The Perkonomics Report:
The Challenge Of Employee Value
What it really means to feel valued at work – and why it matters now more than ever
Shifting expectations, the impact of emerging technologies like AI, employee/employer misalignments, and a restless workforce. Our latest research uncovers how UK employees truly feel about value – and why recognition, benefits, and belonging may be the keys to retention and performance.

Employee value in 2025
Our research with 4,000 employees and 1,000 employers reveals a restless, undervalued workforce. While some feel recognised and supported, 42% of employees report feeling undervalued – and the data show that this directly undermines motivation, morale, and retention.
Overall, the risks are clear: over half of undervalued employees say they’re likely to seek new roles in the next year, with employers themselves echoing this concern. Yet the findings also highlight a path forward. Recognition and benefits consistently emerge as powerful drivers of value – boosting motivation, performance, and retention when used effectively.

Report deep dive
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The value rating
We asked employees across the UK to rate how valued they feel at work on a scale of 1–10. We then asked employers to estimate how they believe their people might respond.
Employers gave an average score of 7.40 – yet employees reported just 6.75, revealing a clear perception gap.
Looking closer, the data tells an even more complex story, with striking differences across sectors, genders, and company sizes.
- Private sector workers rated their value at 6.92, while public sector workers came in under average at 6.40
- Males gave an above average value rating of 7.08, while females reported a value rating of 6.50
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Why employee value matters
42% of UK employees have felt undervalued in their current role – even more worryingly, over half (60%) said that feeling undervalued had contributed to adverse mental health, stress, or self-esteem issues. The impact on the employee – and the business – are profound:
- 57% of employees reported that feeling undervalued had a negative impact on motivation
- Nearly two-thirds (64%) of employers believe that productivity is affected if staff feel undervalued
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Exploring the impact of AI on employee value
AI has quickly embedded itself into daily working life. But while employers often see these shifts as progress, the impact on employees’ sense of value and recognition tells a much more complicated story.
- 69% of employers are confident AI is improving employee experience, yet only 38% of employees say it makes them feel more valued.
- The same proportion – 38% – report that AI reduces their sense of personal accomplishment.
The value rating
We asked employees across the UK to rate how valued they feel at work on a scale of 1–10. We then asked employers to estimate how they believe their people might respond.
Employers gave an average score of 7.40 – yet employees reported just 6.75, revealing a clear perception gap.
Looking closer, the data tells an even more complex story, with striking differences across sectors, genders, and company sizes.
- Private sector workers rated their value at 6.92, while public sector workers came in under average at 6.40
- Males gave an above average value rating of 7.08, while females reported a value rating of 6.50

Why employee value matters
42% of UK employees have felt undervalued in their current role – even more worryingly, over half (60%) said that feeling undervalued had contributed to adverse mental health, stress, or self-esteem issues. The impact on the employee – and the business – are profound:
- 57% of employees reported that feeling undervalued had a negative impact on motivation
- Nearly two-thirds (64%) of employers believe that productivity is affected if staff feel undervalued

Exploring the impact of AI on employee value
AI has quickly embedded itself into daily working life. But while employers often see these shifts as progress, the impact on employees’ sense of value and recognition tells a much more complicated story.
- 69% of employers are confident AI is improving employee experience, yet only 38% of employees say it makes them feel more valued.
- The same proportion – 38% – report that AI reduces their sense of personal accomplishment.

The looming
‘Value Exodus’
A retention crisis is on the horizon. Our research shows that 34% of employees are likely to seek new roles in 2026 – evidence of a restless and unsettled workforce. The risk is even more pronounced among those who feel undervalued.
54% of undervalued employees are likely to seek new employment in 2026 – with nearly a quarter “very likely” to leave. While 53% of employers believe undervalued employees are likely to leave in the next 12 months.

What does Perkbox do?
Employment benefits packages that lift up your people.
Care for, connect with, and celebrate your team with an employment benefits package that offers powerful tools employees love.
- Everyday savings at top brands
- Practical benefits made for real life
- Wellbeing support for all lifestyles and life stages
- Recognition that boosts morale and engagement
