[Success Story] Discover how Wipro boosts employee loyalty with automated Long Service Awards.
+

Top 21 Most Important Employee Recognition Statistics in 2025

VC LOGO
Vantage Circle

A Global Employee Engagement Platform

   
5 min read   ·  

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 Gallup, 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.

Statistics on organizations who prioritize employee appreciation and the results they get

2. 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.

3. 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.

4. 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.

Statistics on the impact of well-designed recognition programs

5. 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

6. 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.

7. 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.

8. 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 on recognition increasing loyalty among employees

9. 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

10. 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.

Peer-to-peer-recognition

Source: Vantage Rewards

10. 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 on peer recognition

11. 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.

Recognition statistics from leaders

12. 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.

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

Riha Jaishi,

Share

+
+
Book My 30-min Demo

The Ultimate Guide to Employee Rewards and Recognition

The Ultimate Guide to Employee Rewards and Recognition