UNLEASHING THE HUMAN ELEMENT AT WORK:

Transforming Workplaces
Through Recognition
Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Table of Contents
2 Executive Summary
4 Introduction
4 Bringing the “Human” Element Back to Work

6 Detailed Findings
6 Unpacking Workplace Recognition

11 The Five Pillars of Recognition

19 Investing in Recognition

20 Driving Impact Through Recognition

32
Conclusion
32
Leaders' Five Next Steps
33
Methodology
34
Appendix: Cross-National Comparisons

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Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Executive Summary
Globally, organizations are facing a monumental moment of transition
in the world of work, one that is bound to have a lasting impact. Not
only are the nature and context of work changing — employees’ needs
are shifting too. Only one in four employees strongly agree they feel
connected to their culture, and only about one in three strongly agree
they belong at their organization.

To build the right workforce for the future and leverage its capabilities,
leaders must take a human-centered approach to building their employee
experience and employer brand. It starts by demonstrating to employees
they are valued by recognizing their contributions.

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Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Key findings from this report include:

Many organizations are missing out on the benefits of
recognition by not investing in or prioritizing it.
• Eighty-one percent of leaders say recognition is not a major strategic priority for their organization.
• Seventy-three percent of senior leaders say their organization does not offer managers or leaders
best‑practices training for employee recognition.
• Nearly two in three leaders say their organization does not have a budget allocated to recognition.
• Creating a culture of recognition can save a 10,000-employee company up to $16.1 million in turnover
costs annually.

When recognition hits the mark, employees are:

73% 56% 44%

less likely to “always” or less likely to be looking or more likely to be “thriving”
“very often” feel burned out watching for job opportunities in their life overall

5x 4x 5x 4x
as likely to feel connected as likely to as likely to see a path to as likely to recommend
to their culture be engaged grow at their organization their organization to
friends and family

There is not enough recognition going around, despite managers

and leaders reporting that they frequently give it.
• Sixty-seven percent of leaders and 61% of managers say they give recognition a few times a week or
more, versus 42% of individual contributors.
• Comparatively, 40% of employees report receiving recognition only a few times a year or less from a
manager, supervisor or other leader at their organization.
• Only 23% of employees strongly agree their organization has a system in place to recognize work
milestones; 15% strongly agree they have a system for recognizing personal events in employees’ lives.

Recognition has the most impact when it is:

• fulfilling employees' expectations and needs — but only 23% strongly agree they get the right amount
of recognition for the work they do
• authentic — but only one-third strongly agree the recognition they get meets this bar
• equitable — but only one-quarter strongly agree recognition is given equitably at their organization
• embedded in the culture — but only 19% strongly agree recognition is an important part of the culture at
their workplace
• personalized — but only 10% report being asked about their preferences for receiving recognition

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Introduction
Bringing the “Human” Element Back to Work
The importance of human capital has never been more evident, as the resilience of the workforce amid a global
crisis has kept the world running. But recent trends, including declines in employee engagement and increased
demands for workplace flexibility, coupled with the volatility of the job market itself are putting new pressure on
organizations to be mindful of the "human" element at work. They cannot simply offer jobs; they must create an
environment where employees want to work and can be their best.

The future of work starts with showing employees that they are valued now. Recognition is a simple way
organizations can demonstrate their investment and commitment to their employees and inspire them to feel
connected, confident and cared about — ensuring they leverage the full force of their human power at work.

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A Human-Centered Approach to the Employee Experience

Building the future of work using a human-centered approach starts with understanding the employee experience
from a human angle.

Employees bring their wellbeing, or lack thereof, to work with them every day. It shows up in their productivity
levels, work quality, interactions with other associates and how they contribute to the organization. Employees
want to believe their organizations — i.e., their managers, coworkers and even senior leaders — care about them
as people.

Organizations can show they care by celebrating who employees are and what they bring to the table. When
employees are recognized for their contributions and achievements, they feel that they matter.1 In this way and
others, workplace recognition is critical to building an employee experience that meets employees' human needs.

Despite being a fundamental employee need,2 only one in four worldwide strongly agree they have received
recognition for their work in the last week. When organizations move that bar up to six in 10, they stand to gain
a 28% improvement in quality and 31% reduction in absenteeism.3 Recognition can also reduce attrition and the
turnover costs that come along with it, as explored later in this report.4

Analysis of thousands of employees' perspectives — from front-line workers to managers and senior leaders
— triangulates on a key message that is more critical now than ever: Recognition isn’t just a nice-to-have; it is a
core “human" element in the employee experience that drives engagement, performance and retention.

This report is designed to help leaders harness the power of recognition to build a better, more human experience
at work. Results discussed here clearly show that recognition is imperative to building strong workplaces
and represents a significant opportunity for workplace evolution.5 The data reveal the forms and functions of
recognition, the five essential pillars of a solid recognition strategy, and the critical next steps leaders should take
in constructing an approach that meets real human needs.

1 Workhuman. (2021). How the great resignation will shape HR and the future of work. https://www.workhuman.com/resources/reports-guides/how-the-great-
resignation-will-shape-hr-and-the-future-of-work
2 Dvorak, N., & Mann, A. (2016, June 28). Employee recognition: Low cost, high impact. Gallup.com. https://www.gallup.com/workplace/236441/employee-
recognition-low-cost-high-impact.aspx#:~:text=Gallup's%20data%20reveal%20that%20the,or%20a%20thank%2Dyou%20card
3 Clifton, J., & Harter, J. K. (2019). It’s the manager: Gallup finds the quality of managers and team leaders is the single biggest factor in your organization’s long-
term success. Gallup Press.
4 Gallup has developed longitudinal models that predict actual turnover based on turnover intentions and employee engagement, then estimate overall turnover
costs. When recognition is added to this algorithm, there are additional cost savings.
5 For context, drivers of workplace outcomes (e.g., engagement, inclusion, etc.) that lead to impact factors of "two times" are generally seen as substantial and
meaningful impacts; that characteristics of recognition studied in this research have multiple times that impact — sometimes up to six times — is noteworthy.

