A thankless task is costing billions in lost productivity

Most employees receive little recognition, with only 23% feeling valued for their contributions

A thankless task is costing billions in lost productivity

Only 23 percent of employees feel meaningfully recognised at work, according to Achievers Workforce Institute’s (AWI) 2025 State of Recognition report—revealing a growing recognition gap that is contributing to disengagement, lower productivity, and reduced workplace trust. 

The report, now in its fifth year, draws on survey data from 3,600 employees worldwide.  

It finds that while 90 percent believe recognition would improve their productivity, and 91 percent would put in more effort if their contributions were valued, the current reality shows a substantial decline in recognition frequency and effectiveness. 

More than half of employees say they are recognised only a few times a year or less. 

Engagement levels have dropped in parallel: only 26 percent of employees report feeling engaged at work, while just 23 percent describe themselves as enthusiastic.  

The report connects these findings to a broader $438bn global disengagement issue. 

For employers, the implications go beyond morale.  

Employees who receive meaningful weekly recognition are 9 times more likely to feel a sense of belonging, 6 times more likely to see a long-term future with their organisation, and 2.6 times more likely to be highly productive.  

AWI links consistent recognition with significant cost avoidance related to turnover and underperformance. 

While weekly recognition has declined sharply, quarterly recognition has more than doubled in the past year. The report suggests this shift reflects employees’ willingness to recognise others, even as access to tools or time for consistent recognition remains limited

Manager-driven recognition continues to have the greatest impact.  

Workers who feel recognised by their managers are up to 19 times more likely to trust them, 16.5 times more likely to recommend their company, and 2–3 times more likely to report higher engagement, productivity, and connection.  

Despite this, only 15 percent say their manager regularly recognises them—a drop from 20 percent last year. 

AWI identifies this gap as evidence that many managers fall into the “toxiboss” category—those who demand high performance but fail to acknowledge efforts meaningfully. 

“The data reaffirms a truth many of us have known for years: you can’t be a great manager if you don’t express gratitude,” said David Bator, managing director of AWI.  

He explained that when managers give frequent, meaningful recognition, employees are more likely to engage fully at work.  

However, many managers overlook this, not out of indifference, but because they fail to understand the science-backed power of recognition—and instead focus on other tasks, even though recognition is one of the most effective tools for building high-performing teams

The report also underscores the role of peer recognition in addressing a growing workplace disconnect, accelerated by economic uncertainty, layoffs, and the increased use of AI.  

Employees now often interact more with technology than with coworkers, with recognition emerging as a simple yet impactful tool for restoring connection. 

Employees regularly recognised by peers are 33 percent more likely to feel a strong sense of belonging and 37 percent more likely to envision a long-term career with their organisation.  

According to the report, this suggests peer-driven recognition plays a vital role in strengthening workplace ties. 

“In today’s workplace, we're technologizing humans and humanizing technology, but we're missing the opportunity to humanize humans,” said Hannah Yardley, chief people and culture officer at Achievers. 

She added that with the right strategy, tools, and culture, recognition can help close the connection gap and unlock the full potential of both people and business. 

While recognition has not disappeared entirely, AWI notes that it now arrives later, less often, and with diminished impact.  

In an environment marked by persistent instability, the report positions recognition not as a morale booster, but as a foundational tool for maintaining productivity, retention, and workforce cohesion.