Kylie Terrell
We’ve always known recognition matters. But our latest data shows just how powerful it really is, especially when it comes from a manager.
In our research, The Appreciation Index, we found that managerial recognition is the top driver of employee appreciation in Australia. And when people feel appreciated? They’re more engaged, more productive and far more likely to stick around. And it’s not just about retention. Manager-led recognition plays a huge role in shaping how people feel at work every day. That makes it a critical part of the employee experience.
What’s more, relationships with managers are the top factor in overall job satisfaction with 69% of employees saying their manager has the greatest impact on their mental health. That's more than their doctor or therapist.
So if your goal is a better employee experience, you need your managers to be active participants in recognition.
The flip side? As we also know from our survey of over 1,000 employees that only 23% of Aussie workers say they feel appreciated right now, down from 38% last year. Entry-level employees, women, and those in large organisations are among those who report feeling the least recognised. That’s a big gap, but it’s also a big opportunity.Here's what stood out from our Appreciation Index:
- Employees who feel appreciated are 72% more likely to go above and beyond
- And 70% more engaged in their roles
- Along with a number of other positive outcomes
Why managers make all the difference
Recognition from a manager doesn’t have to be big or showy. It’s about genuine, timely, human moments that say: “I see what you did and it matters.”
These everyday moments play a huge role in how people feel about their work, their teams and their organisation. Done well, they build connection and trust. They boost motivation. And they turn a good employee experience into a great one.
But we know the reality. Managers are under pressure, juggling priorities, and recognition often gets pushed down the list or left to HR to drive. And that’s where the right habits, tools and support can make all the difference.
4 ways to help managers recognise more (and better)
1. Make it a habit
Recognition should be part of your weekly rhythm, not saved for performance reviews. Encourage managers to start team meetings with a shout-out or share a moment of impact from the week. These small practices build psychological safety and momentum over time.
Tip: Use “Mission Mondays” or “Thank You Thursdays” to embed regular moments of appreciation into your comms calendar.
2. Automate the milestones
From work anniversaries to birthdays and onboarding milestones, automation ensures key moments don’t get missed, especially in fast-paced or hybrid environments.
3. Give them simple tools
Recognition shouldn’t be difficult. Whether it’s an eCard, points-based reward, or a peer shout-out, make sure managers have a platform that makes it easy to say thanks on the spot.
Introduce frameworks like AVI (Action–Value–Impact) to guide the way managers give meaningful feedback, especially for newer leaders.
For example: “Thanks for jumping in to help onboard Marcus. That support made his first week smoother and got him contributing faster.”
Bonus: A digital “recognition wall” helps amplify those moments and spreads the feel-good ripple across teams.
4. Lead from the top
Leadership sets the tone. When leaders model consistent and specific recognition, it sends a message that appreciation is a part of the company culture.
We know that recognition from senior leaders, especially the CEO and Executive Leadership Team, is among the most impactful forms of acknowledgment. That’s particularly true for employees earlier in their careers, who are often looking for affirmation that they’re on the right path.
So, how do you bring this to life? Start by activating your execs to lead with social recognition. At a minimum, they should be acknowledging team milestones and individual contributions publicly on internal comms, town halls or your recognition platform.
These moments don’t need to be polished or scripted. In fact, the more human they are, the better. A quick note of thanks, a shout-out in a team meeting, or highlighting someone’s impact in a leadership update. All of it shows your people that their work matters, and that their leaders see it.
The takeaway
If you want to improve your employee experience, start with your managers.
They have the most influence over whether people feel appreciated, seen and supported at work. And when employees feel appreciated, they’re more likely to stick around, bring their best and contribute to a stronger culture. Recognition from a manager isn’t just a nice touch. It’s a business lever. A wellbeing booster. A trust-builder. And it’s the easiest, most effective step you can take to improve the employee experience.
Looking to improve your employee experience? Let’s explore how manager-led recognition can lead the way.
