New report reveals what makes a good recognition program at work
Recognition programs in workplaces are in need of rescuing, with a new report suggesting that tangible monetary value can drive better outcomes for organisations.
Workhuman's new global report revealed that recognition rewards carrying clear monetary value raise belonging by 28% and engagement by 21%.
"Rewards make appreciation concrete," said Tom Libretto, president of Workhuman.
"They create stories people remember and a lasting reminder of their contributions. Our new research confirms that when organisations combine recognition done right with rewards that carry real value and real choice, business outcomes will follow."
The problem with work recognition
The new report comes amid a recognition crisis in workplaces. Previous findings from the Achievers Workforce Institute warned that recognition is at risk of "disappearing from the workplace."
According to the AWI report, just 23% of employees feel meaningfully recognised at work, with only 15% saying they feel recognised weekly.
These drops triggered an impact on the workforce, with only 26% of employees feeling engaged at work.
"Productivity is slipping, trust in leadership is eroding, and fewer employees feel connected to their company's purpose," the AWI report said.
"The connection is clear: when recognition fades, so does retention, performance, and morale."
What makes a good recognition programme?
Workhuman's report stressed that attaching tangible rewards to recognition programs will help amplify the influence of appreciation.
"In a hybrid, fast-moving world where connection is harder to see, tangible rewards create visible, lasting proof of belonging – and measurable impact on performance," the report read.
How employers design rewards will affect how recognition is received by employees, according to the report.
"It's easy to love a gift, but not all gifts of appreciation create the same signal or the same results," the report read. "The experience of a reward – what it's worth, how it's chosen, and how easy it is to redeem – matters almost as much as the reward itself."
It underscored five dimensions of an effective rewards system:
- Tangible: Rewards with real value reinforce worth
- Connected: Rewards bring people together
- Memorable: Rewards that employees can share to strengthen culture
- Universal: Rewards that all employees can easily access or redeem
- Personalised: Rewards that are fit for their culture, lifestyle, or life stage
"To be effective, a rewards experience must feel consumer-grade: mobile, rich with choice, and personalised," said Sarah Whitman, SVP of eCommerce at Workhuman.
"This research shows just how significant it can be when employees are able to turn recognition awards into a high-quality, global reward experience that reflects their values, interests, and culture."
Benefits of a great rewards programme
Employers who are able to deliver on the five dimensions will receive better employment outcomes, according to the report.
Rewards that are memorable raise employees' alignment to organisational values to 35%, and increase their connection to colleagues to 25%.
"When employees post photos, mention their purchases in team chats, or share stories about their rewards, they are able to spark additional waves of good feeling, engagement, and organisational affinity," the report read.
Universal rewards are also able to raise belonging at work by 34%, while personalised rewards are more likely to be recognised as "most personally meaningful" to employees.
"Rewards that are designed and delivered well don't just make employees feel appreciated; they make recognition programs work better," the report read.
Employees who love their recognition programme and have a positive reward experience at work are more likely to understand company values, feel motivated, feel aligned with strategic initiatives, and feel a strong sense of belonging at their organisation, according to the report.
"Overall, this year's survey found that while recognition shapes behaviour and sentiment; well-designed, memorable, tangible rewards have the power to turn that recognition into lasting stories, high belonging, strong engagement, and a recognition programme people love," the report read.
