Recognition isequitable

11

Recognition isauthentic

1025%
Employees
Overall

8

Recognitionneeds fulfilled

0%5%

10% 15% 20% 25% 30%

Making a point of recognizing events in the personal lives of their employees is an easy way to send a powerful
message that organizations care about their employees as people. Recognizing life events more than triples
employees’ perceptions that their organization cares.
Among employees who strongly agree their organization cares about their wellbeing …
% Strongly agree% Do not strongly
agree

ImpactLife events are recognized

68

20

3x

Recognition needs fulfilled

71

14

5x

Recognition is authentic

63

11

6x

Recognition is equitable

63

13

5x

Embedded in culture

68

18

4x

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Recognition is about people, not just employees.
As shown below, employees who have good recognition
experiences at work evaluate their lives morepositively overall and are more likely to be thrivingin their everyday lives.17 Organizations can help
improve employees’ lives by acknowledging theirvalue as people and contributors.

“You feel like it wasworth it working for them. You
mattered to them, not just as an employee,
but as a person … that’s an amazing feeling,
because I know that there are a lot of
employees who don’t get there.”Among employees who are “thriving” in theiroverall wellbeing …
% Strongly agree% Do not strongly agree
Δ

Life events are recognized

19

53

72

Work milestones are recognized

20

52

72

Teams and groups are recognized

19

52

71

Recognition needs fulfilled

23

51

Recognition is authentic

24

Recognition is equitable

22

Recognition is embedded in culture

18

74
73

49
51
53

73
71

17	 Gallup, Inc. (2009, August 24). Understanding how Gallup uses the Cantril scale. https://news.gallup.com/poll/122453/understanding-gallup-usescantril-scale.aspx
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Conclusion
When it comes to recognition, there’s great promise, but there is also room for improvement. Most employees are
not getting what they need from recognition because their organizations are missing the mark.
Bringing the human element back to work through recognition requires investing in it and aiming it. Organizations
can maximize their recognition efforts by targeting the five pillars of recognition: (1) fulfilling employees’ needs
for recognition, (2) giving high-quality, authentic recognition, (3) ensuring equity, (4) embedding recognition in
their culture, and (5) personalizing it.
Recognition improves business outcomes by improving the employee experience. But recognition only works
when done right. Organizations that leverage the full force of recognition don’t just “do” recognition, they live it,
every day.
By meeting their employees’ recognition needs, organizations can reap the benefits of a more engaged workforce
that is connected and empowered to grow and develop. Their employees are more likely to be thriving at workand beyond, are committed to staying and actively promote the organization to others. Overall, they are better
employees and feel better as people.

Leaders' Five Next Steps
Leaders can unleash the human element at work by taking five steps to build a better recognition strategy.
Make recognition accessible. The easier it is for managers and employees to give recognition, the more they will
do it. Make sure there are easy outlets to give all types of recognition and that managers are equipped with theresources they need — both in time and money — to make recognition count.
Make recognition an important part of the culture. Take recognition from a practice to a core value byembedding recognition in the culture. Make recognition a ritual: Make it a daily habit but also set aside designatedtimes and events to highlight it and make it special.
Train managers. Managers are an important conduit of recognition for employees. Set the expectation ofproviding recognition regularly, but also teach managers how to do it well. Educate them on the impacts ofrecognition and options for providing it in the workplace. Guide them with specific actions to motivate employees
and build strong teams through positive feedback.
Model the behavior. Leaders must set the example by providing recognition themselves. Recognize managers— they often receive the least recognition. Send recognition all the way down the chain to front-line employees;
leaders' gratitude and acknowledgment can make all the difference in their experience at work. Let employees
know that what they do is important.
Prioritize recognition. Give the recognition strategy the attention it warrants. Set aside the time, money andenergy needed to get it right. Audit the organization's current state of recognition — is it having the impact itshould? What could take it further? Make smart investments and set them up for success by thinking throughimplementation thoughtfully and making them integral to the culture.

