Top 21 Most Important Employee Recognition Statistics in 2025

The benefits of employee recognition and its impact on successful business outcomes may be intuitively obvious to you as an HR manager. However, you would want to have some persuasive employee recognition statistics at your disposal to strengthen your argument.

For instance, when you plan your employee recognition employee recognition program, you may begin with questions like:

• What's the effect of not having a thriving recognition culture?
• How will a successful program benefit the bottom line?
• What kind of recognition do employees prefer?
• Do they like spoken words of praise or gifts?
• Which is more meaningful to them: recognition from peers or leadership?

And so on.

This blog offers 21 employee recognition statistics to address your questions comprehensively. These statistics are further categorized under different headings to enhance clarity and organization.

Employee Recognition Statistics for Retention

1. According to the Gallup/Workhuman survey, organizations that prioritize employee appreciation have workers who are 56% less likely to look for a new job.

Recognition holds a potent power to keep employees glued to an organization. This appreciation keeps them motivated, makes them willingly sworn to the company's growth, and reduces their chances of looking for alternate job opportunities.

2. According to a survey, 46% of respondents have left a job because they felt unappreciated.

Recognition plays a significant role in employee retention. Employees are driven by recognition for their efforts. They feel demotivated to stick to the organization and prefer to leave when the basic desire for recognition is unfulfilled.

3. Study shows that 91% of HR workers agree that recognition and reward positively affect employee retention.

Combining recognition and rewards can work wonders for boosting retention levels. HR professionals also acknowledge that this combination positively impacts organizations' ability to retain employees over the long term.

Recognition Statistics Related to Employee Engagement

4. According to Gallup research,employees who strongly agree that their manager holds them accountable for their performance are 2.5 times more likely to be engaged in their jobs.

Managers play a crucial role in keeping their employees engaged. By holding them accountable for their performance and acknowledging their efforts, employees will likely experience a surge in motivation levels, thus keeping them engaged in the company's interests.

5. According to a study by Bonusly, 71% of highly engaged organizations recognize employees for a job well done, whereas only 41% of less engaged organizations do the same.

Employees are fully committed to their work in a highly engaged working environment. They take discretionary efforts to achieve company goals and appreciate others when they do the same. Thus, high engagement fuels a culture of appreciation for each other's contributions.

6. According to a Gallup study, employees who receive great recognition are 20 times more likely to be engaged than employees who receive poor recognition.

The study emphasizes that recognition is directly proportional to engagement. The greater the recognition, the more the employees get engaged with their organizations and vice versa. This highlights the significance of distinguishing between effective and ineffective recognition practices and implementing strategies to enhance them accordingly.

Recognition Statistics Related to Productivity and Performance

7. According to a study by Gartner, a well-designed recognition program can help drive an 11.1% increase in average employee performance.

Recognition has the power to influence employee performance by boosting their performance levels. Attaining a boost in performance requires organizations to develop recognition programs that cater to employees' needs and preferences. Hence, a well-designed recognition program has the potential to help organizations drive average employee performance.

8. According to a study, 69% of employees would work harder if they felt their efforts were better appreciated.

A little nudge from the organization in the form of appreciation validates their efforts and work. This validation will make them work harder to attain their goals.

Statistics Relating to Recognition with Company Values

9. A study revealed that recognition and D&I are closely connected, and companies that integrate these two areas enjoy a wide range of benefits such as a sense of inclusion among employees, an engaged workforce, a boost in productivity levels, and outperforming industry peers.

Organizations benefit in the long run when they incorporate diversity and inclusion in their recognition programs. These benefits are also reflected in the form of higher engagement levels among employees. By promoting D&I as a core value through recognition initiatives, companies communicate their commitment to prioritizing and fostering diversity and inclusivity, providing employees insight into organizational values and practices.

10. According to a study, 86% of value-based recognition programs show an increase in workers’ happiness.

When employees are recognized for demonstrating values in their approach to work, they are motivated to further integrate these values to garner recognition. Consequently, value-based recognition programs have a higher propensity to increase employees' happiness.

11. According to a Gallup study, when recognition hits the mark, employees are five times as likely to be connected to company culture

When an organization’s recognition efforts attain its desired mark, employees show more inclination toward company culture. This inclination includes employees connecting with the company culture and adhering to its values.

