The 2026 Employee Exodus: Why Recognition’s the Key to Retention

Recognition: it’s a ripple effect

So, we know that recognition matters to employees. In fact, it matters more than wellbeing and purpose.

But what about its significance in terms of the bigger picture?

• It creates a sense of community and belonging, which is really important for remote or hybrid workforces, or teams spread across different locations.
• It’s inspirational, with OC Tanner’s 2026 Global Culture Report finding that employees in organisations that embed recognition into their culture are 7x more inspired to innovate at work.
• It makes people more motivated to go that bit further, boosting productivity and leading to stronger business results.
• It improves engagement and retention, helping to reduce turnover and make teams more stable.
• It builds a culture of appreciation where people feel connected, motivated, and proud of their work.

Saying thanks isn’t always simple

Despite how important recognition is, there are plenty of reasons it never quite becomes part of the day-to-day. 

Money’s one of them. It’s tricky to show appreciation when there’s no budget for the small things that make people feel seen. A thank-you goes a long way – but every so often, it helps when there’s something to go with it, like a gift card or a cheeky coffee. 

Then there’s time. Everyone’s short on it, and recognition often gets relegated to those mythical weeks when work’s a little less hectic. Finding something thoughtful for each person only adds to the to-do list, and no one wants to give (or get) rewards that feel half-hearted. 

And of course, consistency. When teams are spread out, it’s easy for recognition to feel patchy. Some people get noticed, others don’t – not because they haven’t earned it, but because there’s no easy way to keep it fair or make it a regular thing. 

Think about it like this: If the office gang gets a pizza party to celebrate a record month but the warehouse team doesn’t even get a slice, that doesn’t exactly scream “we value everyone equally.”

Go genuine or go home

A thoughtful reward can go a long way in making people feel appreciated, but it’s not the only approach – or even the most powerful. Real recognition starts with understanding what matters to your people and building a programme that reflects that.  

The first step is to talk to your team and find out what kind of recognition they’d like to receive. A quick chat or pulse survey will give you a clearer (and more reliable) picture than trying to guess people’s interests from half-heard conversations. After all, ‘bonus’ and ‘bonsai’ sound remarkably similar if you catch it out of context…

From what we’ve seen, and from what our own People team tells us, the most meaningful moments are usually the smallest. It could be a shout-out on a team call or a quick message to say someone smashed it; those little but genuine gestures build connection faster than any one-off reward ever could.

Your no-nonsense checklist for meaningful recognition

Here’s a handy checklist to help you make recognition an everyday thing, no matter where or how your people work:

• Make it consistent
  Find moments to recognise people as you go, like during catch-ups or in a quick message. Once it becomes habit, it starts to shape the culture.
• Make it meaningful
  Tie recognition to the things that matter most. Link it to your values or team goals so people can see how their efforts bring those values to life.
• Make it visible
  That might mean a recognition wall, a shout-out in a meeting, or a mention in a company update. The more people see it happening around them, the more it’ll catch on.
• Make it well-rounded
  Blend top-down and peer-to-peer recognition so it comes from every corner of the business.
• Make it human
  Remember to celebrate life beyond the job. Whether someone’s taking on a personal challenge or making a difference outside work, it deserves a nod.
• Make it seamless
  Use AI to support, not substitute, human connection. Over half of employers say it helps strengthen relationships – a good reminder that tech can enhance the personal touch when it’s used in the right way.  
• Make it personal
  Recognition means more to people when it feels genuine. Maybe that’s why 83% of employers agree it should reflect generational preferences to make sure it resonates with everyone.  

Wait ‘til you see what else we found

If you want to dig deeper into what employees value most in 2025 – because there’s more to it than recognition, vital as that is – our latest Perkonomics Report: The Challenge of Employee Value has you covered.  

It’s packed with insight on what really drives people at work right now, and what’ll matter even more in the months ahead. Check it out here.