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Methodology
Survey Methodology. Results from U.S. data are based on a survey conducted from Feb. 14-28, 2022, with 7,636
adults who are employed full-time or part-time, aged 18 and older, and living in all 50 U.S. states and the Districtof Columbia, as a part of the Gallup Panel™. For results based on these samples of national employed adults,
the margin of sampling error at the 95% confidence level is +1.8 percentage points for response percentages
around 50% and is +1.1 percentage points for response percentages around 10% or 90%, design effect included.
For reported subgroups such as managers or senior leaders, gender or race/ethnicity, the margin of error will belarger, typically ranging from ±2.1 to ±6.1 percentage points for percentages around 50% and ±1.3 to ± 3.7 forpercentages around 10% or 90%.
Results from Western Europe are based on self-administered web surveys from an opt-in sample provided by
Dynata of 5,551 adults, aged 18 and older, living in one of the following countries or regions: United Kingdom,France, Germany, Netherlands, Ireland, Switzerland, Belgium, Denmark, Finland, Norway and Sweden. The survey
was conducted from Feb. 18-28, 2022. Results from this sample are unweighted, and respondents are notdemographically representative of the countries surveyed. For details about how Dynata recruits respondents in
Western Europe, please see http://info.dynata.com/rs/105-ZDT-791/images/Dynata_Panel%20Book_2.19.pdf.
Gallup’s turnover cost model is based on a median employee salary of $54,000 annually (Bureau of Labor
Statistics, March 2022), a voluntary turnover rate of 32.7% (Bureau of Labor Statistics, 2021) and an estimatedturnover cost ranging from 50% to 200% of an employee’s annual salary. The turnover cost estimates in this report
represent the potential cost reduction in turnover expenses attributable to strong agreement with "Recognition
is an important part of my organization's culture," after accounting for effects of employee engagement.
Organizations with higher or lower median salaries, turnover rates and turnover cost ranges may experience ahigher or lower cost reduction.
In-Depth Interviews. Qualitative insights and quotes in this report are derived from 30 in-depth interviews
conducted with members of the Gallup Panel. All respondents were adults working in the United States. Random
samples were selected for recruitment of 10 individual contributors, 10 managers and 10 leaders from a variety ofprofessions and industries. Respondents’ ages ranged from 24 to 66 years of age (average age = 41 years), and
50% were female. The respondents came from a mix of racial and ethnic backgrounds, with 43% identifying as
White, 37% identifying as Black and 17% identifying as Hispanic or Latino.
Interviews were conducted by trained Gallup research consultants in a semi-structured format. Interviews wererecorded with the consent of respondents and transcribed using Zoom transcription. Qualitative analysis was
conducted by an experienced Gallup research associate who identified key themes and patterns across theinterviews. Analyses were also focused on identifying unique experiences by role, demographic characteristics
and working arrangements.

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Appendix: Cross-National Comparisons

Recognition is core to the human experience regardless of location, but not always in the same way. A
comparison between recognition experiences in the United States and several countries in Western Europe18
indicates that recognition is important to the employee experience and organizational outcomes, but there aredifferences in how types of recognition are given, received and perceived.
Key differences in recognition experiences as reported in the United States versus Western Europe are shown below.
% Strongly agree (or have)

U.S.

Western Europe

Δ (Percentage points)

Recognition program

36%

30%

6

Digital recognition software

22%

24%

-2

Bonus

33%

40%

-7

Asked about their preferences

10%

28%

-18

Monetary recognition

21%

42%

-21

At least a few
times a month

Less than a few
times a month

Δ (Percentage points)

49%

58%

-9

Received from peers

53%

68%

-15

Giving recognition

71%

78%

-7

Strongly agree

Do not strongly agree

Δ (Percentage points)

Life events are recognized

15%

17%

-2

Work milestones are recognized

23%

21%

2

Teams and groups are recognized

22%

21%

1

Recognition needs fulfilled

23%

20%

3

Recognition is authentic

32%

25%

7

Recognition is equitable

26%

24%

2

19%

19%

0

Received from manager,
supervisor or leader

Recognition is embedded
in culture

18 Please note that U.S. data reflect responses from a representative, stratified random sample recruited from the Gallup Panel, whereas European data reflect
responses from an opt-in sample provider. See the Methodology section for more details.
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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition% HaveU.S.

Western Europe

Δ (Percentage points)

Public

11%

21%

-10

Private

30%

46%

-16

Mix of public and private

58%

33%

15

U.S.

Western Europe

Δ (Percentage points)

59%

70%

-11

57%

73%

-16

Prefer public recognition

7%

20%

-13

Prefer private recognition

29%

40%

-11

Prefer mix of public and private

64%

40%

24

U.S.

Western Europe

Δ (Percentage points)

Major strategic priority

19%

51%

-32

Minor strategic priority

47%

33%

14

Not a priority

34%

16%

18

18%

55%

-37

25%

55%

-30

Preferences

Want recognition at least a few
times a month from manager/
supervisor or leader
Want recognition at least a few
times a month from peers

Prioritization

Managers and/or leaders trained
in best practices
Budget allocated35

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﻿Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

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36

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