From “Thank You”
to Thriving
A DEEPER LOOK AT HOW RECOGNITIONAMPLIFIES WELLBEING

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

Table of Contents
2

Introduction

3

Wellbeing and Strategic Recognition

5

The Synergy Between Recognition and Wellbeing

		 6 How Recognition and Wellbeing Predict Top Performance,

Pay Equity and Job-Searching		 7 How Does Your Recognition Strategy Affect Outcomesfor Employees With Low Wellbeing?

12

Next Steps for Leaders

13

Methodology

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

Introduction
Employee recognition is more than a nice-to-have — it’s essential. When done right,
it touches every critical element of employees’ personal and professional lives andunlocks a powerful tool for leaders to revitalize wellbeing.
Let’s be blunt: Employees are struggling with stress, burnout and loneliness like never before. It’s no surprise thatfour in 10 U.S. employees say their job is negatively impacting their mental health.1 You read that right: Forty
percent of Americans who showed up — or signed on — to work today are struggling more in life because of it.
So, what are organizations doing about it? Not enough, apparently. Fewer than one in four employees say theirorganization cares about their wellbeing2 — nearly half the number who said the same before the COVID-19
pandemic rocked the workplace. These data suggest the workforce is headed toward a tragic wellbeing crisis if
things don’t change.
It’s time for business leaders and managers to consider — and implement — the innovative and research-backed
solutions we know will help. This isn’t a cliché call-to-action; it’s a reminder of the woefully untapped tool thatevery person reading this sentence has at their disposal: recognition.
In previous research, Gallup and Workhuman established an extensive connection between employee
recognition and wellbeing, finding employees who receive the right amount of recognition for their work have:• Lower burnout: Employees are up to 90% less likely to report being burned out at work “always” or“very often.”• Improved daily emotions: Employees are up to two times as likely to report having experienced a lot ofgratitude the previous day and about 40% less likely to report having experienced a lot of stress, worry
and sadness.
• Stronger relationships: Employees are seven times as likely to strongly agree they have meaningfulconnections or a best friend at work, and as much as 10 times as likely to strongly agree they belong.
But the complicated issue of employees’ low wellbeing deserves deeper investigation. We know recognition
boosts wellbeing, and wellbeing touches nearly every aspect of an employee’s personal and professional life.
Unpacking the intricate connections between recognition and wellbeing can pave the way for better businessoutcomes and thriving workplaces.
In this report, Gallup and Workhuman unpack the relationship between recognition and wellbeing andhow, together, they can help or harm employee performance, job-searching tendencies and feelings of
pay equity. We also share next steps for leaders to act on, today.

The fact of the matter is great recognition, coupled with great wellbeing, takes performance to a whole
new level — but recognition done poorly can undermine those benefits.

1 Witters, D., & Agrawal, S. (2022 November). The Economic Cost of Poor Employee Mental Health. Gallup.com. https://www.gallup.com/workplace/404174/
economic-cost-poor-employee-mental-health.aspx
2 Harter, J. (2022 March). Percent Who Feel Employer Cares About Their Wellbeing Plummets. Gallup.com. https://www.gallup.com/workplace/390776/
percent-feel-employer-cares-wellbeing-plummets.aspx

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

Wellbeing and Strategic Recognition
First, let’s recap how Gallup and Workhuman define wellbeing and strategic recognition.
Through decades of research, Gallup has identified five key elements of wellbeing that contribute to people’s
thriving, struggling or suffering in life.
• Career wellbeing — refers to how people spend their days and whether or not they generally like what they
do with their time.
• Social wellbeing — refers to people’s relationships with others and whether or not they have meaningfulconnections and positive interactions with others.
• Financial wellbeing — refers to people’s economic stability and standard of living and whether or not they
have the funds they need to provide for themselves and/or their family.
• Physical wellbeing — refers to people’s health and physical condition and whether or not they have theenergy and endurance to be productive each day.
• Community wellbeing — refers to people’s daily environment and whether or not they feel satisfied,connected and engaged with the areas in which they live.
To summarize how people are doing in their life overall, Gallup asked more than 10,000 working adults in the
U.S. how they view their lives, then bucketed people into three wellbeing levels that differentiate how their lives
are really going:

Thriving
Wellbeing

Struggling
Wellbeing

Suffering
Wellbeinghigh wellbeing acrossmost elementsa mix of high, medium or low
wellbeing across all elements

low wellbeing acrossmost elements

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

Broadly speaking, Gallup defines recognition as giving and receiving praise, appreciation, acknowledgment andthanks. But to do recognition strategically requires more than a reactive and occasional “thank you.” Gallup andWorkhuman have identified five pillars of recognition that are critical to driving the impact of recognition.
T H E F I V E P I L L A R S O F S T R AT E G I C R E CO G N I T I O N

Fulfilling
Employees’
Recognition
Expectations

Authentic

Personalized

Equitable

It isn’t just a“checklist”
thing.