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Detailed Findings
Unpacking Workplace Recognition
Bringing recognition to life and harnessing its power starts with understanding what it is and how it is experienced
in the workplace — essentially, the “what, when and how” of recognition.

What Is “Recognition,” and When Should It Be Given?

In this report, recognition refers to praising, acknowledging or expressing gratitude to employees for who they are
and what they do. It involves taking time to thank employees, give them credit for good ideas and acknowledge
their accomplishments.

Workplace recognition often focuses on work output and work-related achievements. However, recognition can
also honor work-related milestones, like promotions and work anniversaries. Drawing attention to these events
serves a dual purpose: It celebrates employees’ achievements while sending important messages about the value
placed on progress and continued commitment. Approximately a quarter (23%) of employees strongly agree their
organization has a system for recognizing these types of events.

Organizations can send an even more powerful message by celebrating the human behind the work. By
commemorating birthdays, weddings and other personal events, organizations show they care about employees
as people. However, only 15% of employees strongly agree their organization has a system in place to recognize
life events.

When an employer recognizes life events and work milestones, employees are …

3x 3x 30%+
as likely to strongly agree they as likely to strongly agree more likely to say
feel connected to culture their organization cares they plan to be at their
about their wellbeing organization in five years

Real employees explain what

recognition means to them: “What you’re doing is
not a thankless job, that it’s part
of the team and it’s part of the whole
operation that we’re doing.”

“I value your
opinion; you’re an integral
part of our organization.”

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Although recognition often singles people out, it can also honor a group effort. Twenty-two percent of employees
strongly agree groups and teams are recognized at their organization. When they are, it reinforces the importance
of being part of and working as a unit.

The setting where recognition is given — and particularly who is present — can be as important as the recognition
itself. Most employees (58%) receive both public and private recognition, but nearly a third (30%) receive it mostly
in private; 11% receive it mostly in public settings.

While private recognition is often described as personal and meaningful, public recognition has distinct benefits in
building a culture of recognition. Visible displays of recognition can showcase an employee's value and magnify
the amount of recognition given. When people witness recognition, they often extend it themselves, resulting in a
ripple effect that can be felt throughout an organization.

How Should Recognition Be Given?

Recognition is not one-size-fits-all. While organizations may have their own style of recognition, having a formal
recognition system has distinct benefits. Formal programs make recognition more salient, which in turn helps
people make the time and space for this important ritual. However, only about one-third of employees say their
organization has a formal recognition program.

Increasingly, employee of the month, annual awards ceremonies and other traditional forms of recognition are
being augmented with newer solutions. Digital platforms and software programs can provide a natural conduit for
recognition that easily integrates into most modern workplaces and make recognition more accessible, especially
for geographically dispersed workforces. Having these systems in place demonstrates to employees that their
organization sees recognition as a worthwhile investment of time and money.

Some workplaces offer a financial incentive with recognition. About one in five employees say they receive a
monetary reward with recognition. When organizations offer financial rewards, employees are more likely to
strongly agree they belong and that they see a path to grow at their organization (30% and 41%, respectively).
They are also 28% more likely to recommend their organization as a great place to work.

The data show that having a recognition program or platform is necessary, but simply having one is not enough. Only
when programs are well-implemented and embedded in the culture do employees and organizations reap the benefits.

36% 22% 21%

of employees say of employees say of employees say
their organization their organization their organization ties
has a recognition uses a digital a monetary reward
program recognition platform to recognition
or software

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Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

How Often Should Recognition Be

21%
Given, and Who Should Give It?
Just as recognition can come in many forms, it
can also come from a variety of sources. Most
employees receive recognition from multiple
sources, but not always at the same frequency. Half
of employees say they receive
report receiving recognition from their manager,
recognition from a manager, supervisor supervisor or a leader about as frequently as they
or other leader at their organization receive it from coworkers, but three in 10 receive
at least a few times a week it more often from their peers; two in 10 receive it
more often from leaders.

While recognition from managers, supervisors and

leaders serves important purposes, peer recognition

40%
is no less meaningful. As the table below shows,
employees say they want recognition from peers just
as much or more often than they want it from their
manager, supervisor or leaders.

of employees say they receive How often would you like to receive recognition
recognition from a manager, supervisor from [the following] at your organization?

or other leader a few times a year or less

% Prefer a % Prefer a
few times few times
Source
a week a month
or more or more

27 %
Manager,
supervisor or 21 59
other leader

Peers 23 57

of employees say they receive

recognition from their peers at
least a few times a week

34%
of employees say they receive
recognition from their peers
a few times a year or less

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Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

Overall, about one in five employees (21%) report receiving recognition a few times a week or more from a
manager, supervisor or leader; 27% receive it as often from peers. Conversely, 40% say they receive recognition
from their manager, supervisor or a leader a few times a year or less. One in three report receiving it from peers at
the same rate.

How often do you receive recognition from [the following] at your organization?

% A few % A few % A few % Less

Source % Daily times times times than once % Never
a week a month a year a year

Manager,
supervisor 5 16 28 26 9 6
or other leader

Peers 7 20 26 21 6 7

Note: “Don’t know/Does not apply” answers not shown. Due to rounding, percentages may sum to total ±1%.

Experiencing consistently low levels of recognition is a drain on the employee experience and workplace culture
that can have serious repercussions. When organizations fall short on showing employees they are valued, they
risk losing their employees altogether.

Employees who receive recognition only a few times a year or less from each of these sources are …

Manager, supervisor or other leader Peers

5x 3x
as likely to be actively disengaged as likely to be actively disengaged

74% 39%
more likely to say they do not plan to be at more likely to say they do not plan to be at
their organization in one year their organization in one year

27% 24%
more likely to be struggling more likely to be struggling

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It Is as Important to Give as to Receive

Recognition is a self-generated machine: For employees to receive recognition, they must also be active
participants in a culture of recognition. Overall, 48% of employees report giving recognition at least a few times a
week, but managers and leaders are much more likely to report giving recognition frequently.6

Percentage of employees who frequently* give recognition, by management level

80%
67
61
60%
+19 +13 42
48% Employees -6
40% Overall

20%

0%
Leaders Managers Individual Contributers

Note: Due to rounding, percentages may sum to total ±1%.

