How recognition is shifting to reshape or sustain workplace cultures
Recognition is increasingly important as a strategic driver for shaping workplace culture, boosting engagement, and improving performance. In fact, more than half of UK firms now have systems in place to offer regular appreciation and praise.
Consistent feedback and timely recognition for a job well done can have a significant impact, helping employees feel valued and motivated.
Research also shows that building a culture of appreciation can also make employee burnout less likely and reduce rates of absenteeism. Amid mounting pressures around pay equity, talent shortages, and shifting employee expectations, businesses are rethinking how they engage and inspire their people.
Almost a third (29%) of UK SMEs admit recruitment and retention are major challenges and that these issues will drive changes to employee benefits in 2025, according to Howden’s
Employee Benefit Trends in UK SMEs report. As businesses compete for talent, recognition - alongside competitive benefits - is essential to keep people engaged, motivated, and committed.
The new rules of recognition
We are seeing the move away from one-off or annual recognition events, such as performance appraisals or employee of the month awards, to recognition delivered in real-time.
Introducing frequent acknowledgements into everyday work, organisations can create a culture of appreciation that feels authentic and consistent. Employees feel valued not just once, but continuously throughout the year, which can improve engagement, strengthen the company culture, and nurture a shared sense of purpose.
When employees are recognised in the moment - especially when their actions align with company values or goals - it reinforces positive behaviours across teams. Recognition becomes not just a morale booster but a tool for alignment and performance management.
Delivering personalised feedback has also become more important. Giving employees a say in how they prefer to be recognised - whether through public praise, private feedback, or tangible rewards - helps ensure the gesture is meaningful.
Some people thrive on shout outs in team meetings; others may prefer a quiet thank-you or a personalised note. By offering choice, employers make recognition more relevant, increasing its impact.
Inclusivity is also front and centre for employers embracing recognition.
In a hybrid world, it’s important all employees - whether working remotely, hybrid, or in the office - are seen and appreciated equally. Digital platforms are playing a key role here, enabling remote-friendly, real-time recognition that can be accessed and shared regardless of location. This shift helps ensure that recognition supports broader organisational commitments to equity, diversity, and inclusion.
Peer-to-peer recognition is also gaining ground. While praise from leaders and line managers remains important, enabling employees to recognise one another is just as powerful. It creates a more collaborative, connected workplace where everyone feels empowered to contribute to a positive culture.
Peer recognition builds trust, drives inclusion, and supports cross-functional cohesion. It connects people across roles and departments and ensures appreciation is not confined to hierarchy - it becomes part of everyday team dynamics.
The wellbeing link
There’s also a strong link between recognition, wellbeing, and retention. When people feel seen and appreciated, they tend to feel happier, more secure, and more invested in their work.
In turn, this boosts morale, reduces turnover, and improves productivity.
In an environment where recruiting and keeping talent is a growing challenge, getting recognition right has clear business benefits.
Data from Howden’s Benefits Design Survey 2025, conducted in partnership with REBA, supports this. Over 80% of organisations made significant changes to their benefits in the past year, with employee health and wellbeing cited as the primary driver.
This finding highlights the growing demand for employer-sponsored services - and the increasing pressure to shape workplace cultures that are supportive, engaging, and high-performing.
Finally, digital recognition tools are providing valuable data and insights into reward and recognition. Platforms that track recognition activity can help HR and leadership teams to spot trends, gaps, and opportunities.
Are some teams or employees under-recognised? Are certain behaviours or values being highlighted more than others? This data can inform strategies to make recognition more equitable and effective across the organisation.
As the world of work continues to shift, recognition is evolving too and becoming more personalised, inclusive, data-driven, and embedded into everyday culture. For organisations looking to engage, retain, and empower their people, now is the time to rethink recognition not as an afterthought, but as a fundamental part of their workplace strategy.
Supplied by REBA Associate Member, Howden Employee Benefits
Howden provides insurance broking, risk management and claims consulting services, globally. We work with clients of all sizes to provide dedicated employee benefits & wellbeing consultancy.
