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Research / Building a Culture of Recognition
by Incentive Research Foundation
Though the quality and impact of employee recognition programs vary widely, almost 90% of North American companies offer them. Strategies and initiatives differ greatly between organizations, but the fundamental principle holds true: a well-recognized employee is more likely to perform at their best and stay with their organization. This report explores best practices for weaving recognition into everyday culture, and examines how good recognition/reward program design enhances these efforts.
1. Make recognition fair, accessible, and part of everyday culture: Recognition tools and programs must work for everyone – no matter their role, level, or where they sit in the organization.
Recommendation: Encourage leaders at all levels – especially managers – to make appreciation a regular habit. Recognition shouldn’t just come from the top; peers, cross-functional teams and even customers can play a big role also.
2. Recognition Frequency Drives Engagement and Sincerity: Surprisingly, the more recognition one receives the more genuine it feels. Employees who are recognized frequently –weekly, monthly or even daily – report significantly higher engagement, job satisfaction, and perceived sincerity of recognition. Recognition that is infrequent not only loses impact but can erode trust and morale. Notably, frequent recognition is seen as more genuine, contradicting fears that too much praise feels insincere.
Recommendation: Encourage managers and peers to normalize regular recognition –tailored to recipient’s preferences – to build trust and maintain high levels of engagement.
3. Timely Recognition Increases Perceived Authenticity: Recognition delivered promptly after an accomplishment is perceived as more sincere and impactful. Employees who receive timely or immediate recognition are far more likely to rate it as genuine than those who experience delayed or rare recognition. Timeliness acts as a trust signal – making appreciation feel attentive rather than transactional.
Recommendation: Ensure recognition is delivered as close to the moment of accomplishment as possible to maximize perceived sincerity and impact.
4. Sincerity Matters More Than Monetary Value: Sincerity reduces dependance on tangible rewards. Recognition perceived as authentic has a stronger emotional and motivational effect than its tangible value. Employees with high sincerity ratings were more likely to say that even a sincere thank-you without a reward felt meaningful. When recognition is sincere, even small gestures can carry major cultural weight.
Recommendation: Coach leaders to offer authentic, specific and detailed praise that reflects true appreciation. Recognition doesn’t need to be grand or costly, it needs to be consistent, specific, and sincere.
5. Peer-to-Peer Platforms Boost Recognition Culture: Employees with access to recognition platforms are more likely to be recognized frequently, from a broader set of sources (managers, peers, customers, suppliers), and report higher engagement and ease of recognizing others. Regrettably, access to these platforms appears income contingent: only 17.7% of respondents earning under $25K having access, compared to 58.1% of those earning $150K or more. Platforms alone aren’t sufficient, but when well-designed, integrated and made available to the entire workforce, they democratize and accelerate appreciation across the organization.
Recommendation: Implement and actively promote an enterprise-wide, user-friendly peer-to-peer recognition platform to increase inclusivity and frequency of appreciation.
6. Recognition Program Design Should Evolve Beyond Individual Performance: While individual performance is the most common trigger for recognition (87%), team contributions, collaborative behaviors, and cultural citizenship (e.g., helping colleagues) are under-recognized. Shifting toward more balanced recognition criteria can encourage teamwork, trust, and shared purpose – critical for modern work environments.
Recommendation: Expand recognition programs to reward collaboration, values-based behavior, and team achievements – not just individual output.
7. Tangible Rewards Enhance, But Are Not Essential: Nearly 75% of employees believe that tangible rewards enhance the effect of recognition, but 47% say a reward under $50 is sufficient. This demonstrates that meaningful recognition doesn’t have to be expensive. Sincerity matters more than tangibility. Recognition and rewards must be relevant, proportionate, and paired with sincere appreciation.
Recommendation: For routine recognition of behaviors or achievements, sincere appreciation alone suffices. For that which goes above and beyond, design tangible rewards that are modest but meaningful, offering variety and personalization. Reserve high-cost incentives for the most vital and most difficult achievements (e.g., top 5% performers, President’s Club, exceeding monthly or annual quota in sales, etc.).
8. To the Degree Possible, Personalize Recognition & Rewards: The preferred frequency and form (private, public, etc.) of recognition varies by individual worker. When recognition is paired with a tangible reward, monetary bonuses are the most preferred, followed by extra time off, gift cards and experiences. To a degree, age (generation) and income level offer clues, but preferences vary widely even within these groups.