One sizedoesn’t fit all.

It’s given fairly,
without playing
favorites.

The amount
you receive
makes sense.

Embeddedin an
Organization’s
CultureIt’s integrated
into theday-to-day.

Similar to wellbeing, some employees surveyed are getting the best in each pillar of recognition, while others arecraving thanks. Most are receiving recognition that hits some, but not all, of the recognition pillars.
Gallup studied survey results from more than 10,000 U.S. working adults to identify three categories ofrecognition experiences that describe the types of praise, appreciation, acknowledgment and thanks people areexperiencing at work.

Great
Recognition

Inconsistent
Recognition

Poor
Recognition

the best recognition
experiences across all pillars

a mix of stellar and lackluster
recognition experiences
across pillars

the worst recognition
experiences across all pillars

Now, let’s explore the roles wellbeing and recognition play in key employee experiences that lead tothriving organizations.

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

The Synergy Between Recognition
and Wellbeing
We’ve already established that wellbeing and employee recognition are connected. But how do they influenceeach other? And what happens when an organization prioritizes one without also focusing on the other?
In our latest analysis, we looked across many different performance outcomes to better understand what leads tothriving employees and businesses. We found that high wellbeing and greater strategic recognition significantly
predict employees being top performers, their perception of pay equity, and their likelihood to not actively belooking or watching for other job opportunities.
TA B L E 1

Employee Outcome
Performance
Fair Pay
Job-Searching

Corresponding Survey Item
Has your manager or leader told you that you are a top performer?
I am paid fairly for the work I do.
To what extent are you currently looking for a new primary job?

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

How Recognition and Wellbeing Predict Top Performance, Pay Equity
and Job-Searching
Employees with thriving wellbeing (wellbeing that is strong in most elements) are more likely to be told they’rea top performer and feel like they’re paid fairly, and are less likely to be actively looking or watching forjob opportunities.
By the same token, those whose wellbeing is suffering (low wellbeing across most elements) are experiencing
quite the opposite — they’re less likely to be told they’re a top performer, less likely to feel their paychecks are
fair, and more likely to be actively searching for another job or watching for other job opportunities.
TA B L E 2

Top Performance, Fair Pay and Job-Searching Across Wellbeing Levels
Wellbeing
Level

Performance

Fair Pay

Job-Searching

Thriving

74%

60%

42%

Struggling

55%

30%

44%

Suffering

42%

18%

62%

We see a similar and strong pattern with employee recognition. Employees with great strategic recognition
experiences at work are more likely to hear praise for their performance, to perceive their paychecks as fair, andare less likely to be actively looking or watching for another job.
What’s more, employees with great strategic recognition experiences at work are also more likely to be thrivingin their lives overall. In contrast, just like employees with suffering wellbeing, employees with poor recognition
experiences are less likely to be told they are a top performer and feel their paychecks are fair, and more likely to
be looking for another job or watching for other employment opportunities.
TA B L E 3

Top Performance, Fair Pay, Job-Searching and Wellbeing Across Recognition Levels
Recognition
Level

Performance

Fair Pay

Job-Searching

Thriving
Wellbeing

Great

76%

69%

37%

72%

Inconsistent

63%

20%

47%

58%

Poor

33%

8%

67%

39%

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

How Does Your Recognition Strategy Affect Outcomes for
Employees With Low Wellbeing?
A deeper look into our latest data reveals how a combination of different levels of wellbeing and strategic
recognition predict employee experiences across all three areas.
The results show strategic recognition and thriving wellbeing independently predict outcomes — and great
strategic recognition experiences can buffer the toll suffering wellbeing takes on employees’ performance,
perceived fairness of pay and job-searching tendencies.

In short, when people’s wellbeing is struggling or suffering, recognition matters even more.

