Awardco Releases New Research Showing How Recognition Directly Impacts Engagement and Retention

The State of Recognition report reveals how the method, frequency, and meaning of recognition shape employee motivation and performance.

SALT LAKE CITY, Dec. 10, 2025 /PRNewswire/ -- Awardco, the leading employee recognition and rewards platform, today released a new research report from Awardco's Center of Excellence. The cross-industry study uncovers how recognition influences employee engagement, inclusion, retention, and well-being, offering leaders data-backed insights into the moments and methods that matter most.

As AI adoption accelerates and workplaces undergo significant transformation, the research finds that recognition remains one of the most effective ways to reinforce human connection, confidence, and motivation. Employees who receive no recognition experience a 40-point drop in engagement, underscoring the cost of inaction for organizations navigating cultural and operational change.

The report highlights three core findings shaping modern recognition. First, how recognition is delivered matters: company awards, manager emails, and milestone celebrations create the greatest impact, while quick chat messages show minimal effect.

Second, frequency is the strongest predictor of engagement. Employees recognized consistently are significantly more likely to:

• Be engaged (2.3x)
• Stay at the company (1.7x)
• Feel included (2.1x)
• Report high well-being (2.4x)

Additionally, the research shows that engagement drops sharply when managers go more than three months without recognizing their teams.

Finally, meaningful rewards drive deeper connection. While gift cards remain popular, employees who prefer team activities, swag, or personalized items show higher engagement—proving that meaning, not only flexibility, motivates people. The report also provides practical steps for leaders to build recognition into daily workflows and scale it effectively.

"Recognition is not a 'soft' skill—it's a measurable driver of performance and culture," said Steve Sonnenberg, Co-Founder and CEO of Awardco. "This research reinforces that when employees feel seen and appreciated, organizations thrive."

As organizations navigate shifting expectations and rapid technological change, Awardco's findings offer a practical roadmap for building cultures of appreciation where people feel valued, supported, and motivated to do their best work.

Download the full report here.

Awardco is the leader in employee rewards and recognition and helps organizations build culture, incentivizes performance, and powers modern engagement strategies. With the largest reward network in the world and the most customizable and flexible employee recognition solution in the industry, Awardco is the leader in employee recognition and rewards.

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SOURCE Awardco