While 47% of employees believe manager recognition is meaningful, just 29% regularly receive it, according to research by Perkbox.
Its Science of reward report, which surveyed 4,000 UK employees and 1,000 UK HR leaders, also found 23% of employee respondents believe reward is based on personal relationships or favouritism rather than contribution, and 37% received recognition in the last month that made them feel valued.
A quarter (25%) of employee respondents said reward in their organisation is structured and clearly defined, however, only 39% understand how reward decisions are made. Although 39% believe reward is fair and consistent, a quarter said recognition depends on who their manager is.
While 47% of employees said manager recognition is very meaningful, only 29% said their manager regularly recognises good work on an ongoing basis.
Less than two-fifths (37%) of female respondents said reward in their organisation feels fair and consistent, compared to 45% of men, and 31% of women believe reward is distributed fairly, versus 39% of men. Women were also less likely to believe their manager recognises good work on an ongoing basis or that recognition is visible across the organisation.
Nearly a third (31%) of employees said a lack of reward and recognition would influence their decision to stay with or leave an organisation. Among those who considered leaving in the past 12 months, 64% said poor reward and recognition contributed.
Tracey Paxton, clinical director at Perkbox, said: “When recognition feels inconsistent or influenced by favouritism, it creates uncertainty and from a cognitive perspective, the brain doesn’t respond well to that. It starts to question what’s valued, what’s expected, and where you stand. Over time, that has a real impact on confidence and motivation. Managers need to be trained to understand, not just the processes around reward and recognition, but the psychological role they play in applying it. If done right, it is one of the most powerful tools to shape behaviour and build trust.
“When someone receives recognition that feels personal and specific, it registers in the brain as a social reward. Managers who acknowledge a particular effort, something an individual actually did, generate a completely different response to those who don’t. More neural activity, stronger emotional connection, and better performance. The productivity link is real.”
