Myth versus reality: how is reward really landing with employees?

Reality: Strategies aren’t having the impact the way employers think

It makes sense that employers believe their reward and recognition strategies are working well, with many spending a lot of time and budget investing into programmes. That confidence translates to 34% rating their strategy as highly effective, and a further 29% saying it’s effective but could be improved. 

When it comes to how their strategy makes employees feel, 75% say reward and recognition feels meaningful rather than a formality, and the same proportion think that their strategy makes employees feel valued.

But employees disagree, with only 58% saying that reward and recognition feel meaningful, and even fewer agreeing that it makes them feel valued (53%). There’s often a real disconnect between the intent and the impact of reward and recognition strategy.

Reality: Recognition is the exception, not the norm

Regular recognition is what transforms one-off gestures into a genuine culture of celebration. Employers broadly believe that it’s happening, with 75% saying recognition is regular in their organisation.

In reality, only 37% employees say they received recognition in the last month, and one in four say they’re rarely recognised for their work.

When recognition is absent, you don’t just lose motivation and performance. As Tracey Paxton, Clinical Director at Perkbox, puts it: “You create ambiguity about what good looks like, and that can create issues around trust.”

Reality: Many employees believe it comes down to personal relationships, not performance

Generally, employers believe reward decisions are clearly understood by their teams. But despite 64% of employers believing that to be the case, only 39% of employees actually do. Even fewer (25%) would describe their employer’s reward and recognition programme as clearly structured and defined.

Perhaps most concerning, 23% of employees believe rewards are based on personal relationships rather than contribution. As Tracey says, “if employees don’t understand how decisions are made, they are going to feel it is inconsistent… Once doubt creeps in, it’s hard to rebuild trust.”

This goes beyond a communication problem to a trust problem.

Most employers genuinely want to get reward and recognition right. But that intent doesn’t always translate into day-to-day experiences. The gaps highlighted here can quietly erode the trust, motivation and belonging that reward and recognition strategies are aiming to build.

Find out what’s driving the gap and our recommendations for building value in the Science of Reward at Work report.