Statistics Related to Employee Satisfaction/Loyalty

12. According to a survey, 79 percent responded that an increase in recognition rewards would make them more loyal to their employer.

When recognition and rewards go hand-in-hand, they can foster employee satisfaction and cultivate loyalty towards their employer or organization. Loyalty is consistently reciprocated based on the organization's commitment to acknowledging employee efforts.

Statistics Related to Employees' Preference in Recognition

13. Based on a survey conducted by Bonusly, employees were asked to choose a primary language of appreciation from colleagues and leadership. The results showed a nearly equal distribution for Gifts (33%) and Words of Affirmation (32%), with Acts of Service at 25%.

Every employee harbors a distinct preference for appreciation. The survey results shed insight into the preferences of employees. The survey findings provide valuable insights into preferences like verbal or written recognition, gifts, monetary rewards, etc, enabling organizations to tailor various appreciation methods to meet individual needs. This study facilitates the development of diverse appreciation strategies, introducing variability in how recognition is expressed.

14. According to a study, 44% of respondents prefer gift cards as rewards, while 41% prefer a paid trip with peers.

Employee preferences matter when you want to show authentic and impactful recognition. Each employee is unique. What might motivate one won't necessarily motivate others. So, it is necessary to take into account what they put value in.

15. According to Deloitte, 54% of employees prefer verbal "Thank you" for their day day-to-day accomplishments, while 47% of employees prefer growth opportunities for a significant accomplishment.

Recognition comes in different forms, and employees have their own preferences for how they would like to be recognized or rewarded. Consequently, organizations should consider these while designing their recognition programs.

Recommended Resource: Types of Employee Recognition-All You Need to Know

Statistics Related to Employee Recognition Tools

16. According to a study, only 22% of managers strongly agree that their company provides them with the tools and understanding on how to recognize colleagues effectively.

Employee recognition tools make recognition easy, swift, and hassle-free. With tools at its disposal, an organization can foster a culture of recognition among everyone in the workplace. As a result, everyone will understand and adapt to a culture of recognition and recognize each other effectively.

With the assistance of virtual cloud-based recognition platforms, you can amplify or streamline the recognition process. This will help you foster a culture of recognition in the workplace. The swift and hassle-free technology it comes with will boost the willingness of employees, managers, and leaders to recognize each other frequently.

Source: Vantage Rewards

Statistics Related to Peer-To-Peer Recognition

17. According to Harvard Health, peer-to-peer recognition fortifies team cohesion by breaking down communication barriers and creating a sense of belonging and teamwork.

Peer-to-peer recognition is potent enough to strengthen collaboration among team members. It dissolves communication barriers by bringing in more flexibility to interactions and appreciation. As such, it spurts belongingness.

Source: Vantage Rewards

18. According to Gartner, peer recognition can improve workplace performance by 14%.

Peer recognition/feedback can drive a sense of positivity among team members. This appreciation will serve as a zeal for the colleagues to work harder and enhance their performance.

Statistics Related to Recognition from Leadership

19. According to a Gallup workplace survey, employees responded to who gave them their most meaningful and memorable recognition. The data revealed the most memorable recognition comes most often from an employee's manager (28%), followed by a high-level leader or CEO (24%), the manager's manager

The statistics show how employees seek maximum recognition from their managers and leaders. For them, appreciation from their leaders and mentors makes their recognition more meaningful and memorable. Such recognition gives more validation to their work.

20. According to Gallup research, 24% of employees say their most memorable recognition came from the CEO.

A high-ranking leader taking the time to show appreciation can yield a positive impression on an employee. Leaders praising the dedication, effort, or achievements of employees can significantly impact morale and engagement.

Recognition Statistics Related to Business Outcomes

21. As per a study, 90% of HR respondents agreed that an effective recognition and reward program drives business results.

An effective recognition and reward program can potentially yield the best results for businesses. Hence, it is significant for organizations to design recognition and reward programs that are effective enough to achieve desired goals.

Final Thoughts

The above statistics strongly support the need for companies to invest in an employee recognition program. It’s time you double down on your recognition efforts, too. Invest in the right tools and talent and make your way towards a flourishing culture of recognition.

Author bio: This article is written by Riha Jaishi, a content marketing professional at Vantage Circle specializing in recognition and rewards. As she draws from her years of experience in employee recognition and rewards, she continues weaving narratives through her thought-provoking blog posts. For any related queries, contact editor@vantagecircle.com