Rethinking employee recognition: The secret to retaining and engaging Aussie workers

Why today’s recognition methods fall flat

The problem isn’t that companies don’t care — it’s that many are relying on outdated or inconsistent systems. Here’s why traditional approaches are missing the mark: 

• They’re too infrequent. Annual reviews or occasional awards don’t meet employees’ need for regular feedback. 

• They lack meaning. Generic messages feel hollow. Employees want personalised, sincere recognition. 

• They’re top-down. When only managers give recognition, it limits visibility and excludes peer feedback. 

• They’re disconnected from values. Recognition that isn’t tied to company purpose or culture feels transactional. 

Modern employees want recognition that reflects who they are, how they work, and what they value. In short, it needs to feel real. 

The business case for meaningful recognition

Recognition drives business results, proving its value beyond a feel-good initiative. Organisations that prioritise recognition see: 

• Boost in workplace culture 

• Increase in productivity 

• Boost in employee morale 

• More engaged employees 

• Better talent retention  

• Positive impacts on teamwork 

• Better sense of purpose within the team 

It’s also a major differentiator in employer branding. In PwC’s Future of Work survey, 65% of employees said they would choose to stay longer at a company that shows appreciation for their work, even if a higher-paying offer came along. 

When you create a culture of appreciation, you don’t just retain employees — you energise them. 

What meaningful recognition looks like

If you want your recognition efforts to make an impact, they need to tick three critical boxes: 

1. Timely and specific

Don’t wait until the end of the quarter or annual review. Recognition should happen as close as possible to the event it acknowledges. It should also be detailed: 

• "Thanks for your help" becomes "Thanks for stepping up in yesterday’s client call — your calm responses really helped us win them over." 

2. Personal and values-aligned

People want to be seen as individuals. Tailor your message and rewards to what they value most — whether it’s public praise, a handwritten note, or a team lunch. And link it to company values: 

• "Your collaboration on the project really brought our ‘One Team’ value to life." 

3. Inclusive and peer-driven

Recognition should flow in all directions, not just top-down. Encourage peer-to-peer shoutouts, cross-functional praise, and digital platforms that make it easy for everyone to participate. 

Peer-driven recognition creates stronger team bonds and highlights contributions managers might miss. 

Building a recognition strategy that sticks

To make recognition a sustainable part of your culture, it needs structure, leadership buy-in, and the right tools. 

Here’s how to get started: 

• Define your goals. What behaviours do you want to reinforce? Tie recognition to these. 

• Choose a system. Use platforms like Perkbox, Bonusly, or internal Slack channels to streamline recognition. 

• Train your leaders. Recognition must be modelled from the top. Help managers understand how and when to acknowledge team efforts. 

• Celebrate consistently. Embed recognition into team meetings, internal comms, and performance reviews. 

According to LinkedIn’s Workplace Learning Report, companies that prioritise continuous learning and recognition together see the highest retention. 

Recognition is retention

With nearly two-thirds of Aussie employees considering leaving, recognition couldn’t be more crucial. 

But it has to be thoughtful, personal, and aligned with what really matters to your people. When done right, recognition transforms company culture, deepens engagement, and boosts retention. 

Employees don’t just want to be paid. They want to be seen. 

Download the full report

Want more insight into what Australian workers really value in 2025? 

👉 Download the full Beyond the Paycheck 2025 report and get the data, strategies, and tools to build a culture your people won’t want to leave.