* A few times a week or more

6 In this report, managers are defined via self-report as responsible for the work output of other employees and may be either project managers or people
managers; leaders are also determined by self-report as “senior leaders” who manage other managers.

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Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

The Five Pillars of Recognition

All recognition matters, from simple, day-to-day “thank-you’s” to
companywide awards. But not all recognition is equal. Five factors are
critical to driving its impact: Recognition must be fulfilling, authentic,
equitable, embedded in the culture and personalized.7

1.  Fulfilling

2.  Authentic

3.  Equitable

4.  Embedded in the Culture

5.  Personalized

7 Extensive quantitative and qualitative research has demonstrated that these five factors are more highly associated with the positive impacts of recognition
than the type of recognition, source or setting of recognition, presence or absence of formal programs, and presence or absence of monetary recognition.

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1.  Fulfilling
There is no “magic number” for how frequently recognition should be given, as employees' individual needs vary.
Rather, organizations should target providing a consistent and reliable experience of being appreciated to fulfill
employees’ basic human need to feel valued and validated.

Most employees want to be recognized at least a few times a month, but this should be regarded as the bare
minimum.8 The data show there is no such thing as “too much” recognition — as long as it is genuine and
appropriately given. As shown below, more than 40% of employees view the right amount as a few times a
week or more.

Percentage of employees who strongly agree Percentage of employees who strongly agree
they receive the "right amount" of recognition they receive the "right amount" of recognition
from managers/leaders, by frequency from peers, by frequency
 % Right amount   % Not the right amount  % Right amount   % Not the right amount

17 17
Daily Daily
2 4

24 24
A few times A few times
a week 14 a week 19

28 24
A few times A few times
a month 28 a month 27

14 12
A few times A few times
a year 29 a year 23

1 2
Less than once Less than once
a year 11 a year 7

0.4 2
Never Never
8 9

8 Providing recognition at least a few times a month is the minimum frequency necessary to see positive effects on engagement, culture, wellbeing, turnover
intentions and other key outcomes.

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Currently, only 23% of employees strongly agree they get the right amount of recognition for the work they do,
meaning nearly three-quarters of employees are missing the steady reinforcement and appreciation they need
to help them be their best.9 This low percentage also indicates that many organizations are missing out on the
benefits seen when employees feel that their recognition needs are being fulfilled, including those shown below.

Employees who feel fulfilled by

Employees who do not are …**
recognition are …*

4x 8x
as likely to be engaged as likely to be actively disengaged

less than 1/2 4x

as likely to be looking or passively as likely to be actively
watching for job opportunities looking for another job

44% 62%
more likely to be “thriving” more likely to be “struggling”
in their life overall in their life overall

* Employees who strongly agree they receive the right amount of recognition for the work they do.
** Employees who disagree that they receive the right amount of recognition for the work
they do.10

Providing more frequent recognition can help organizations

ensure they are meeting employees' needs, but the success
of a recognition strategy should not be judged solely by
whether a frequency quota is being met. It can be easy for
organizations to overlook the simple truth: If employees
do not feel fulfilled by their recognition experience, then
employers are missing the mark. Creating a fulfilling
recognition experience has far more impact than frequency
alone.11 Recognition is about validating effort, value-added
and an employee's inherent worth.

9 Mosley, E. (2020). Making work human: How human-centered companies are changing the future of work and the world. McGraw Hill.
10 Disagree is measured as a “1” or “2” on a five-point scale; looking at only “strongly disagree” (“1” only) yields even more extreme impact.
11 Impact of “strongly agree” responses to “I receive the right amount of recognition for the work I do” is greater across the outcomes measured than frequency
of recognition from either managers or peers.

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2.  Authentic
Although giving the right amount and type of
recognition is critical, empty words or gestures will
“I think it’s just as
not land. What makes recognition impactful is
what it means to individuals — about themselves, detrimental to give too much
their job, their teams or workplace — and the [recognition] for absolutely nothing
organization. If recognition is not perceived to be … It has to be genuine recognition
authentic, it can undermine the experience.
appropriately given.”
Only about a third of employees strongly agree
the recognition they receive is authentic, indicating
a considerable opportunity for employers to make
recognition meaningful. In particular, Black and Hispanic
employees are highly attuned to authenticity: Black employees are 79% more likely to be thriving,
and Hispanic employees are 69% more likely, when they can strongly agree the recognition they
receive is authentic.

When employees strongly agree the recognition they receive is authentic, they are more likely to strongly
agree with …

Black Hispanic White

employees employees employees
I see a path to grow at
8x as likely 5x as likely 5x as likely
my organization

My organization cares about

8x as likely 6x as likely 6x as likely
my wellbeing

I would recommend my
organization as a great 7x as likely 6x as likely 5x as likely
place to work

Thriving 79% more likely 69% more likely 42% more likely

Recognition becomes more meaningful when it is clear why it is being given. Telling employees how their work
made an impact takes the words “good job” to a new level. Tying monetary rewards to a specific achievement or
goal sends a different message than giving everyone a bigger paycheck at the end of the quarter. Spontaneous,
in-the-moment feedback also reads as sincere.

Managers and leaders should consider how the recognition provided in their organization is perceived. Is it
given impersonally or unceremoniously as a matter of routine or obligation, or is it bestowed in a way that is
personalized and genuine? Optics matters but so does sentiment — and employees can tell the difference.

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3.  Equitable
Although recognition should be targeted and personal, how much others receive matters. When employees see
recognition that is out of balance — particularly when they feel they are being shorted — it triggers an alarm to
their basic need for fairness and damages their overall employee experience.

Overall, only 26% of employees strongly agree they receive similar amounts of recognition as other team
members at their company with similar performance levels. Deeper analysis shows clear patterns in who is
— and is not — receiving recognition, with significant implications about the state of diversity and inclusion in
workplaces.

