Need to know:
- Strong schemes recognise good employee behaviours as well as results.
- Employees can feel valued through recognition of their individual contributions and how they have impacted the organisation.
- Employers can look at engagement, retention and productivity to measure the effect of recognition schemes.
The impact of recognition on employees’ wellbeing and motivation is not something employers should ignore. Indeed, Reward Gateway | Edenred’s May 2025 Workplace wellbeing report revealed that environments with good or excellent recognition showed a 30% reduction in the number of employees feeling frequently stressed than those with poor recognition.
So, how can employers explore this within their own workplaces to ensure employees feel valued from recognition initiatives?
Recognition schemes and end goals
Recognition schemes range from informal manager-led and peer-to-peer recognition, through to structured digital platforms that offer awards, points, vouchers or experiential rewards. For larger or more dispersed teams, the latter can help keep recognition visible and consistent. Employers can also choose to utilise nomination schemes and in-person shout-outs.
When choosing a scheme, employers should consider details such as whether it is easy to send and receive recognition, if data is easily accessible in order to measure impact, and how it is communicated to staff. This can help ensure all employees feel valued.
Recognition that is visible to the workforce drives behaviours and helps to create a culture of genuine appreciation, explains Hannah Power, employee experience specialist at Reward Gateway | Edenred.
“Non-monetary recognition, such as e-cards, are the foundation of saying ’thank you’ or ‘well done’,” she explains. ”These can recognise employer values and help showcase how individual work contributes to the organisation’s mission. For above and beyond behaviours that directly impact strategic outcomes or goals, a monetary reward could be used, providing extra appreciation that motivates employees and helps them understand the impact of their contributions.”
Employers can combine approaches, offering multiple ways for employees to be recognised. Peer-to-peer recognition enables staff to highlight colleagues’ everyday achievements that managers might miss, while manager-led recognition clarifies standards, ensuring consistency, authenticity and fairness across the organisation.
Employees value being recognised for everyday effort, personal milestones and exceptional performance, says Jo Werker, chief executive officer at Boostworks.
“The end goal is not just to reward output, but to build emotional connections, reinforce positive behaviours and create a culture where people feel a strong sense of belonging and connection with organisational values,” she explains. ”Over time, they also help to reinforce desired behaviours, improve retention, support wellbeing, and drive performance by aligning individual efforts with wider employer objectives.”
Valuing through recognition
To avoid any feelings of inauthenticity, recognition schemes should be part of everyday working life, rather than occasional initiatives.
“When recognition happens in the moment and reflects real effort, it strengthens emotional connection and reinforces the feeling that an individual’s work truly matters to the organisation,” says Werker.
Boostworks’ June 2025 research revealed that employees want recognition to feel timely, personal and genuine, particularly from their line manager or peers. Therefore, employers should be specific in explaining what employees did and why it mattered.
Connecting someone’s action to what the organisation is trying to achieve is reinforced every time recognition is given, says Pippa Van Praagh, vice president of operations at Perkbox.
“That’s where employers get the compound effect,” she explains. ”If recognition is random, people may see through it or question it. Ultimately, the goal is sustained engagement. It’s important that people feel their contribution matters over time, not just in isolated moments.”
Highlighting individual contributions in line with goals, strategic outcomes or length of service can ensure employees feel valued, along with how they have impacted the organisation.
“Whichever mode is used, recognition schemes should be timely and embedded within workplace culture,” adds Power.
Measuring impact on employees
There are multiple ways of measuring how valued employees feel from recognition. These include engagement surveys, pulse checks, and feedback and insight from recognition platforms. Looking at people metrics, such as sickness absence and turnover data, can also help, because exploring how many employees are taking absences or leaving their roles can reveal their sentiment towards their employer.
How valued someone feels can shift quickly. If measurement only takes place once a year, nuances will be missed, says Van Praagh.
“Managers need to have check ins where they are listening and not just reviewing output,” she explains. ”Human conversation is vital to understand what’s really happening. When people feel undervalued, motivation and performance drop. Although that link shows up in the numbers, it usually shows up in conversation first.”
Reward Gateway | Edenred’s Workplace wellbeing report also revealed 69% of employees said their wellbeing would improve if they were just thanked more. Therefore, it is critical to use recognition to ensure employees are happy and feel genuinely valued.
Recognition is linked to higher engagement, stronger performance and lower attrition, particularly when organisations are under pressure to retain talent, adds Werker.
“Employees who feel appreciated are motivated, loyal and more emotionally invested in the success of the organisation, which, ultimately, supports long-term productivity and organisational resilience,” she says.
Utilising recognition schemes to ensure employees feel valued, therefore, can help to build a committed, productive and engaged workforce.
