Recognition in Recession: 15-Point Yearly Drop in Recognition Fuels Increasing Workforce Disengagement

Achievers Workforce Institute’s annual State of Recognition Report reveals a decline in regular workplace recognition that is fueling employee disengagement, eroding trust, and hurting productivity, and offers insights on how organizations can turn the tide

TORONTO--(BUSINESS WIRE)--Employee recognition is in sharp decline compared to last year, adversely impacting employee performance, according to Achievers' 2025 State of Recognition report from Achievers Workforce Institute (AWI). AWI is the research and insights arm of Achievers, the world's most utilized recognition and reward software. The significant decline has initiated a ripple effect across key workplace metrics, including employee engagement, trust, and productivity.

AWI’s annual State of Recognition Report – now in its fifth iteration and the leading analysis of recognition behavior and impact – analyzes the experiences of 3,600 employees across the world. This year’s study uncovered widespread erosion of recognition frequency, consistency, and perceived value.

The data is clear: when recognition drops, performance follows. Ninety percent (90%) of employees say recognition would boost their productivity, and 91% say they’d put in more effort if they felt their contributions were valued. Yet, AWI’s latest report reveals a stark contrast between aspirations and reality: only 23% of employees feel meaningfully recognized at work, and over half are recognized just a few times a year or less. With only 26% of employees reporting that they feel engaged at work and just 23% describing themselves as enthusiastic about their jobs, under-recognition is a key driver of the $438 billion global disengagement crisis.

Recognition is in Retreat, Needs a Revision
While the workplace struggles to find solid ground as it navigates never-ending uncertainty, recognition remains one of the most effective but underutilized levers for engagement and performance. The good news? Recognition hasn’t become entirely obsolete, but it’s coming later, less often, and with less impact.

Weekly recognition may have dropped significantly, but quarterly recognition has more than doubled in the last year. This indicates that employees want to recognize others but may simply lack the tools or time to do so with consistency.

However, there’s a direct link between recognition frequency and employee effectiveness. Employees who receive meaningful weekly recognition are 9 times more likely to feel a strong sense of belonging, 6 times more likely to see a long-term career at their company, and 2.6 times more likely to be their most productive selves. These numbers tell us that the more recognition the global workforce receives, the more global businesses stand to save on costly turnover and disengagement, which together amount to trillions in lost productivity each year.

Manager Recognition Rewrites the “Toxiboss” Playbook
Manager recognition is the most effective way to ensure employees feel valued, and thereby more apt to put in extra effort. The most effective managers make recognition a daily priority, and they do it because their organizations foster a recognition-centric culture on a daily basis.

When employees feel recognized by their managers, they’re up to 19 times more likely to trust them, 16.5 times more likely to recommend their company as a great place to work, and 2–3 times more likely to feel engaged, productive, and connected. Yet only 15% of employees say their manager regularly recognizes them – a drop from 20% last year – and a disheartening figure that has led to a decrease in the percentage of people who are engaged, productive, committed, and feel warmly welcomed at their company. This finding means that most managers fall under the “toxiboss” archetype; those who expect great work from their employees but aren’t taking the meaningful steps themselves to show their workers that their work is appreciated and critical to their company’s mission.

“The data reaffirms a truth many of us have known for years, you can’t be a great manager if you don’t express gratitude,” said David Bator, Managing Director of AWI. “When managers give frequent, meaningful recognition to their teams, their workers are more likely to bring their whole selves to work. Unfortunately, most managers don’t do this and would be shocked to be called ‘toxic’ as a result. It’s not that these leaders don’t cherish their people; they simply may not understand the science-backed power of recognition. Therefore, they prioritize other items on their endless to-do lists, when in fact, recognition is the single most effective tool for building high-performing teams.”

Recognition is a Lifeline in Today’s Crisis of Connection
The workplace is not an easy place to be right now, as layoffs, fluctuating economic conditions, and the ushering in of AI have combined to result in a widespread case of the workplace blues defined by disconnection, loneliness, and disengagement. In many cases, people work more closely with AI rather than their coworkers, leaving a widening connection gap in dire need of being filled by something as simple as friendship. However, when employees are regularly and meaningfully recognized by their peers, they are 33% more likely to feel a strong sense of belonging at their workplace, and 37% more likely to see a long career at their company. These numbers underscore the notion that peer recognition is critical to fostering a widespread sense of belonging.

“In today’s workplace, we're technologizing humans and humanizing technology, but we're missing the opportunity to humanize humans,” said Hannah Yardley, Chief People and Culture Officer at Achievers. “With the right strategy, tools, and culture in place, companies can use recognition to close today’s connection gap, unlocking the full potential of their business and their people.”

As organizations fight to retain top talent and build a resilient company culture in today’s volatile workplace, the message is clear: connection is the cure to disconnection, and recognition isn’t an optional feel-good gesture, but an essential cultural anchor.

Download the full 2025 State of Recognition Report here.

About The Study
This report is based on surveys conducted in May 2025, completed by 3,600 employees across the United States, Canada, the United Kingdom, Australia, and Singapore. For more information about the 2025 State of Recognition Report, click here.

About Achievers
Achievers recognition and reward software provides powerful tools to help business leaders shape employee behaviors and drive real business results. Visit us at www.achievers.com.