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

Performance
In our research, we found that across the United States, 54% of employees have been told by a manager orleader that they’re a top performer at work. Employees who have suffering wellbeing are told they’re a top
performer at a significantly lower rate: 42%. However, when suffering employees have great strategic recognition
experiences, they are told they’re a top performer by their manager or leader at a rate of 70%.
Here’s where things take a turn for the worse: Employees who are thriving (doing well in their lives overall),but have poor recognition experiences, are much less likely to be a top performer than their peers with better
recognition experiences. Only 44% of thriving employees with poor recognition experiences have been told
they’re a top performer by their manager or leader at work (compared with 74% of thriving employees overall
who have been told they’re a top performer, when recognition is not considered).
Consider the figure below, where the rate of employees being told they’re a top performer remains at 70%
or higher for people with great recognition experiences, regardless of their wellbeing level. Recognition isbuffering the damaging effects of low wellbeing on employees’ likelihood they will be called a top performer bymanagement or leadership.
FIGURE 1

Percentage of Employees Told They Are a Top Performer by Manager or Leader% Overall74% Great Recognition

82% Inconsistent Recognition

overall

65

73

55

% Poor Recognition

70

66

overall

42

44
35

Thriving Wellbeing

57

Struggling Wellbeing

overall29

Suffering Wellbeing

You might be wondering: Are the people with poor recognition experiences just not that great at their jobs?
This is where a robust recognition strategy comes in, because people should be recognized for more than justthe quality of their work. Our research shows employees who receive recognition for life events and workplace
milestones — both unrelated to performance — are three times as likely to strongly agree their organization
cares about their wellbeing as those who don’t. Yet, only 23% of employees strongly agree their organization has
a system for recognizing these types of events.
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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

Perception of Fair Pay
Our study also found only 31% of surveyed U.S. employees strongly agree their paycheck is fair. This isn’t atremendous surprise, given the current economic turbulence, but it sheds light on the need for employees to bevalued in more ways than a paycheck.
Workers who are thriving feel they’re paid fairly at a significantly higher rate (60%) than those who are strugglingor suffering (30% and 18%, respectively). However, employees across all wellbeing levels are more likely toperceive their pay as fair if they experience great strategic recognition, compared with their peers who haveinconsistent or poor recognition experiences. For example, the rate of employees who strongly agree theirpaycheck is fair remains at a minimum of 63% for those with great strategic recognition experiences, across all
wellbeing levels (See Figure 2).
Things become much more complicated when wellbeing and recognition are imbalanced. Employees who are
thriving in their lives overall, but have poor recognition experiences, feel they’re paid fairly at a rate of just 6%.
FIGURE 2

Percentage of Employees Who Strongly Agree They Are Paid Fairly% Overall% Great Recognition% Inconsistent Recognition% Poor Recognition

77

60

66

overall

63

30

33

overall

19
6

Thriving Wellbeing

18
11

Struggling Wellbeing

overall16
6Suffering Wellbeing

This doesn’t mean praise is a substitute for adequate pay. Instead, it shows that amid the struggles that comewith a lower level of wellbeing, employees are more likely to feel their paycheck aligns with their expectations
when they’re appreciated strategically, too. Your people are more than just a paycheck; it’s time to start treatingthem like it.

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

Job-Searching
Fifty percent of employees in our survey were either actively looking or watching for job opportunities.
When employees have thriving wellbeing, less than half (42%) are actively looking or watching forjob opportunities.
But again, the data show how misalignment between recognition and wellbeing can send things awry.
Struggling employees are more likely to have one foot out the door and it’s magnified for those who also don’t
feel appreciated at work. Sixty-two percent of suffering employees are looking or watching for job opportunities.
Among those with poor recognition experiences, this rate soars to 75%. That means three in four employees
whose wellbeing is suffering and who are poorly recognized are actively seeking or watching for a way out of
their organization.
But there’s hope for this group: When employees have suffering wellbeing, but are experiencing great strategic
recognition, only 40% of them are actively looking or watching for job opportunities.
Figure 3 illuminates this effect. Especially among struggling and suffering employees, great strategic recognition
experiences are buffering the relationship between low wellbeing and job-hunting.

