Appreciation improves retention, performance, culture, and motivation. These employee recognition statistics prove it. Leverage them to your advantage. 

Turn appreciation into measurable impact

Employee recognition is key to retaining and engaging talent. It maintains morale, drives productivity, and decreases turnover.

How do we know? As a recognition software provider, we’ve seen these outcomes firsthand across our client base:

• Global Awardco customer WOW! mobile boutique™ saw employee performance increase by 120% YOY and engagement scores increase by 10% YOY after launching a peer-to-peer recognition program.
• PMG, a global independent marketing services and technology company, reduced attrition risk by 40%. The key was creating a wide range of recognition programs within the full employee lifecycle.

But we didn’t stop there—we’ve also gathered compelling employee recognition statistics from industry research and surveys that further validate the impact of effective recognition programs.

By understanding the true return on recognition, we hope you’ll feel inspired to show more appreciation to your team.

What is the business impact of recognition?

From reducing turnover to increasing engagement and performance, recognition is a proven business strategy. Top-performing companies make recognition a priority. The employee recognition metrics speak for themselves.

1. Recognition lowers voluntary turnover by 45%

When employees feel valued and appreciated by their managers and the company, they’re much less likely to want to leave. Team members who are well-recognized are 45% less likely to have left an organization two years later.

2. Recognition increases productivity and performance

Employee recognition is closely correlated with business outcomes. When companies recognize their employees, those employees are more productive.

3. Recognition from managers increases employee engagement 

When leaders take the time to show their employees that they care and appreciate them, those employees respond with higher engagement. Teams led by the least-recognizing leaders had low engagement scores (27th percentile), while those led by the most-recognizing leaders scored much higher (69th percentile).

4. Recognition improves recruitment

Recognition can help you attract and retain the best talent.

5. Employees are 3X more loyal to organizations that prioritize recognition

Employees love it when recognition is an integral part of their company’s culture. That’s why they’re more loyal to organizations that prioritize employee recognition.

6. Fair recognition makes employees 4X more likely to be engaged

Employees who strongly agree that they’re recognized fairly for the work they do are 4X more likely to be engaged at work. This creates a cycle of engaged employees, good work, and effective recognition.

7. High-performing companies are 10X more likely to prioritize employee recognition

Companies that prioritize a culture of recognition perform better. It’s that simple.

Discover the ROI of recognition—use this free calculator.

How do employees respond to recognition?

Let's take a closer look at how appreciation serves as a primary motivator for team members. We’ve explained before that genuine thanks fuels dopamine (the “reward” chemical) and oxytocin (the “trust” hormone), making employees feel appreciated and more connected to their team.

Here’s the data to prove that.

8. Recognition makes employees 56% less likely to look for a new job

Employees want to be recognized. They want to work in a place that appreciates their work and efforts. That’s why employees are much less likely to even look for a new job when recognized.

9. Without recognition, employees are 2X more likely to quit

On the flip side of things, when employees aren’t recognized enough, they are twice as likely to quit within a year. People will stay at jobs that appreciate them. 

10. Employees say recognition is the best motivator

Employee recognition improves employee motivation. Approximately 37% of employees express that it’s the best motivator!

11. Praise enhances collaboration, agility, feelings of purpose, and work quality

When teams are regularly praised for their work, they are more likely to collaborate, share information, and stay agile in the work environment. They’re also more purposeful in their work, which increases the quality. 

12. Recognition makes employees feel 5X more connected to company culture

Company culture is the foundation of keeping employees satisfied and engaged at work. And when recognition is part of your strategy, employees feel 5X more connected and invested in the culture.

13. 92% of employees will likely repeat an action after recognition

Employee recognition drives desired behaviour. That happens because when people are recognized for doing something—such as putting in extra effort or collaborating effectively—they’ll repeat that action again.

Ready to bring these stats to life in your organization? Explore how Awardco helps HR teams scale recognition.»

What do employees want from recognition?

To round out our data, we took the time to offer actionable solutions based on the employee recognition research. Drive better recognition strategies and meet your team members halfway. 

14. 80% of team members would put in more effort if they felt they were better appreciated

Feeling valued makes a difference—80% of team members say they’d work harder if they felt more appreciated.

15. 94% of employees who are recognized daily are satisfied

Recognition doesn’t have to be a big event or an expensive gift. Instead, daily expressions of gratitude can be hugely impactful. For nearly every employee, daily recognition of some kind helps them feel much more satisfied.

16. Employees prefer peer-to-peer recognition 

When recognition comes from peers, it’s 36% more likely to contribute to stronger financial performance than recognition led solely by managers.

17. Millennials and Gen Z employees are 73% more likely to want frequent recognition

Younger employees tend to value frequent recognition, while nearly half of Boomers and Gen X prefer to be recognized at least a few times per month. The takeaway? It's generally better to offer more recognition than less—but the greatest impact comes from understanding how each individual prefers to be recognized.

18. Employees notice the imbalance of recognition

Only 26% of employees feel they receive the same level of recognition as peers who perform at a similar level. This suggests that in many organizations, recognition is unevenly distributed, often influenced by factors like visibility, popularity, or other biases.

19. Symbolic rewards increase employee motivation and performance

Monetary rewards are nice, but not necessary. Symbolic rewards, such as cards, public shoutouts, certificates, social posts, etc., can significantly elevate employee motivation, performance, and retention.

Drive Measurable Impact Through Recognition

Use these reports on employee recognition to get the leadership buy-in you need to provide the appreciation your people want.

The sooner you begin, the sooner your people—and your business—benefit. Awardco makes it easy to launch recognition programs that are simple to manage and meaningful to employees.

Start now and turn recognition into measurable results. Contact us today.