Two-fifths (40%) feel their employer is not doing enough to make them feel valued, according to research by global employee benefits platform Perkbox.
Its study of 4,000 UK employees and 1,000 employers found that 42% of employee respondents feel undervalued at work, resulting in a dip in morale, productivity and retention. Among those who feel undervalued, motivation has dropped by 57%, alongside a 50% drop in morale and 47% in enthusiasm.
Recognition is the top driver of feeling valued, cited by 53% of employees and 60% of employers, yet only 30% of workplaces offer recognition programmes. Three-quarters (79%) of employees would feel more valued with a tailored benefits package, and 68% said better benefits would boost productivity, rising to 84% among 25–34-year-olds.
Additionally, 35% are calling for financial wellbeing support, 30% want recognition and reward programmes, and 29% would like health and wellbeing initiatives.
Meanwhile, 54% of undervalued employees are planning to seek new opportunities in 2026. Despite this, many are also staying put in roles despite feeling overlooked, due to financial pressures and job security fears.
Public sector staff feel less valued than those in the private sector, at 6.40 and 6.92 out of 10, respectively. Employers with more than 1,000 staff score lowest on employee value, at 6.21, while 64% link undervaluation to lower productivity and 53% blame it for retention issues.
Doug Butler, chief executive officer of Perkbox, said: “Employees’ perception of how they are valued by their employers understandably impacts their morale and, in turn, engagement, productivity and retention. Focused strategies and tools that foster cultures where all employees feel valued are worthwhile investments of time and resources for businesses in our current social and economic environment.
“Employees want to be recognised first and foremost, but it’s clear that there’s a key place for benefits too. Our data suggests they can be an effective lever for productivity and wellbeing and could be a key tool in the fight against the value exodus. Employers which close the value gap now will keep their people and future-proof their businesses.”
