New research to mark Employee Appreciation Day shows recognition may be one of the most powerful, yet overlooked, drivers of engagement, productivity and retention.
As organisations prepare to mark Employee Appreciation Day on March 5 today, new workplace research suggests many companies still face a fundamental leadership challenge: making employees feel genuinely valued.
Insights from Achievers Workforce Institute (AWI) reveal that just 25% of employees say they feel truly appreciated at work, highlighting a significant “appreciation gap” that experts warn could have real consequences for productivity, engagement and retention.
The findings also show the scale of the opportunity for organisations that get recognition right. More than 67% of employees say they would increase their effort by at least 20% if their contributions were noticed and valued more frequently.
WORKPLACE MORALE
The issue is not simply about morale. Research consistently shows that recognition has a measurable impact on workplace outcomes including engagement, job satisfaction and retention. Studies in organisational behaviour have also found that recognition and fairness play a major role in improving employee engagement and reducing burnout.
In an uncertain labour market where companies are balancing economic pressures with the need to retain skilled workers, recognition is increasingly seen as a strategic leadership tool rather than a simple morale boost.
“Appreciation is the strongest multiplier in the employee experience,” said AWI’s MD David Bator. “Employee Appreciation Day is a powerful reminder that when employees feel seen and valued by their leaders, they’re more connected to their organisation’s mission, more productive and far more likely to stay.”
The importance of appreciation in retention is widely supported by workplace research. According to recent analysis, feeling appreciated is one of the top reasons employees remain in their jobs, reinforcing the role recognition plays in retention and loyalty.
OVERLOOKED GROUPS
While recognition gaps affect many employees, the research highlights several groups that appear particularly likely to feel overlooked.
Women
With Employee Appreciation Day and International Women’s Day falling in the same week, the data highlights a striking contradiction: working women are frequently at the centre of recognition conversations, yet many report feeling undervalued.
Women are significantly less likely than men to report feeling appreciated, fairly compensated or supported in career development opportunities. Workplace culture experts say recognition gaps often intersect with broader challenges around equity and visibility.
Generation X
Often described as the “forgotten generation” in the workplace, Generation X employees appear to be receiving less recognition than their colleagues.
Compared with other generations, Gen X workers are:
- Least likely to receive weekly recognition
- Less likely to report a strong sense of belonging
- Less likely to feel supported in career development
These trends suggest recognition strategies may be unintentionally overlooking experienced mid-career employees.
Healthcare Workers
The findings also highlight recognition challenges within healthcare. Despite working in a profession centred on care and service, healthcare employees report significantly lower levels of recognition from their managers, alongside weaker feelings of belonging and trust in leadership.
At a time when healthcare systems continue to face staffing pressures and burnout, these signals could have implications for retention and workforce wellbeing.
HOW RECOGNITION IMPACTS PERFORMANCE
Beyond culture, recognition also appears closely tied to measurable workplace outcomes. The research highlights several striking correlations between appreciation and performance:
Belonging fuels engagement
Employees who feel appreciated are 54 times more likely to report a strong sense of belonging at work, one of the strongest predictors of engagement.
Recognition strengthens connection
Employees who are frequently recognised are:
- 56 times more connected to company values
- 12 times more likely to find their work meaningful
- 41 times more likely to feel connected to their manager
Frequent recognition boosts productivity
Employees recognised weekly are 2.6 times more likely to report being highly productive.
Appreciation improves retention
Employees who feel valued are 2.5 times more likely to stay with their employer. Workplace experts say this reinforces a key leadership insight: recognition is not simply symbolic, it shapes how employees perform and whether they remain committed to their organisation.
Recent research also highlighted that two-thirds of employees say appreciation at work is in short supply, reinforcing how widespread the issue has become across modern workplaces.
EMBEDDING RECOGNITION INTO EVERYDAY WORK PRACTICES
Employee Appreciation Day may offer a moment to celebrate teams, but experts increasingly argue that appreciation must extend beyond a single annual event. Organisations seeing the strongest engagement gains are those that embed recognition into everyday leadership practices, encouraging managers and peers to acknowledge meaningful contributions in real time.
Simple gestures such as timely feedback, public praise or acknowledging progress can create powerful reinforcement loops that boost motivation and performance. When appreciation becomes part of everyday workplace culture rather than a once-a-year initiative, it can strengthen trust, improve collaboration and help organisations build more resilient teams.
PRACTICAL GUIDE: HOW TO CLOSE THE APPRECIATION GAP
For organisations looking to strengthen recognition and employee engagement, workplace experts recommend several practical steps.
1. Recognise contributions frequently
Recognition works best when it happens regularly, not just during annual celebrations or formal reviews. This in turn can also boost workplace wellbeing, as reported.
2. Connect recognition to company values
Recognition becomes more meaningful when it highlights behaviours that reinforce company culture and strategic goals.
3. Empower managers to lead recognition
Managers play a crucial role in ensuring employees feel seen and supported. Training leaders to give thoughtful recognition can significantly improve engagement.
4. Encourage peer-to-peer recognition
Recognition should not only flow from leadership. Encouraging colleagues to acknowledge each other builds stronger team relationships and belonging.
5. Make appreciation part of everyday leadership
Organisations that build recognition into daily habits – team meetings, project milestones and feedback cycles – see stronger productivity and retention outcomes, as reported.
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