Recommendation: Encourage managers and peers to learn about team member preferences, and to share their own. Offer a mix of non-monetary and monetary rewards, including verbal praise, gift cards, extra time off, and experiences, to cater to varied employee preferences.
9. Continuously Measure & Improve Recognition Programs: The need to determine quantifiable and measurable KPIs, then track, measure, derive insights, and report on them, is as vital for recognition as it is for any other important program.
Recommendation: Use data from recognition platforms to monitor the effectiveness of recognition programs and make adjustments as needed. Implement feedback loops to understand employee perceptions of recognition and continuously improve program design.
Employee recognition and worker engagement are closely intertwined drivers of organizational success. Research shows that employees who are regularly appreciated tend to be substantially more productive and engaged than those who aren’t. For example, employees who are recognized weekly are three times more likely to say they are engaged, productive, and committed to their jobs compared to those never recognized. Moreover, findings from The Conference Board’s US job satisfaction survey for 2025 reveals that recognition is among the top five (among 28) influencers of overall job satisfaction.
Conversely, a lack of recognition correlates with disengagement and turnover: In 2016, Gallup found that only about 1 in 3 U.S. workers strongly agree they received praise in the previous week, and those who feel ignored are twice as likely to say they’ll quit within a year. Our own results from the survey conducted for this paper suggest that the frequency of recognition has not improved in the nine years since. Indeed, only 28% of 1,078 respondents report that they receive recognition daily or weekly and 37% say they get it rarely or never. Thus, while the large majority of organizations offer recognition programs, it appears that only a minority operate these programs effectively – with adequate quality, consistency and frequency of recognition.
This indicates a large, missed opportunity for employers. Doing it well demands a significant investment of time and effort but meaningful recognition is a relatively low-cost way to improve morale and retention. In our survey 58% of respondents expect only a sincere thank you when they do something “above and beyond.” And while three-quarters believe that a tangible reward with a thank you increases its effect, 47% say a reward value of under $50 is enough to produce that impact, and the large majority are satisfied with a reward worth less than $100.
Is $50 or even $100 worth it? Workplace studies have repeatedly confirmed that recognition boosts not only engagement and productivity, but also loyalty, creating a positive cycle of performance and commitment. These are consistent findings across a long and large body of research. Our survey is just the latest to expose strong connections between the frequency, amount, timeliness, and sincerity of recognition to respondent commitment and engagement.
Importantly, recognition addresses core human needs – feeling valued and seen – which drives discretionary effort. McKinsey research reveals that up to 55% of employee engagement is driven by nonfinancial recognition (e.g. praise, appreciation), making it the single biggest driver of positive employee experience. Accordingly, this paper argues that organizations should strive to create a culture of recognition by:
Our findings on workplace recognition frequency highlight significant opportunities for improvement (Figure 1). Over two-thirds of respondents (68.7%) reported receiving recognition only monthly or even more rarely, with more than one-third (38%) indicating recognition as an infrequent experience (rarely or never). Conversely, over a quarter (28%) experience recognition weekly or daily, suggesting pockets of organizations or teams with more consistent acknowledgment practices.
The relatively low incidence of daily recognition (5.7%) suggests a gap many organizations should aim to address. Additionally, the 3.3% who report never receiving recognition underline a critical risk area, potentially impacting morale, motivation, and retention. Leaders and HR professionals should carefully examine these insights to develop strategies promoting a culture of regular, meaningful acknowledgment, ensuring employees feel consistently valued for their contributions.
The survey findings highlight that immediate managers play the central role in providing workplace recognition, with 71% of respondents acknowledging their manager as the most frequent source of appreciation. This underscores the pivotal influence frontline leaders have in shaping employees’ experiences of acknowledgment, motivation, and job satisfaction. Recognition from peers also emerges prominently (41.7%), indicating that horizontal recognition – peer-to-peer appreciation – is a valuable aspect of organizational culture and collaboration (Figure 2).
Interestingly, over one-third of respondents (35.8%) report receiving recognition from customers or clients, reflecting the importance of external validation in employee motivation and sense of accomplishment. Senior leadership recognition (29.4%), while meaningful, remains comparatively less frequent, highlighting an area where increased engagement could strengthen organizational cohesion and strategic alignment. Minimal recognition from suppliers (6%) is unsurprising, but suggests an untapped opportunity in fostering broader professional relationships. Organizations could benefit from nurturing diverse recognition channels to cultivate a more comprehensive culture of appreciation.
