O.C. Tanner, the global leader in employee recognition solutions, has released its inaugural 2025 State of Employee Recognition Report.
The report provides timely insights on enhancing workplace experiences by focusing on authenticity, personalisation, and human connection—even as AI adoption accelerates.
Based on responses from 2,815 employees across the United States, Canada, Australia, India, and the United Kingdom, the report provides a comprehensive view of what makes recognition meaningful in today’s evolving work environments.
It serves as a guide for business leaders and HR professionals seeking to foster cultures that thrive on appreciation and connection.
Key Findings: Recognition Must Be Human, Personal, and Purposeful
The report identifies several critical trends shaping the future of employee recognition:
- In-person recognition remains vital: Despite technological advances, 74% of employees say personalised messages of appreciation make recognition more valuable. While 55% believe AI can enhance recognition, and 60% say it helps craft better messages, the human element remains irreplaceable.
- Purpose-driven awards amplify impact: Recognition linked to company purpose is 10x more meaningful, while awards that highlight employee impact are 11x more meaningful. When an award symbolises that someone is truly valued, its meaningfulness increases 12x.
- Custom awards drive performance: Employees receiving custom awards are 5x more likely to do great work and 4x more likely to be engaged.
- Recognition is not yet universal: While 75% of organisations recognise service anniversaries and 63% celebrate top performers, many employees still feel overlooked in their daily contributions.
- Inclusivity is essential: Although 61% of employees use digital platforms for recognition, those with limited tech access are 57% less likely to feel their program is accessible and 46% more likely to perceive recognition as hollow. Only 65% believe recognition is embedded in their culture.
- Generational differences matter: Millennials and Gen Z leaders are 3x more likely than Baby Boomers to view symbolic awards as career highlights. Younger employees value recognition that reflects identity, purpose, and impact.
- Authenticity fuels culture: While 61% of employees describe recognition as very meaningful, 54% still feel it can be an empty gesture. Custom awards exclusive to an organisation are 8x more impactful, and when personalised, that impact jumps to 24x.
O.C. Tanner Leadership Commentary: Recognition as a Cultural Imperative
Mindi Cox, Chief People and Marketing Officer at O.C. Tanner, noted, “Today’s business leaders are rightly focused on improving efficiency and performance, but our research reveals that when this emphasis becomes overly transactional, it can undermine authentic human connection and results.”
Gary Beckstrand, Vice President of the O.C. Tanner Institute, added, “Technology and AI can enhance the experience, but human authenticity, personalisation, and symbolic meaning are what make recognition truly impactful.”
In the IMEA region, cultural relevance and sincerity are especially important. Zubin Zack, Managing Director of O.C. Tanner IMEA, emphasised, “Recognition must cater to traditional cultures and values. It must be personal and sincere—because no technology or transactional system can replicate the power of genuine connection.”
About O.C. Tanner
Founded in 1927, O.C. Tanner is a global leader in employee recognition and culture-building solutions, helping organisations create meaningful workplace experiences.
O.C. Tanner has a presence in over 180 countries, where it supports HR leaders in building meaningful workplace cultures.
It does so through strategic recognition programs, data-driven insights, and custom awards that promote purpose, belonging, and human connection.
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