As shown in the following table, Black and Hispanic employees are less likely to report equitable recognition
than White employees. Only 19% of Black employees and 21% of Hispanic employees strongly agree they receive
a similar amount of recognition as other team members, compared to 28% of White employees. They are also
less likely to strongly agree the recognition they get is authentic. Black employees, in particular, are less likely to
strongly agree they get the right amount of recognition.

Percentage of employees who strongly agree recognition is authentic, equitable and that they receive the
right amount, by racial identity group

Black Hispanic White

Overall
employees employees employees
I get the right amount of
23 17 21 24
recognition

The recognition I get is authentic 32 25 26 35

Recognition is equitable 26 19 21 28

Recognition can reflect inclusivity at an organization, or reveal underlying attitudes and biases with serious
downstream repercussions. Just as importantly, where recognition is bestowed illustrates what — and who
— an organization values. Acknowledging achievements can have a considerable bearing on reputation and
performance evaluations and ultimately figure into the opportunities available to employees. If recognition
is about giving credit where credit is due, then the general lack of perceived equity in recognition signals a
serious failure.

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4.  Embedded in the Culture

Recognition can be a practice, or it can be the way of life at an organization. The distinction between the two
makes a noticeable difference in the daily experience of employees.

Simply having a recognition program is not enough. A culture of recognition is one in which gratitude, praise and
appreciation are freely given, regularly received and reach all corners of the organization. Where everyone feels
empowered to take part in showing appreciation and commending achievements.

Thirty-six percent of employees report having a recognition program at their organization — nearly twice the
number who strongly agree recognition is fully embedded in their organization’s culture (19%). However, by
embedding recognition into their culture, organizations can more than double the impact of their recognition
initiatives, as shown in the following table.

Employees who strongly agree their organization has a strong culture of recognition also say ...

... their organization has ... % Yes % No Impact

Recognition program 27 13 2x

Monetary recognition 31 17 2x

Asked about their preferences 36 17 2x

% At least a few % Less than a few

... they have ... Impact
times a month times a month
Received recognition from a
26 9 3x
manager, supervisor or leader

Received recognition from peers 24 10 2x

Given recognition 21 10 2x

% Do not strongly
% Strongly agree Impact
agree

Life events are recognized 59 12 5x

Work milestones are recognized 49 9 5x

Teams and groups are recognized 69 5 14x

Recognition needs fulfilled 52 9 6x

Recognition is authentic 44 8 6x

Recognition is equitable 48 10 5x

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Public recognition is also an important culture booster. Percentage of employees who say
Only 11% of those who say recognition is mostly their organization has a strong
a private show strongly agree their organization culture of recognition, by type of
has a strong culture of recognition, compared to recognition received
22% who indicate they receive a mix of private and
public recognition. Those who receive mostly public
recognition are the most likely to report having a solid
culture of recognition (37%).

What does it feel like to work at an

organization with a culture of recognition?
11%
Mostly private
“It makes me feel
valued and that I’m doing
something right, that it is
something. I’m doing things
that are being seen.”

22%
Mix of private and public
“I think overall,
having more of a culture of being
recognized and knowing that people
appreciate your work just in general is
going to make me work harder.”

37%
Mostly public

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5.  Personalized
Just as what constitutes the right amount may vary person-to-person, employees can have different preferences
for how and where they receive recognition. While getting recognition “right” can seem like a moving target, there
is a straightforward way to ensure a bullseye: just ask. However, only 10% of employees strongly agree they have
been asked by someone at their current workplace how they like to be recognized.

Setting can matter. While some employees like being in the spotlight, not everyone does. Twenty-nine percent of
employees say they prefer to receive recognition in private, while only 7% prefer it to be public. The balance, 64%,
prefer a mix of public and private recognition.

Technology-mediated recognition can strike a balance by "packing the punch" of public recognition while being
more comfortable for employees who like a low profile. For example, mentioning exemplary work in an email
chain, expressing appreciation on an online platform or forwarding kind comments to someone’s superiors are all
forms of public recognition, but they feel different to employees.

Employees also differ in how much they value a monetary component to recognition. Some describe monetary
rewards as the ideal recognition, but it can make less of a mark for other employees. Organizations that provide a
variety of outlets for recognition offer the flexibility to personalize it and ensure it creates the intended impact.

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Investing in Recognition
Recognition drives impact across a multitude of dimensions related to employee productivity, retention and
brand‑building and can even reduce turnover costs. Yet, many organizations are not fully investing in recognition
or truly integrating it into their culture — or adequately budgeting for it. Any of these factors can prevent
organizations, and employees, from realizing the benefits of workplace recognition.

Many managers and leaders report that recognition is not valued or seen as a priority at their organization. In
fact, 81% of leaders say recognition is not a major strategic priority for their organization. Leaders give similar
accounts that lend support to this finding, stating: Leaders and managers are not recognized themselves, they
are not provided with the necessary resources (financial and otherwise) for recognizing their people, and their
organization does not readily provide outlets, programs or systems for conferring recognition.

Not investing enough time in recognition

“There’s no structured time
is just as problematic — if not more
for my team to be able to use these tools
so — than underfunding it. Managers
and benefit from it. When they can barely
report implementation challenges
keep up with expectation of metrics each day,
as a barrier to realizing the impacts
it’s like that’s the last thing on their list and it’s
of recognition.
going to continuously keep being put off.”

Recognition is critical to the employee experience

and those living it, including leaders. Whether or not it is
seen as a priority overall may have implications for leaders' own
attitudes and prioritization of recognition. It can impact how they lead, the guidance they provide and
even their day-to-day behavior, thereby setting the tone throughout an organization.

Despite existing research showing that recognition can improve business outcomes,12 almost half of senior
leaders (46%) do not know what percent of their payroll budget is allocated to recognition, and more than one in
10 do not know if their organization has an allocated budget for it. But not knowing is not the biggest problem:
Nearly two-thirds of leaders (64%) say there is no budget allocated specifically to recognition.