Recognition within organizations is primarily performance-driven, with nearly 87% of respondents citing individual performance as a leading factor (Figure 3). Organizations typically prioritize and reward personal achievements, aligning recognition closely with individual productivity and excellence. However, recognition for team or overall company performance is also significant (67.5%), highlighting that collective achievements also receive substantial acknowledgment, promoting a sense of teamwork and shared success.
If a reward is a ‘Hey thanks for working so hard this year’ vs. a ‘If you accomplish X, you’ll get Y,’ it elicits a really different [less engaged] response from the team, especially when it comes to a team goal. When leaders waffle the language, we end up with the worst of both worlds from a morale standpoint. – Expert Practitioner
Moreover, the data reveal notable attention to behaviors beyond purely performance-based metrics, with over half of respondents (56.7%) indicating recognition for helping colleagues or contributing positively to organizational culture. Conversely, recognition based on tenure (38%) and morale boosting efforts (36.5%) is less common. These insights suggest a balanced recognition approach in program design, combining performance acknowledgment with appreciation of team collaboration and good corporate citizenship (e.g., exhibiting the values of the organization). Good design also allows for the celebration of longevity, and general morale-boosting celebrations which are also beneficial in cultivating a thriving workplace culture.
Effective program design – especially in the present era of increasing workplace complexity – should aim to encourage team-based collaboration at least as much as good individual outcomes. While individual recognition recognizes excellence and productivity, it may not sufficiently encourage (or may even discourage) the force multiplier effects of good collaboration and teamwork. Program design that recognizes and rewards team or – to a smaller degree – company-wide successes (67.5% in our survey) should be made more prevalent, to focus on collective accomplishments and teamwork.
The comparatively lower (56.7%) prevalence of recognition for behaviors related to supporting colleagues (e.g., peer coaching, knowledge sharing) suggests a key area for cultural enhancement. Expanding recognition practices beyond performance alone can significantly enrich a workplace culture, deepening employees’ sense of belonging, appreciation, and overall engagement, while building relationships and trust. Organizations that strategically broaden their recognition and reward criteria to emphasize good citizenship and values-based behavior in their design, may achieve greater cultural cohesion and sustained employee satisfaction.
Verbal praise stands out as the most prevalent form of recognition (80.3%), indicating organizations strongly favor immediate, personal acknowledgment that reinforces daily contributions and enhances employee morale (Figure 4). Similarly, public acknowledgment, reported by over half of respondents (55.9%), demonstrates a recognition culture that values visibility, social reinforcement, and collective affirmation of individual achievements.
Conversely, more formal forms of recognition, such as “best employee” awards (22.9%), plaques (15.7%), and trophies (10%), are less common, indicating that many organizations prioritize accessible, frequent, and cost-effective recognition strategies over formal ceremonies or relatively scarce symbolic rewards. While the dominance of verbal and public praise for encouraged behaviors and achievement (over tenure and other non-performance related achievements) is positive, organizations might consider enriching their culture by thoughtfully integrating diverse forms of recognition into their program design, which might cater to varied employee preferences and further deepen the sense of value and belonging across their workforce.
Our data on recognition timeliness provides meaningful insights into the health and responsiveness of workplace recognition cultures. Positively, nearly half (46.7%) of respondents report receiving timely recognition, suggesting that many organizations understand the importance of promptly acknowledging achievements to reinforce positive behaviors and maintain employee motivation (Figure 5). However, only about one in ten employees (10.5%) experience immediate recognition consistently, pointing to an opportunity for improving immediacy, which can significantly enhance feelings of validation and appreciation.
Incentivizing the act of giving recognition is a design philosophy to be considered, at least temporarily as a catalyst. For example, if you give 10 (unique) shout outs a month you get a $25 gift card (or points). And if you get 10, you get $25. If the team as a whole has 50% (or higher) engagement, you might bump the benefit higher. – Expert Participant
Conversely, approximately 43% of employees report delays or rare acknowledgment. Specifically, recognition is sometimes delayed for nearly a quarter (23.8%), while nearly one-fifth (19%) experience frequent delays or a near-total absence of recognition. Delays can dilute the effectiveness of recognition, diminishing its impact on morale, engagement, and overall motivation. Organizations aiming to strengthen their culture of recognition should focus on reducing these gaps by prioritizing timely, consistent acknowledgment, ensuring recognition more effectively fulfills its intended role of reinforcing employee contributions and fostering a positive workplace environment.
