Undervaluation’s not-so-subtle side effects

When we asked employees what makes them feel valued, their answers didn’t exactly come out of left field. Recognition topped the list at 53%, purpose followed at 36%, and personal wellbeing came in a close third at 33%. That trio forms the backbone of feeling valued – day to day and in the grand scheme of things.

When those “fulfilment markers” aren’t being met, people don’t feel as motivated, they don’t stay as engaged, and they don’t care as much as they used to. It’s like being a tap-dancing street performer while everyone walks past with their eyes on their phones; unless someone – anyone – stops to clap, you eventually stop putting your heart into it. 

But there’s a lot more to it than that. Sixty percent of employees told us that feeling undervalued affects their mental wellbeing, taking a toll on things like stress levels, mental health, or self-esteem.  
And that’s pretty much how the spiral starts: being undervalued impacts your wellbeing, and when you’re not feeling your best, doing your job the way you normally would gets a lot tougher – leaving you feeling even more undervalued. It loops and loops until it’s hard to tell which problem came first.  

Gender disparity adds another layer to this, and not a subtle one. Sixty-five percent of women say undervaluation has affected their mental health, compared with 53% of men. Women are also more likely to report low morale, motivation, and enthusiasm when they feel undervalued – which, given they make up roughly half the workforce, is a blow many organisations can’t absorb.  

When a people problem becomes a business problem

So, we’ve talked through the effects of feeling undervalued on the people powering your business. Now let’s look at what those feelings do to your business itself.

When we asked those undervalued individuals what happens to their performance, almost two in five told us they see a negative impact on how they work. Fifty-seven percent said their motivation wanes, half said their morale does, and 47% said the same for their enthusiasm.

From an employer’s standpoint, nearly two-thirds (64%) believed productivity is affected, 53% said engagement, and 49% reckon it’s harder to retain top talent when that talent doesn’t feel valued.

It seems like, where undervaluation is concerned, employees feel the feelings while employers feel the fallout.

How to bring the value back

We’ve never been the kind to bring up a problem and peace-out, so let’s figure out what to do about all that undervaluation. 

Feeling undervalued doesn’t fix itself, and if you want things to change, your people strategy has to hold the basics – wellbeing, recognition, purpose, and trust – right at its core. 

Let’s break each one down: 

Wellbeing 

People can only stay resilient for so long without support. Giving employees access to proper wellbeing resources means they can get help when they need it, not months down the line when everything’s already got the better of them. 

It’s also the third most desired benefit for employees, which tells you how important it is – and how useful it can be for attracting people as well as keeping them.

But managers need to know how to spot problems early too. A bit of empathy, a simple check-in, or a nudge towards the right support can get things dealt with before they turn into something bigger.  
And people won’t open up unless the culture feels safe. Keeping conversations around mental health going, and keeping them judgement-free, tells people they won’t be punished for being honest. 

Recognition 

If people are doing good work, they need to hear it. Regularly and proudly. A solid recognition programme helps people feel seen for what they contribute and the effort behind it.  

The programme itself needs clear criteria, simple tools for giving recognition, and space for both managers and peers to take part. It should spell out when to recognise people, tie those moments back to your core values, and give examples of the kinds of work, behaviours, and contributions the programme’s designed to recognise. 

If you want to go deeper on this, we’ve already unpacked it in our earlier Perkonomics blog on recognition.

Purpose and trust

Trust is built through the everyday stuff, like letting people get on with their work without hovering over every task, giving them space to try new things, involving them in decisions, or asking for their opinions. Autonomy and flexibility are the signals that you believe in someone.

And this all gets a lot simpler when senior leaders are behind it. Right now, less than half (46%) believe there’s a real link between feeling valued and mental health or wellbeing, which says a lot about the gap we’re still working with. The connection is there – it’s right in front of us, in fact – but if leaders don’t recognise it, the rest of the organisation is left trying to build a culture on shaky foundations.

If you’re ready to start, so are we

If by this point you’re weighing up what needs to change in your organisation (better wellbeing support, more meaningful recognition, a bit more trust in your people…) and you’re looking at the whole thing like Gaudí gazing up at the Sagrada Família thinking, “right… this is going to take a fair bit of effort, isn’t it,” we’ve got you.

We’re here to help you break that pesky cycle and start putting employee value at the heart of how your organisation runs – easily, and all from one simple app.  

And if you want to dig even deeper into what employees are saying about value, you can find it all in our perkonomics report.

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