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

FIGURE 3

Percentage of Employees Who Are Actively Looking or Watching for
Job Opportunities% Overall% Great Recognition% Inconsistent Recognition% Poor Recognition

75

62

61

42

42

49

overall

40

Thriving Wellbeing

44

overall57
overall42
32Struggling Wellbeing

Turnover is incredibly expensive. Past Gallup and Workhuman researchfound that a culture of recognition can reduce turnover costs at a
10,000-person organization with an already engaged workforce by up to$16.1 million dollars.
The patterns in our latest analyses further validate the importance ofrecognition in the workplace — especially for employees with struggling
and suffering wellbeing. And the large percentages of U.S. workers who
receive little to no recognition at work leave huge amounts of untapped
potential sitting on the table.

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40Suffering Wellbeing

In all cases, the businessbenefits of high wellbeing
are greatly enhancedby optimum recognition
and greatly damaged bypoor recognition.

From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

Next Steps for Leaders
The return on investment is clear: When employees have thriving wellbeing and are receiving the best
recognition experiences possible, they’re more likely to be told they’re a top performer and to feel likethey’re paid fairly, and are less likely to be actively looking or watching for job opportunities. That’s a massive
opportunity to improve business outcomes by empowering (and recognizing) employees.
Here are four strategies leaders can deploy to simultaneously increase recognition and wellbeing to create
positive change in their organization:

1.

2.

3.

4.

Link wellbeing and recognition strategies. Review your existing programs or practices before making
any changes. Is your organization all-in on wellbeing, but sub-par on recognition? What about the
opposite? Consider how you’re currently allocating resources for wellbeing and recognition in yourorganization and figure out where and why they might be falling short. Seek and recognize feedback
from managers and employees to identify how improvements can be made at each level of theorganization to promote recognition and wellbeing together. Be strategic when addressing these gaps.
Consider supporting your employees by providing — and promoting — opportunities to focus on theirwellbeing. Then, find ways to recognize people who pursue them, such as giving awards to employees
who successfully track daily steps and preventative wellness checks.
Empower your managers. While everyone in the organization is responsible for giving recognition andencouraging wellbeing among their peers, managers play a pivotal role in establishing these as key partsof the workplace culture. Educate every manager on the importance of recognition and wellbeing, andunderscore the important synergy between the two. Regardless of the tools or budget at your disposal,
every manager should be equipped to recognize employees strategically by leveraging the five pillars
and to have conversations with their team about wellbeing.
Executives lead the way. While managers are often employees’ primary recognition role model,
employees are still looking to company leaders to set the tone. Whether it be recognizing someone for
their good work on a project or implementing policies to prioritize work-life balance, employees arewatching what their leaders are doing and taking note. When it comes to recognition and wellbeing, bethe change you want to see in your organization; others will follow suit.
Create opportunities and celebrate healthy habits. Life gets busy. And it can be hard for employees
to prioritize their personal wellbeing. Show support for your employees by helping them put theirhealth first. Consider implementing company-wide wellbeing challenges that include opportunities
for employees to recognize one another’s efforts. These initiatives will not only promote employee
engagement, but will foster a culture of wellbeing and recognition. Whether it’s encouraging
workgroups to establish monthly step goals or promoting employees’ participation in an annual 5k forcharity, celebrate your employees for taking steps to establish healthy habits — it benefits everyone in
the long-run!

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From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing

Methodology
These results are based on a Gallup Panel web study completed by 10,026 working U.S. adults, aged 18 andolder, fielded February 8-28, 2023. The survey was conducted in English. Individuals without internet access were
not covered by this study. Respondents were recruited from the Gallup Panel, supplemented from a third-party
sample provider (Dynata). There were 3,137 Black, 3,863 White and 2,791 Hispanic respondents.
The Gallup Panel is a probability-based panel of U.S. adults whom Gallup selects using address-based sampling
methods and random-digit-dial phone interviews that cover landlines and cellphones. Demographic targets
were specified for the third-party sample provider to improve representativeness of the sample. Sample sourceswere integrated through propensity score matching, and the combined sample for this study was weighted
to be demographically representative of the U.S. adult population, using the most recent Current Population
Survey figures.
For results based on this sample, the maximum margin of sampling error, which takes into account the design
effect from weighting, is ±1 percentage point at the 95% confidence level. Margins of error for subgroups
are higher. In addition to sampling error, question wording and practical difficulties in conducting surveys canintroduce error and bias into the findings of public opinion polls.

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