As one of our expert reward program designers pointed out, it is also vital not to forget past accomplishments, such as a major achievement in Q2 of one year being forgotten by Q1 of the following year. Leaders should strive to repeat acknowledgement and appreciation of outstanding results in the recent past before laying out goals and incentives for the current period.
A mean score of 67 out of 100 on the perceived genuineness of recognition suggests that, broadly speaking, recognition is viewed more positively than negatively – employees generally feel that the appreciation they receive is real and meaningful. This is an encouraging sign that many organizations are making efforts to ensure that recognition is not merely transactional or performative. However, it also presents a mixed view of the sincerity of recognition in organizations and highlights considerable variation in the quality of recognition in practice.
A colleague said this, and it’s stuck with me: ‘I don’t want a pat on the head for doing my job, but I do want people to know what it takes to do my job.’ This says HOW to be specific. It might feel specific and authentic to say ‘Thanks for making sure we hit that deadline even though it was a total scramble,’ but ‘Thanks for gracefully running interference with our other clients while you managed the fire storm with X’ goes further because it recognizes the skill of managing client expectations well, vs. just the action. – Expert contributor
A score of 67 implies that a significant portion of recognition may still come across as routine, superficial, or disconnected from employees’ actual contributions. In cultures where recognition feels inauthentic or automated, its motivational power is diminished, and trust in leadership can erode – a true culture of appreciation is not likely to emerge. For organizations aiming to foster a thriving culture of recognition, this data suggests a need to focus not just on frequency or visibility of acknowledgment, but on its sincerity. Recognition that is timely, specific, and delivered in a personal and authentic way will likely elevate this score and deepen its impact on morale, engagement, and retention.
Sincerity is not a “nice to have,” it’s a cultural cornerstone. Organizations should coach managers, leaders and peers to offer authentic, specific, and timely recognition. This isn’t a soft skill; it’s a strategic investment in morale, performance, and retention.
An average score of 59 out of 100 on the effectiveness of recognition platforms or tools suggests that many organizations have yet to fully realize the potential of technology in supporting a culture of appreciation. While the presence of such tools indicates a commitment to institutionalizing recognition, the middling score reveals that these platforms may not be meeting employee expectations or translating into meaningful, everyday experiences of being valued.
This highlights a critical gap: tools alone do not build a culture of recognition – how they are used, and whether they feel personal, timely, and authentic, is what determines their impact. A platform that is perceived as clunky, impersonal, or inconsistently used can diminish trust and disengage employees, undermining well-intentioned efforts.
The value of peer-to-peer tools lies in how they are embedded into daily workflows, the authenticity of the recognition exchanged, and the perceived fairness and transparency of point distribution and rewards. If they are overly transactional or poorly promoted, they risk becoming another underused system. – Expert contributor
To build or strengthen a recognition culture, organizations should ensure that tools are not only functional but also aligned with the values of their teams. Recognition and reward program designers should determine and communicate guidelines that determine what kinds of behaviors and achievements deserve recognition and the level of recognition warranted. Platforms can be used even for simple appreciation (a thank you for answering a question, for example) but even here, recognition should be timely and specific. Other guidelines might recommend when a manager or peer should award points or another form of tangible reward with sincere appreciation instances (for example, where a person has gone well above and beyond). Guidelines are helpful for managers and peers to develop consistency, and therefore, fairness and credibility.
Leaders should model the genuine use of recognition and rewards, and the system should be designed to elevate and personalize real moments of appreciation – not just automate them (AI, for example, might make suggestions for a note of appreciation, but should not be relied on entirely to offer genuine appreciation). Closing the gap between efficiency and impact is key to making recognition a vibrant, integral part of organizational life.
Our survey responses reveal a hierarchy of preference for tangible rewards, offering insights into how organizations can design recognition strategies that resonate. Monetary bonuses stand out as the most preferred reward (average rating: 7 out of 8), indicating cash incentives remain a strong motivator and a central expectation in recognition programs. However, non-monetary rewards also feature prominently: extra time off (5.7) and gift cards (5.7) rank closely behind, reflecting a growing appreciation for flexibility and convenience as part of the reward experience.
The broad range of preferences (experiences and merchandise also rated 4 or above) suggests that employees value variety and want tangible rewards (Figure 6). Charitable donations in one’s name and the option indicating that tangible rewards are not motivating received the lowest scores, signaling that most employees still expect some form of material acknowledgment for their more exceptional efforts. Indeed, more than 75% of responses said that they believe recognition combined with tangible reward adds impact.