Additionally, organizations frequently fail to set themselves up to get the most out of recognition. Seventy-three
percent of leaders say their organization does not provide any best-practice training for employee recognition. An
additional 83% say their organization does not pay an outside company, vendor or consulting group to help with
or advise on it. This lack of support leaves most leaders and managers with little to no guidance on how to make
recognition count. Considering that organizations can leverage its power
for free if they do it well, this is a missed opportunity.
“It’s something I don’t
When organizations invest in recognition, it sends think employees recognize
a message to employees about what they value. from that aspect in the business;
they are literally investing in us to be
12 The Society for Human Resource Management & Workhuman. (2018). able to recognize each other and it
Designing work cultures for the human era: The 2018 SHRM/Workhuman
employee recognition report. https://www.workhuman.com/resources/ just ties into the culture of the
reports-guides/findings-from-the-2018-shrm-workhuman-employee-
recognition-survey-designing-work-cultures-for-the-human-era company I work for.”

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Driving Impact Through Recognition

Recognition brings the "human" element back to work by setting the tone for the entire employee experience.
When organizations get recognition right, employees are more committed, more engaged and connected to their
workplace culture, have stronger working relationships
and feel a sense of belonging at their organization.

Employees who are emotionally fulfilled “Awarding people for good

through appreciation and acknowledgment work is crucial in any business at any
are more likely to stay with their
time, because that falls down and cascades into
organization. They feel a sense of loyalty
and act as brand ambassadors by sharing people’s personal lives … and it cascades into a
their positive experiences with others business, it cascades through so many different
to build their company’s reputation and things. The old adage of ripples in the pond.”
extend its reach. Recognition can also shield
employees from burnout and support their
overall wellbeing.

Committed Engaged
and Retained and Growing

Cared for Connected

and Supported and Included

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Committed and Retained

Many leaders do not think about recognition as part of “I will say that
their retention strategy but should. Employees who report when I feel less appreciated
low‑quality or infrequent recognition are at a high risk for or less recognized, that’s when
turnover. As shown below, when employees do not strongly
the job searches start.”
agree that recognition is fulfilling, authentic, equitable or
embedded in the culture, they are twice as likely to be looking or
watching for a new job. They are also roughly two or more times as
likely to say they do not plan to be employed at the same organization in
one year.

Among employees who are actively looking or watching for job opportunities …

% Do not strongly
% Strongly agree Impact
agree

Recognition needs fulfilled 23 51 2x

Recognition is authentic 27 53 2x

Recognition is equitable 28 52 2x

Recognition is embedded
29 47 2x
in culture

Among employees who do not plan to be at their organization in one year …

% Do not strongly
% Strongly agree Impact
agree

Recognition needs fulfilled 8 20 3x

Recognition is authentic 9 21 2x

Recognition is equitable 11 19 2x

Recognition is embedded
8 19 2x
in culture

As many organizations are experiencing first-hand, the effects of attrition can permeate throughout an
organization. Even when it does not directly affect the overall productivity or output, it still costs the organization
in terms of replacement expenses and damage to the culture.

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Focusing on recognition experiences can address both consequences simultaneously. Recognition helps to
reduce turnover costs in two ways. First, recognition is critical in engaging employees — a profound insulator for
preventing attrition.13 But recognition has unique protective effects beyond engagement that provide additional
savings. In fact, a 10,000-person organization with an already engaged workforce can save up to $16.1 million
annually by making recognition an important part of its culture.14 That same culture of recognition can preserve a
positive employee experience even amid disruptions by keeping employees connected and engaged.

Cost benefits of a culture of recognition

Company size Turnover cost — % of salary Engaged + Embedded culture

1,000 50% $403,797

1,000 200% $1,615,189

10,000 50% $4,037,973

10,000 200% $16,151,892

Recognition Creates Staying Power

When employees feel like their organization is invested in them, they are more invested in their organization.
Employees who have good recognition experiences are three times more likely to strongly agree they feel a sense
of loyalty to their organization.

Among employees who strongly agree they feel loyal to their organization …

% Do not strongly
% Strongly agree Impact
agree

Recognition needs fulfilled 77 23 3x

Recognition is authentic 72 18 4x

Recognition is equitable 71 22 3x

Recognition is embedded
74 27 3x
in culture

13 Harter, J., & Mann, A. (2017, April 12). The right culture: Not just about employee satisfaction. Gallup.com. https://www.gallup.com/workplace/231602/right-
culture-not-employee-satisfaction.aspx
14 Gallup’s algorithm uses longitudinal data from nationally representative samples to estimate actual turnover rates based on respondents’ turnover intentions
(actively looking for a job, watching for opportunities or not looking) and employee engagement. Output is “dollarized” by incorporating known data on
turnover costs; the model is estimated separately for low turnover cost rates (50% of salary) and high turnover cost rates (200% of salary). Based on this
algorithm, the reduction in turnover costs can be calculated as a function of other attributes. In this model, responses to “Recognition is an important part of
my organization’s culture” are included, and an additional cost savings above and beyond employee engagement, is identified as shown.

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Perhaps more importantly, they plan to stay put. Employees whose organizations get recognition right are far
more likely to report that they are not looking for another job.

Among employees who are not looking for another job …

 % Strongly agree   % Do not strongly agree

Life events are recognized 20 53 73

Work milestones are recognized 16 52 68

Teams and groups are recognized 21 51 72

Recognition needs fulfilled 28 49 77

Recognition is authentic 26 47 73

Recognition is equitable 24 48 72

Recognition is embedded in culture 18 53 71

These employees are also much more likely to stay long term. Overall, only about half of employees (51%) plan to
be employed at their current job five years from now. The following figure illustrates how organizations can boost
staying power by providing the validation and acknowledgment employees are looking for at work.

Among employees who plan to be at their organization in five years …

 % Strongly agree   % Do not strongly agree

Life events are recognized 18 48 66

Work milestones are recognized 15 48 63

Teams and groups are recognized 14 48 62

Recognition needs fulfilled 22 46 68

Recognition is authentic 20 45 65

Recognition is equitable 15 48 63

Recognition is embedded in culture 14 49 63

Employees who are recognized see a future at

“This is actually one
their organization.
of the reasons why I haven’t really
been looking for work is because my
management has been so positive and
regard to recognition of my work.”

