Perkonomics: The great value exodus and the power of feeling valued

The value gap

Both employees and employers seem to agree that feeling valued matters – which is great to see. But agreement doesn’t always translate into experience, and there’s still a clear disconnect when it comes to how valued people actually feel.

When asked to rate how valued they feel at work, employees gave an average score of 6.75 out of 10. Employers, on the other hand, guessed it would be 7.40. That’s a pretty obvious perception gap – and the more you dig, the bigger the gap gets:   

• Public sector workers: 6.40 vs. 6.92 in the private sector
• Large companies (1,000+ staff): just 6.21, showing how recognition can get diluted at scale
• Male employees: 7.08 compared to 6.50 for female employees

And while 40% say their employer isn’t doing enough to make them feel valued, nearly two-thirds of employers admit that undervaluation is already hurting productivity. 53% believe it’s driving retention issues too.

The cost crunch meets the AI effect

The world we’re living – and working – in right now is making the perception gap even harder to close. The cost-of-living squeeze is putting huge pressure on employees and shaping the choices they can realistically make about their careers. 

Many are staying in jobs they’ve outgrown because they can’t risk moving – which keeps them in the role, sure. But it doesn’t necessarily keep them engaged.

Add AI into the mix, and things get even more complicated. 69% of employers believe AI is improving employee experience, yet only 38% of employees say it makes them feel more valued. Another 38% say it takes away from their sense of personal accomplishment. 

As Pippa Van Praagh, our VP of Operations, explains: 

“The cost-of-living crisis is dramatically affecting how people live and progress in their careers. At the same time, AI is changing the way we work and reshaping what job security looks like. It’s not surprising that many people feel they’ve ‘lost the point’ of working beyond the need for a paycheque. It’s why showing value and recognition to employees has never been more critical.”

If employers don’t put that sense of value into practice, they’ll be left with a workforce that feels both unsettled and undervalued – a risky combo for retention.  

The true value drivers

If you thought the data we gathered was all about giving you the scaries, don’t worry – we’re not that mean. The harshest we get is hiding the good biscuits. Because those 4,000 employees and 1,000 employers also pointed us towards something much more useful: how to close the perception gap and make sure everyone feels valued at work. 

• 53% of employees (and 60% of employers) rank recognition as the #1 factor that makes people feel valued – yet only 30% of workplaces have recognition programmes in place.
• 79% of employees would feel more valued with a tailored benefits package.
• 68% say better benefits would boost productivity, rising to 84% among 25–34-year-olds. 

If we dig into the details, employees are calling for financial wellbeing support (35%), recognition and reward programmes (30%), and health and wellbeing initiatives (29%).

Employers are on the same page – even if a lot admit they don’t quite have the tools to deliver just yet. 

Why it’s time to close the value gap

The thing with undervaluation is that it’s not some abstract concept that lives in theory: it lives in people. And it has a way of draining their energy and passion, lingering on and leaving them with less in the tank to bring to work or life outside it. So it makes sense that 60% of employees who feel undervalued say it’s taken a toll on their mental health or self-esteem.

Put it all together and the link between value, wellbeing, and performance practically glows in neon – and it explains why belonging still matters so much. Most employees want to stay on board. They want to thrive. But they need proof that their organisation truly values them. 

How Perkbox can help

At Perkbox, we’re all about helping organisations close that value gap. Our platform brings together:

• Offers and discounts that help make everyday life more affordable.  
• A flexible reward and recognition programme that fits any budget – helping to create a more motivated workforce. 
• Wellbeing support that helps your employees take care of their mind, body, and money – every day and when it matters most. 
• Practical benefits made for real life – including Home and Electronics   and Car Scheme. 

You can dive deeper into all the findings in The Perkonomics Report: The Challenge of Employee Value. And if you want to see how recognition and tailored benefits can help your people feel genuinely valued, book a demo with us to learn more.