Employee recognition is fading fast and its absence is dragging down performance. According to Achievers’ 2025 State of Recognition report, workplace recognition has declined by 15 points year-over-year. The report, released by the Achievers Workforce Institute (AWI), reveals growing disengagement and low morale across global organizations.

AWI, the research arm of Achievers, the most widely used employee recognition software, surveyed over 3,600 employees globally. The fifth edition of the report offers a deep dive into how recognition frequency, consistency, and value have sharply deteriorated.

Recognition Directly Impacts Employee Performance

The data speaks volumes. While 90% of employees agree that recognition boosts productivity, only 23% feel genuinely valued. More than half report receiving recognition just a few times a year. At the same time, only 26% feel engaged at work, and just 23% show real enthusiasm for their roles. This growing recognition gap contributes heavily to the $438 billion global employee disengagement crisis. The drop in meaningful recognition directly correlates with lower trust and motivation, which ultimately impacts productivity and loyalty.

Recognition Is Declining, But Not Dead

Even though weekly recognition has dropped, quarterly recognition has doubled. This trend suggests employees still value recognition but struggle with consistent tools or time.

Moreover, employees who receive weekly recognition feel 9x more connected, 6x more likely to envision a long-term career, and 2.6x more productive. Boosting recognition can reduce high turnover and lost productivity worldwide.

Managers Hold the Key to Employee Motivation

Manager-driven recognition is the most powerful form of appreciation. Yet, only 15% of employees feel regularly recognized by their managers, a 5% drop from last year. This decline contributes to dwindling engagement, trust, and workplace satisfaction.

Employees who receive regular recognition from managers are:

  • 19x more likely to trust them
  • 16.5x more likely to recommend their company
  • 2–3x more engaged and productive

Still, many managers unintentionally adopt a “toxiboss” approach, demanding results without offering consistent appreciation. “You can’t be a great manager without showing gratitude,” said David Bator, Managing Director at AWI. “Recognition builds high-performing teams, but many managers don’t understand how vital it is.”

Recognition Fills the Connection Gap at Work

Today’s workforce battles isolation due to layoffs, AI-driven processes, and remote environments. Employee recognition is emerging as a crucial lifeline in this workplace disconnection crisis.

Employees who receive peer recognition are:

  • 33% more likely to feel a sense of belonging
  • 37% more likely to stay long-term

“We’re technologizing humans and humanizing tech but forgetting to humanize humans,” said Hannah Yardley, Chief People & Culture Officer at Achievers. “The right recognition strategy can bridge the connection gap and unlock true business potential.”

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News Source: Businesswire.com