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An Organization’s Best Advocates

Recognition is a two-way street. When organizations make a point of celebrating employees’ successes and
contributions, those employees pay it forward. They become brand ambassadors who help spread the word about
products, services and their workplace. In other words, when organizations appreciate employees for the value
they add, they add more value by attracting customers and future employees to the organization.

Among employees who strongly agree they would recommend their organization’s products or services …

% Do not strongly
% Strongly agree Impact
agree

Recognition needs fulfilled 83 30 3x

Recognition is authentic 76 26 3x

Recognition is equitable 77 28 3x

Recognition is embedded
78 33 2x
in culture

In a competitive talent marketplace, the power of the employee referral cannot be understated. Yet, only 28% of
employees strongly agree they would recommend their organization as a great place to work. But organizations
that acknowledge employees through strong cultures of recognition can boost this figure to 68% (see table
below). In short, when employees work in a positive environment, they tell their friends and families.

Among employees who strongly agree they would recommend their organization as a great place to work …

% Do not strongly
% Strongly agree Impact
agree

Recognition needs fulfilled 69 16 4x

Recognition is authentic 63 12 5x

Recognition is equitable 63 15 4x

Recognition is embedded
68 19 4x
in culture

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Engaged and Growing

“People who feel
Employee engagement is the critical foundation for recognized work harder
high-performing teams and organizations,15 and recognition is one
and feel better about the
of its most vital scaffolds.
work that they do.”

Percentage engaged among employees who …

Do not strongly
Strongly agree Impact
agree

Recognition needs fulfilled 80 21 4x

Recognition is authentic 71 18 4x

Recognition is equitable 72 21 3x

Recognition is embedded
71 25 3x
in culture

Managers and supervisors play a critical role in engaging employees.16 Employees who receive recognition from
their manager, supervisor or other leaders at least a few times a month are more than three times as likely to be
engaged than those who receive it less often.

However, managers can lose the full force of recognition by failing to personalize it. Fifty-one percent of
employees who report being asked about their preferences are engaged, versus only 31% of those who were not
— a 20-point difference in engagement.

Growing Employees Through Recognition

Recognition is an effective multitool for learning and development. At every phase of the employee life cycle,
recognition can function as a learning aid, validating good work and good behavior. It helps employees aim their
contributions through positive reinforcement.

Recognition is critical to onboarding new employees into the work and culture of an organization, helps
employees be their best throughout the employee life cycle and provides vital support for continued growth.
Recognition helps employees feel like they are being encouraged to develop.

15 Harter, J. K., Schmidt, F. L., Agrawal, S., Blue, A., Plowman, S. K., Josh, P., & Asplund, J. (2020). The relationship between engagement at work and organization
outcomes: 2020 Q12 meta-analysis: 10th edition. Gallup, Inc.
16 Clifton, J., & Harter, J. K. (2019). It’s the manager: Gallup finds the quality of managers and team leaders is the single biggest factor in your organization’s long-
term success. Gallup Press.

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Among employees who strongly agree someone at work encourages their development …

% Do not strongly
% Strongly agree Impact
agree

Recognition needs fulfilled 72 18 4x

Recognition is authentic 65 15 4x

Recognition is equitable 66 19 3x

Recognition is embedded
66 21 3x
in culture

When employees receive recognition, they are also more confident in their path forward. While only 18% of
employees overall strongly agree they can see a path to grow at their organization, recognition can more than
double that rate. Seeing a path to grow engages and inspires employees to rise to their full potential.

Among employees who strongly agree they see a path to grow at their organization …

% Do not strongly
% Strongly agree Impact
agree

Recognition needs fulfilled 46 10 5x

Recognition is authentic 41 8 5x

Recognition is equitable 42 10 4x

Recognition is embedded
47 12 4x
in culture

Public recognition can clear a path for development; it builds employees’ reputations and opens doors. As the
figure below shows, employees who receive mostly public recognition are more than twice as likely to report
seeing a path to develop than those who receive mostly private recognition.

Percentage of employees who strongly agree they see a path to grow

at their organization, by type of recognition received

27
21
11

Mostly public Mix of public and private Mostly private

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Connected and Included

Keeping employees connected to their organization’s culture has been a common concern amid the new era of
remote and hybrid work. Recognition is a simple and effective part of the solution.

As a culture-building tactic, recognition creates a consistent source of positive regard that allows employees
to participate in the culture and benefit from it, regardless of their working arrangement. When employees
— whether remote, hybrid or on-site — get the right amount of recognition, they feel more connected to their
organization’s culture.

Agreement with "I feel connected to my organization's culture," by remote work status
Among employees who feel they are getting the "right amount" of recognition

Work location % Strongly agree % Do not strongly agree Impact

Remote 58 18 3x

Hybrid 66 18 4x

On-site 66 11 6x

Overall, only one in four employees strongly agree they feel connected to their organization’s culture. A
high-quality recognition experience will help employees feel like they are not just experiencing the culture but are
an integral part of it.

Among employees who strongly agree they feel connected to their organization’s culture …

% Strongly agree % Do not strongly agree Impact

Recognition needs
64 14 5x
fulfilled

Recognition is
58 10 6x
authentic

Recognition is
59 12 5x
equitable

Recognition
is embedded 62 17 4x
in culture

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Recognition in a remote world, according to

“Especially because we
those living in it:
work remotely now, so a lot of the
personal aspects of work life are gone
Employees need to feel connected to their
organization’s culture, but it is just as important for … just giving a shout out and recognizing
them to feel connected to their organization’s people. someone’s job well done is something
Giving and receiving recognition is one way to form new
that’s needed in the workplace.”
relationships, build bridges among teams and dissolve
tensions amid disparate goals, priorities or approaches.

Only about a quarter of employees (27%) strongly agree they have

meaningful connections with their coworkers, but those who receive recognition from peers at least
a few times a month are twice as likely to strongly agree than those who receive it less often. When that
recognition is high-quality, the impacts are even greater.

