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Employee reward and recognition (or, as we like to say, recognition and reward) has received a lot of attention in the last decade. Companies around the world are spending more than $65 billion (AUD) on employee reward and recognition programs and our research shows that 78% of managers prioritise timely appreciation and are craving recognition at work.

If you're building the business case for investing in employee recognition and reward, you may not know where to start, or how hard you should be pushing. But the truth of it is that organisations are losing their people because they’re failing at recognition.

Learn more about our reward and recognition solutions »

Fixing recognition isn't a 'nice-to-have,' it's a must-have, for your business and for your people.

Here are a few other employee recognition statistics, from our own research and from other sources:

Our research says...

Top R&R

1. Moments of recognition aren't seen or celebrated by other people. 

2. It doesn't allow for continuous or immediate recognition. 

3. Employees aren't motivated by the rewards they are given.


of HR workers agreed that an effective recognition and reward program helps drive business results.


of HR workers agree recognition and reward has a positive effect on employee retention.

Only 20%

of managers strongly agree that their company provides them with the tools and understanding on how to recognise colleagues effectively.


of HR employees surveyed said they would be likely to invest in recognition and reward programs within the next year. 


of employees would rather work for a company that had a culture where people were praised and thanked regularly for doing good work, than for a company that paid 10% more but offered no praise or thanks.

The importance of recognition and motivation

Our research shows that... 

Almost half of employees agreed that they would leave a company that didn’t praise or thank them enough for the work they did.

Only 26% of managers strongly agreed that their company praises or thanks employees for the good work they do based on their company’s values, and almost a third agreed that they struggle to find the time to give out thanks and praise.

Over seven in 10 employees want their employers to do more to motivate them.

The top reasons for employees feeling demotivated are: feeling invisible or undervalued (43%), having a bad manager (43%) and lack of recognition (40%).

And being unmotivated has an alarming effect on employees, with the top five being: 


A decline in mood (worsens)


A reduction in productivity levels


A decline in mental health  


A reduction in quality of work


A decline in the quality of diet

Other research agrees...

Here are a few other reward and recognition statistics worth bookmarking:

It’s estimated that global businesses lose approximately $7 trillion each year due to lack of motivation.


Organisations where recognition occurs have 14% better employee engagement, productivity and customer service than those without.

Bersin by Deloitte

Companies with a recognition culture have 31% lower employee turnover.


The magic number for recognition: It’s recommended to recognise an employee every seven days.


75% of employees receiving at least monthly recognition (even if informal) are satisfied with their job.


Peer-to-peer recognition is 35.7% more likely to have a positive impact on financial results than manager-only recognition.


Fancy having these statistics in your back pocket? Download a full PDF below.

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Hend Dabash

Based in our Melbourne office, Hend spends most of her day speaking to HR professionals, and loves discovering what they are most proud of and how she can add value and help make an impact to the initiatives that are on top of their people priority list. Being human and pushing the boundaries is what she does best, along with sharing how Reward Gateway takes steps to making the world a better place to work.

Employee Engagement Specialist

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