For organizations looking to build or enhance a culture of recognition, these insights underscore the importance of choice and personalization. Offering a reward mix that emphasizes top preferences – particularly bonuses, time off, flexible gift cards and experiences – while allowing room for individualized options can boost engagement and demonstrate that recognition is not only present but meaningful. A thoughtful approach that reflects what employees truly value sends a powerful message and accelerates the creation of a culture of recognition.
In response to our survey statement: “When I have gone above and beyond, a sincere thank-you is sufficient recognition, and a tangible reward is not necessary” an average score of 58 out of 100 points was recorded. This speaks to the power of simple recognition and appreciation but also suggests that workers want more than words alone. The score reveals that many employees view tangible rewards as an important reinforcement, especially when their contributions exceed expectations, such as working late several days in a row to meet a deadline.
We asked our survey-takers: “To what degree do you believe that combining recognition with a tangible reward enhances its overall impact” A score of 76 out of 100 on that question suggests that while verbal or symbolic recognition is valued, its influence is often amplified when accompanied by a material expression of appreciation – whether it’s a gift card, bonus, or experience.
Our responses concerning the minimal value of a tangible reward (to have meaning) offers guidance for program designers aiming to make their tangible recognition efforts more impactful and cost-effective. Many respondents (29.3%) indicated that a reward (either cash or non-cash) valued between $25 and $49 is the minimum threshold for it to feel meaningful (Figure 7). A further 17.5% are satisfied with rewards under $25, suggesting that a significant portion of the workforce values the gesture as much or more than the tangible value of the reward, so long as the act of recognition is thoughtful and well-timed. This data also signals that a pragmatic (i.e., economical) balance between appreciation and affordability works for a good deal of the activity, achievements, and behaviors an organization might wish to recognize.
The above doesn’t imply that every act of recognition must include a physical gift – leaders should encourage use of the sincere thank-you for routine recognition, such as stopping for 15 minutes to help a colleague work through a problem or speaking up in a meeting to ensure that a colleague is heard – yet, the results do point to a clear employee preference: when someone goes above and beyond, a tangible reward helps underscore the sincerity and significance of the recognition.
Interestingly, relatively few employees required high-value rewards to feel acknowledged. Only 16.5% cited $100–$250, and just 8% suggested more than $250 (mainly from the $150k+ income group). Meanwhile, 9% of respondents indicated that a sincere thank-you or non-tangible form of appreciation is sufficient. This range of expectations suggests that tangible rewards matter, but largely in reinforcing the recognition. Of course, where top performers are recognized for extraordinary achievements – an annual reward to the top 10% of performers, or acknowledgement of a major individual or team achievement on a project – public and formal recognition with a much higher reward value is appropriate.
To strengthen a culture of workplace recognition, designers should consider integrating scalable, equitable reward mechanisms alongside verbal or public acknowledgment. When used thoughtfully, tangible rewards don’t undermine authenticity – they reinforce it. The key is proportionality and personal relevance. By aligning tangible rewards with meaningful achievements, organizations can reinforce desired behaviors, boost morale, and deepen the emotional impact of recognition.
A score of 69 out of 100 on the question “How easy is it for you to formally recognize a colleague’s good work?” suggests that, while many employees find the process relatively accessible, there is still room to reduce friction and encourage more consistent peer recognition. This moderately high score indicates that formal recognition mechanisms exist in many organizations, but they may not always be designed optimally to be intuitive, well-promoted, or seamlessly integrated into day-to-day workflows. Streamlining the process for peer recognition – making it fast, intuitive, and visible – can increase participation and normalize the practice of appreciation. Embedding recognition touchpoints into existing tools (like collaborative team platforms, project management platforms or recognition-specific tools) encourages informal as well as formal recognition, both vital in building a culture of recognition.
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To move more employees from moderate to high satisfaction through recognition and rewards, designers should focus on cultivating a culture of recognition that is inclusive, authentic, and aligned with day-to-day realities. Recognition doesn’t need to be grand or costly, it needs to be consistent, specific, and sincere. When recognition becomes a natural and expected part of the employee experience, it can shift sentiment upward, boosting not only satisfaction scores but also retention, morale, and organizational pride.
The Incentive Research Foundation would like to recognize the following expert advisors and contributors to this research:
The study looks at which rewards resonate with employees by career phase and income group, then discusses ways programs can change and expand to maximize effectiveness.
We discuss the neurochemical activity that takes place when a reward taps emotion and becomes memorable. We also look at how these neurochemicals can lead to changes that alter long-term habits and behaviors.