Among employees who strongly agree they have meaningful connections with coworkers …

% Do not strongly
% Strongly agree Impact
agree

Recognition needs fulfilled 60 17 4x

Recognition is authentic 54 14 4x

Recognition is equitable 59 16 4x

Recognition is embedded
58 20 3x
in culture

These meaningful connections matter. An atmosphere of mutual respect, support and encouragement can
pave the way for better teamwork and a better work environment for all that is characterized by inclusion. When
employees show appreciation at work, they create strong and productive partnerships and an environment where
everyone feels like they matter and belong.

Among employees who strongly agree they feel that they belong at their organization …

% Do not strongly
% Strongly agree Impact
agree

Recognition needs fulfilled 74 18 4x

Recognition is authentic 68 14 5x

Recognition is equitable 68 17 4x

Recognition is embedded
66 23 3x
in culture

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Boosting Belonging for All

While high-quality recognition improves feelings of belonging for all employees, it may be even more impactful for
Black and Hispanic employees. As organizations create initiatives to improve their diversity, equity and inclusion
(DEI), they should be mindful to include a fulfilling, authentic and equitable recognition program in their strategy.

Public recognition can be particularly effective in strengthening belonging. Public displays reinforce employees’
place and value in the organization, and others see that.

Impact of belonging to their organization, by racial identity group

Black employees Hispanic employees White employees

Recognition needs fulfilled 5x 6x 4x

Recognition is authentic 7x 7x 4x

Recognition is equitable 4x 5x 4x

Percentage who strongly agree they feel that they belong at their
organization, by type of recognition received
40
34
24

Mostly public Mix of public and private Mostly private

Making recognition personal can also amplify a sense of belonging. Employees who say their organization
recognizes life events are nearly three times more likely to strongly agree they belong at their organization. When
employees feel valued for their achievements and for who they are, they feel like they are more than an employee;
they are an important member of an organization.

Building inclusion through recognition:

“I think it
brings our team closer
and it fosters a sense of
community.”

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Cared for and Supported Percentage “always” or “very often” burned

out at work, by organizations where …
In today's workplace, being “overworked and underappreciated”
is a common experience. It is also a recipe for burnout. Overall,
25% of employees report being burned out at work “very often”
Work milestones
are recognized
13
or “always,” indicating that for a quarter of the workforce, energy,
motivation and productivity are dwindling.

Feeling undervalued is a drain on the employee experience and Life events are
recognized
12
a major risk factor for burnout. Those who do not get consistent
recognition at least a few times a month are nearly twice as likely
to report being burned out always or very often. Leaving recognition Recognition is
needs unmet nearly quadruples burnout rates. Conversely, as embedded in 12
culture culture
the chart to the right shows, providing consistent, high-quality
recognition can cut the rates of burnout in half or better.

Leaders today must also be mindful of the “human” in “human

Recognition is
equitable
11
capital” and that having a resilient organization starts with
building resilience in people. The best way organizations can help
reinforce the fortitude of their employees is by supporting their Recognition is
authentic
10
health and wellbeing proactively, intentionally and holistically.

Recognition is an effective way for organizations to demonstrate

25%
that they care about wellbeing. Employees who receive Recognition
needs fulfilled
8 Employees
Overall
recognition from their peers at least a few times a month are
nearly two times as likely to strongly agree their organization
cares about their overall wellbeing, and those who receive
0% 5% 10% 15% 20% 25% 30%
recognition from their manager, supervisor or a leader at that
frequency are nearly three times as likely.

Making a point of recognizing events in the personal lives of their employees is an easy way to send a powerful
message that organizations care about their employees as people. Recognizing life events more than triples
employees’ perceptions that their organization cares.

Among employees who strongly agree their organization cares about their wellbeing …

% Do not strongly
% Strongly agree Impact
agree

Life events are recognized 68 20 3x

Recognition needs fulfilled 71 14 5x

Recognition is authentic 63 11 6x

Recognition is equitable 63 13 5x

Embedded in culture 68 18 4x

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Recognition is about people, not just employees.

As shown below, employees who have good recognition “You feel like it was
experiences at work evaluate their lives more
positively overall and are more likely to be thriving
worth it working for them. You
in their everyday lives.17 Organizations can help mattered to them, not just as an employee,
improve employees’ lives by acknowledging their but as a person … that’s an amazing feeling,
value as people and contributors.
because I know that there are a lot of
employees who don’t get there.”
Among employees who are “thriving” in their
overall wellbeing …
 % Strongly agree   % Do not strongly agree

Life events are recognized 19 53 72

Work milestones are recognized 20 52 72

Teams and groups are recognized 19 52 71

Recognition needs fulfilled 23 51 74

Recognition is authentic 24 49 73

Recognition is equitable 22 51 73

Recognition is embedded in culture 18 53 71

17 Gallup, Inc. (2009, August 24). Understanding how Gallup uses the Cantril scale. https://news.gallup.com/poll/122453/understanding-gallup-uses-
cantril-scale.aspx

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Conclusion
When it comes to recognition, there’s great promise, but there is also room for improvement. Most employees are
not getting what they need from recognition because their organizations are missing the mark.

Bringing the human element back to work through recognition requires investing in it and aiming it. Organizations
can maximize their recognition efforts by targeting the five pillars of recognition: (1) fulfilling employees’ needs
for recognition, (2) giving high-quality, authentic recognition, (3) ensuring equity, (4) embedding recognition in
their culture, and (5) personalizing it.

Recognition improves business outcomes by improving the employee experience. But recognition only works
when done right. Organizations that leverage the full force of recognition don’t just “do” recognition, they live it,
every day.

By meeting their employees’ recognition needs, organizations can reap the benefits of a more engaged workforce
that is connected and empowered to grow and develop. Their employees are more likely to be thriving at work
and beyond, are committed to staying and actively promote the organization to others. Overall, they are better
employees and feel better as people.

Leaders' Five Next Steps

Leaders can unleash the human element at work by taking five steps to build a better recognition strategy.

Make recognition accessible. The easier it is for managers and employees to give recognition, the more they will
do it. Make sure there are easy outlets to give all types of recognition and that managers are equipped with the
resources they need — both in time and money — to make recognition count.

