How getting recognition right drives performance and retention
For HR leaders under pressure recognition should be an absolute priority. OC Tanner’s 2026 State of Employee Recognition Report shows that UK employees, in particular, are far more likely to trust their organisation, feel invested in its success and stay longer when recognition is consistent and meaningful.
Yet many companies are still not getting it right. The issue is not necessarily a lack of investment or intent; it is more to do with how recognition is framed and delivered within an organisation.
The reality is that it is often designed for visibility rather than impact and is more about lip service than genuine change. This can create a gap between expectation and outcome.
Essentially, while recognition is widely accepted as valuable, it often fails to deliver measurable results.
From activity to impact
Many organisations have recognition programmes in place that generate activity without delivering meaningful outcomes. While they can be quick to implement, automated thank you messages or other generic mechanisms for rewarding performance can undermine their intent, making recognition feel transactional and inauthentic. Essentially, while standardisation may improve efficiency, it often reduces impact.
To improve business performance, recognition needs to be individual, specific and relevant. Employees respond much better when acknowledgement clearly links to what they have done and why it mattered - not just the outcome, but the effort.
This is clearly evidenced in our report. Employees who do not feel their employer understands how they prefer to be recognised are 96% less likely to thrive at work. This can’t be written off as a marginal figure and shows a fundamental weakness in how recognition is being applied. Effective recognition needs to demonstrate an understanding of individual preferences and use that insight to inform how programmes are delivered.
Embedding recognition
Recognition should also be integrated into day-to-day working practices, rather than being treated as a standalone initiative. When it becomes part of how work is acknowledged and reinforced, it supports both cultural alignment and performance outcomes.
Peer-to-peer recognition is also important in this context. This is particularly true across large, dispersed teams or in modern hybrid working environments, for example, where feedback is less visible. Structured opportunities for colleagues to recognise each other can help to maintain connection.
One way to embed this is through recognition champions - individuals who actively promote recognition across the organisation and encourage consistent use. According to our report, employees in organisations with a recognition champion are three times more likely to recognise their colleagues, with 71% of employers also reporting that champions contribute positively to workplace culture.
Appointing these internal advocates is a low-cost, high-return way to improve adoption, yet only 41% of organisations have someone in this role.
Demonstrating the return on recognition
Recognition is often undervalued because its outcomes are perceived as being intangible.
However, when it is delivered effectively, it can demonstrate a significant return. This year’s study shows that recognition done well results in employees who are:
- 54x more likely to feel personally invested in their organisation’s success
- 52x more likely to trust their employer
- 35x more likely to still be with the organisation in a year’s time
These numbers have clear financial implications. Higher retention reduces recruitment and onboarding costs as well as retaining valuable skills and knowledge within the business, while increased trust and engagement support productivity.
Recognition as a strategic lever
For HR professionals, the question is no longer whether recognition has value, but how fully that value is being realised. That comes down to how it is designed and applied, not how visible it is.
Organisations that can align recognition to employee preferences and embed it into everyday behaviours are already seeing quantifiable gains in trust, performance and retention.
In a cost-conscious business environment, this matters more than ever. Recognition offers one of the most accessible ways to improve outcomes. The organisations that recognise its impact are already relying on it as a consistent contributor to their strategic goals.
Supplied by REBA Associate Member, O. C. Tanner
The worldwide leader in employee recognition solutions that help people thrive at work.
