Bonusly, the leading employee recognition platform, today released its 2025 State of Recognition Report, unveiling why workplace relationships are critical to company performance in the age of distributed work and artificial intelligence.
The comprehensive report highlights a fundamental transformation in how organizations approach workplace dynamics, emphasizing human connections as the primary driver of retention, growth, and ultimately performance.
Key Findings
The report reveals significant shifts in workplace relationships and the strategic role employee recognition plays:
- Connection across boundaries: Employees want modern ways to connect and engage with colleagues outside their direct team. Recognition rates have more than doubled since 2020, with 40% of recognition occurring across locations and 60% spanning departments, effectively breaking down regional and organizational silos.
- Engaging the disengaged: According to Gallup, employee engagement recently dropped to about 30%—a 10-year low. While a majority of today’s workforce reports never receiving recognition, user data illustrates how the frequency of recognition increases to once per week when teams have access to effective recognition platforms.
- Human-centric skills in the AI era: As artificial intelligence automates routine tasks, uniquely human skills like collaboration and communication are increasingly valued, with recognition playing a pivotal role in reinforcing these essential workplace values.
Strategic Insights
“We’ve entered into a relationship economy where the strength of human connections defines high performance,” said Charles Hough, CEO, Bonusly. “The most successful organizations are the ones that foster strong relationships. Recognition is the bridge that strengthens these bonds, and in the relationship economy, connection is the new currency. The companies that embrace recognition as a fundamental driver of connection, performance, and success will shape the future of work.”
“The future of work isn’t about how well we keep up with AI; it’s about how well we double down on being human,” said Tara Cooper, Work Tech Analyst, Mercer. “AI isn’t on the horizon—it’s here, reshaping work in real-time. In a world where knowledge is no longer the currency, human connection is. The organizations that prioritize and elevate this human focus won’t just survive the AI era; they’ll lead it.”
The report underscores recognition as more than an HR initiative—it’s a strategic approach to building workplace connections and driving company performance.
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