Declining recognition pulls down employee retention, performance, morale
Recognition in workplaces is slipping, according to a new report, that warned this is dragging down employee retention, performance, and morale.
Findings from the latest State of Recognition Report from the Achievers Workforce Institute (AWI) revealed that recognition is at risk of "disappearing from the workplace" in 2025.
Less than a quarter (23%) of the report's 3,600 respondents said they feel meaningfully recognised at work. Only 15% of employees also said they are recognised weekly, down from 29% last year.
"Recognition from managers — the most impactful source — also dropped from 20% to just 15%," the report read.
The drop in workplace recognition has a ripple effect on the workforce, according to the report.
It found that only 26% of employees feel engaged at work, while just 22% plan to stay in their role next year.
"Productivity is slipping, trust in leadership is eroding, and fewer employees feel connected to their company's purpose," the report added. "The connection is clear: when recognition fades, so does retention, performance, and morale."
According to the report, the fix to declining recognition is "simple."
"Employees aren't asking for grand gestures. They want frequent, authentic recognition that feels personal — not just points or perks," the report read.
It found that employees who receive meaningful recognition on a weekly basis are nine times more likely to feel a strong sense of belonging.
They are also six times more likely to see a long-term career at their company and 2.6 times more likely to be their most productive selves.
Those who receive monthly recognition are also six times more likely to recommend their company and feel a sense of belonging. They are also twice as likely to feel engaged and 1.8 times more likely to feel productive.
Meanwhile, the report underscored the importance of manager recognition, which recorded a five-point drop in 2025.
According to the findings, employees recognised by their managers are 19 times more likely to trust them.
They are also 16.5 times more likely to recommend the company and 11.7 times more likely to feel like they belong.
"When managers give frequent, meaningful recognition to their teams, their workers are more likely to bring their whole selves to work," said David Bator, Managing Director of AWI, in a statement.
Bator said managers who don't cherish their people, and are often described as "toxic," may not be understanding the science-backed power of recognition.
"Therefore, they prioritise other items on their endless to-do lists, when in fact, recognition is the single most effective tool for building high-performing teams," he said.
The report said the most resilient organisations empower their managers to make recognition a habit.
"If you want stronger outcomes, better retention, and a more connected culture — start by strengthening manager recognition," it stated.
