New report reveals how HR leaders can improve appreciation, recognition in the workplace
Appreciation and recognition should be embedded in workplace culture to improve employee retention in organisations, according to a new report, which warned of the huge cost of attrition as neglected employees seek new jobs.
The latest report from the Achievers Workforce Institute (AWI) warned that the estimated cost of attrition in the United States for next year could reach between $1.3 trillion and $5.1 trillion based on median salary and standard replacement ranges.
The huge cost comes as 34% of employees plan to get a new job in 2026, while just 25% of employees envision a long career with their current company.
"The takeaway is simple: appreciation isn't optional – it's a strategic lever for engagement and retention," the report read. "When appreciation is embedded in culture, engagement follows – and so does retention."
According to the report, some of the steps that employers can take to embed appreciation in the workplace include:
- Make recognition frequent and inclusive – weekly, not yearly
- Empower every employee to recognise peers, not just managers
- Connect recognition to values, growth, and wellbeing so it feels meaningful
- Listen deeply and act on feedback to ensure programmes resonate beyond HR
- Audit recognition practices regularly to identify gaps and improve consistency
The report also stressed that managers should be equipped with the skills to lead with recognition and support. They can start by:
- Making recognition a habit, not an afterthought
- Training managers to coach, not just manage tasks
- Building systems for regular 1:1s that focus on growth and connection
"Because when managers recognise and support their teams, employees don't just stay – they succeed," the report read.
Facing a recognition crisis
The findings come as a previous report from AWI warn that recognition is at risk of "disappearing" in workplaces.
It revealed that only 23% of employees felt meaningfully recognised at work, and only 15% felt recognised weekly.
"Recognition from managers – the most impactful source – also dropped from 20% to just 15%," the previous report warned.
The latest AWI report stated that recognition from managers is a "game-changer."
It revealed that employees who receive regular connection from their manager are more likely to feel supported in their growth and feel connected to their organisation.
Those who don't get regular recognition, however, feel less connected to their organisation and are more likely to leave for a better manager.
"Recognition doesn't just make employees feel good — it strengthens relationships, builds trust, and reduces turnover risk," the report read.
Appreciation from colleagues offer similar benefits, according to the findings. Employees who feel appreciated are more likely to feel a sense of belonging and see career growth opportunities.
Just 28% of highly appreciated employees are also looking for a job, much lower than the 71% of employees who feel undervalued.
"These numbers tell a story HR leaders can't ignore: appreciation fuels connection, trust, and retention. Without it, organisations face not just disengagement, but cultural erosion."
