Today, O.C. Tanner, the global leader in employee recognition solutions, released its second annual State of Employee Recognition Report. The report unpacks how organizations can leverage recognition to increase employee investment in organizational success, strengthen belonging and foster high-performance across teams.
Based on data gathered from over 4,200 employees across 10 countries, the report underscores the impact of personalized recognition on cultural outcomes and business performance and provides actionable insights for HR practitioners to integrate recognition as a success strategy.
“In today’s workplace, there is tension as leaders are increasingly investing in technology to drive performance while employees battle uncertainty and anxiety driven by evolving expectations,” said Mindi Cox, Chief People and Marketing Officer of O.C. Tanner. “Our research reveals a better way to a win-win; companies who invest in employee recognition that fosters social connection at work will build high-performing teams and see both cultural and business ROI.”
The research highlights several key trends: the ROI of employee recognition, the role it plays in uniting diverse and dispersed teams, how social connections and recognition champions increase engagement, and the impact of personalized and sincere recognition on cultural and business outcomes. Key findings include:
- Integrated, community-building recognition reinforces high performance and ROI: Employees with integrated recognition programs that support workplace connection are 21x more likely to be personally invested in the organization’s success and 25x more likely to produce great work. It also increases company loyalty, with employees being 13x more likely to give a high Net Promoter Score and 26x more likely to work at the organization another year.
- Recognition builds inclusion, particularly for diverse and dispersed teams: With 62% of employees saying budget cuts have impacted their ability to teambuild, integrated recognition programs offer a strong solution. Additionally, geographically dispersed teams with programs that strengthen connection are 51x more likely to excel at collaboration.
- Social connection drives recognition technology engagement: The most compelling factor in encouraging participation with recognition technology is peer influence, and employees are twice as likely to use recognition tech when they see other employees use it consistently. What’s more, employees who encourage others to engage with recognition platforms are 3x more likely to log in themselves, creating a positive feedback loop of appreciation.
- Employees crave intentional, personalized recognition: Generic recognition notes and symbolic awards that lack substance and specificity often backfire – because when employees feel their leaders don’t know their recognition preferences, their odds of thriving at work decrease by 89%. On the flip side, when appreciation and awards feel intentional, employees are 8x more likely to trust their organization.
- Recognition champions increase appreciation participation, but aren’t showing up where they’re needed most: Employees at companies with recognition champions – employees or leaders who advocate for, promote, model, and support recognition – are three times more likely to regularly recognize coworkers. Unfortunately, frontline industries that often need the most support through employee recognition, including healthcare, retail, and hospitality, have the lowest rate of recognition champions.
“High-performing cultures don’t run on perks. They run on trust, connection, and people who feel seen,” said Dr. Alexander Lovell, Vice President of the O.C. Tanner Institute. “This report shows leaders how to build recognition into everyday work so it strengthens relationships and drives the outcomes they care about: better work, stronger teams, and higher performance. Recognition stops being a moment and starts becoming momentum.”
To learn how businesses can power high-performing teams through integrated recognition and to download the full report, please visit: octanner.com/state-of-employee-recognition-report/2026
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