Make recognition an important part of the culture. Take recognition from a practice to a core value by
embedding recognition in the culture. Make recognition a ritual: Make it a daily habit but also set aside designated
times and events to highlight it and make it special.

Train managers. Managers are an important conduit of recognition for employees. Set the expectation of
providing recognition regularly, but also teach managers how to do it well. Educate them on the impacts of
recognition and options for providing it in the workplace. Guide them with specific actions to motivate employees
and build strong teams through positive feedback.

Model the behavior. Leaders must set the example by providing recognition themselves. Recognize managers
— they often receive the least recognition. Send recognition all the way down the chain to front-line employees;
leaders' gratitude and acknowledgment can make all the difference in their experience at work. Let employees
know that what they do is important.

Prioritize recognition. Give the recognition strategy the attention it warrants. Set aside the time, money and
energy needed to get it right. Audit the organization's current state of recognition — is it having the impact it
should? What could take it further? Make smart investments and set them up for success by thinking through
implementation thoughtfully and making them integral to the culture.

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Methodology
Survey Methodology. Results from U.S. data are based on a survey conducted from Feb. 14-28, 2022, with 7,636
adults who are employed full-time or part-time, aged 18 and older, and living in all 50 U.S. states and the District
of Columbia, as a part of the Gallup Panel™. For results based on these samples of national employed adults,
the margin of sampling error at the 95% confidence level is +1.8 percentage points for response percentages
around 50% and is +1.1 percentage points for response percentages around 10% or 90%, design effect included.
For reported subgroups such as managers or senior leaders, gender or race/ethnicity, the margin of error will be
larger, typically ranging from ±2.1 to ±6.1 percentage points for percentages around 50% and ±1.3 to ± 3.7 for
percentages around 10% or 90%.

Results from Western Europe are based on self-administered web surveys from an opt-in sample provided by
Dynata of 5,551 adults, aged 18 and older, living in one of the following countries or regions: United Kingdom,
France, Germany, Netherlands, Ireland, Switzerland, Belgium, Denmark, Finland, Norway and Sweden. The survey
was conducted from Feb. 18-28, 2022. Results from this sample are unweighted, and respondents are not
demographically representative of the countries surveyed. For details about how Dynata recruits respondents in
Western Europe, please see http://info.dynata.com/rs/105-ZDT-791/images/Dynata_Panel%20Book_2.19.pdf.

Gallup’s turnover cost model is based on a median employee salary of $54,000 annually (Bureau of Labor
Statistics, March 2022), a voluntary turnover rate of 32.7% (Bureau of Labor Statistics, 2021) and an estimated
turnover cost ranging from 50% to 200% of an employee’s annual salary. The turnover cost estimates in this report
represent the potential cost reduction in turnover expenses attributable to strong agreement with "Recognition
is an important part of my organization's culture," after accounting for effects of employee engagement.
Organizations with higher or lower median salaries, turnover rates and turnover cost ranges may experience a
higher or lower cost reduction.

In-Depth Interviews. Qualitative insights and quotes in this report are derived from 30 in-depth interviews
conducted with members of the Gallup Panel. All respondents were adults working in the United States. Random
samples were selected for recruitment of 10 individual contributors, 10 managers and 10 leaders from a variety of
professions and industries. Respondents’ ages ranged from 24 to 66 years of age (average age = 41 years), and
50% were female. The respondents came from a mix of racial and ethnic backgrounds, with 43% identifying as
White, 37% identifying as Black and 17% identifying as Hispanic or Latino.

Interviews were conducted by trained Gallup research consultants in a semi-structured format. Interviews were
recorded with the consent of respondents and transcribed using Zoom transcription. Qualitative analysis was
conducted by an experienced Gallup research associate who identified key themes and patterns across the
interviews. Analyses were also focused on identifying unique experiences by role, demographic characteristics
and working arrangements.

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Appendix: Cross-National Comparisons

Recognition is core to the human experience regardless of location, but not always in the same way. A
comparison between recognition experiences in the United States and several countries in Western Europe18
indicates that recognition is important to the employee experience and organizational outcomes, but there are
differences in how types of recognition are given, received and perceived.

Key differences in recognition experiences as reported in the United States versus Western Europe are shown below.

% Strongly agree (or have) U.S. Western Europe Δ (Percentage points)

Recognition program 36% 30% 6

Digital recognition software 22% 24% -2

Bonus 33% 40% -7

Asked about their preferences 10% 28% -18

Monetary recognition 21% 42% -21

At least a few Less than a few

Δ (Percentage points)
times a month times a month

Received from manager,

49% 58% -9
supervisor or leader

Received from peers 53% 68% -15

Giving recognition 71% 78% -7

Strongly agree Do not strongly agree Δ (Percentage points)

Life events are recognized 15% 17% -2

Work milestones are recognized 23% 21% 2

Teams and groups are recognized 22% 21% 1

Recognition needs fulfilled 23% 20% 3

Recognition is authentic 32% 25% 7

Recognition is equitable 26% 24% 2

Recognition is embedded
19% 19% 0
in culture

18 Please note that U.S. data reflect responses from a representative, stratified random sample recruited from the Gallup Panel, whereas European data reflect
responses from an opt-in sample provider. See the Methodology section for more details.

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% Have U.S. Western Europe Δ (Percentage points)

Public 11% 21% -10

Private 30% 46% -16

Mix of public and private 58% 33% 15

Preferences

U.S. Western Europe Δ (Percentage points)

Want recognition at least a few

times a month from manager/ 59% 70% -11
supervisor or leader

Want recognition at least a few

57% 73% -16
times a month from peers

Prefer public recognition 7% 20% -13

Prefer private recognition 29% 40% -11

Prefer mix of public and private 64% 40% 24

Prioritization

U.S. Western Europe Δ (Percentage points)

Major strategic priority 19% 51% -32

Minor strategic priority 47% 33% 14

Not a priority 34% 16% 18

Managers and/or leaders trained

18% 55% -37
in best practices

Budget allocated 25% 55% -30

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Unleashing the Human Element at Work | Transforming Workplaces Through Recognition

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