Recognition’s Rise in the New World of Total Rewards

Deloitte’s 2018 High-Impact Total Rewards study revealed a great deal of room for improvement within the world of rewards. The Net Promoter Score (NPS) for rewards at the time was an abysmal negative-15, and rewards offerings were actually hurting organizations’ employment brand. Recognition, in particular, was largely untapped. It’s human nature to seek acknowledgement for a job well done, but the status quo for recognition programs rarely rose above common and routine activities like service anniversaries. Only 2% of surveyed organizations considered recognition to be a competitive differentiator, and 31% did not consider recognition to be a differentiator at all.

A lot can change in seven years. Deloitte’s updated 2025 High-Impact Total Rewards study found organizations have realized the key role recognition can play in positioning rewards as a competitive differentiator. Disruptors like pandemic lockdowns, economic turbulence and the Great Resignation changed the face of how, when and where work is done — and compelled employers to increase their focus on recognition as a driver for attracting, retaining and growing talent.

In this year’s research, the consulting firm found organizations have become much more likely to think about recognition as part of their total rewards (TR) strategy. And, highly mature organizations are much more likely to do this than less mature organizations, with 34% of respondents stating that recognition is a core element of their TR strategy. These organizations have expanded recognition for work and life milestones beyond service anniversaries to include new hire, marriage, new child, retirement and more. They also recognize quality work by individuals through awards for achievements such as:

• Promotion;
• Completion of training; and,
• Demonstration of creativity and innovation.

Organizations today are discovering and implementing countless opportunities to celebrate and recognize their employees. Through comprehensive strategies and programs informed by employee feedback, they are enabling rewards as a powerful tool to:

• Attract and retain top talent;
• Foster a culture of connection; and,
• Achieve meaningful business results.

High-performing rewards organizations tend to understand that one-size-fits-all approaches don’t fit everyone and tailor their recognition strategies accordingly, offering a breadth of recognition methods including peer-to-peer, manager-to-individual, manager-to-team, and public or private recognition.

Access additional Workspan Daily articles from this research series:

• How Much Have Rewards Practices Changed Since 2018?
• The Importance (and Outcomes) of Flexible, Agile Rewards Strategies

What Makes a Mature Rewards Function?

Even as artificial intelligence (AI) continues to revolutionize the ways in which work gets done, humans remain at the center of mature organizations. In building a culture of recognition, effective rewards functions are intentional in putting people as their top priority, and will harness technology, data and analytics to optimize their offerings and personalize recognition approaches aligned with employee preferences. In fact, the Deloitte research showed mature rewards organizations are 7.2 times more likely to use data and analytics to understand worker preferences and personalize recognition.

Since each worker’s contributions and preferences are unique, organizations rising in maturity are dedicated to offering a diverse range of recognition opportunities for their employees, including team-based awards, spot bonuses, cultural or identity-based celebrations, and honors that highlight specific contributions like volunteering and mentoring. They also vary the ways in which recognition is delivered and utilize technology to communicate appreciation via avenues such as external platforms, shoutouts in newsletters, and more. Once organizations reach the highest level of maturity, they often start to refine the variety of programs to focus on the recognition that matters most to their employees, clearing the noise to elevate the methods that best serve individuals in their workforce.

That dedication to personalized recognition helps to foster an emotional connection between people and the work they do. Connection defines a culture that embeds the recognition of both individuals and teams into daily routines as a natural and continuous part of everyday work. By leveraging data and analytics to surface an acute understanding of employee preferences, mature rewards organizations can fine-tune their recognition strategies in support of what is most meaningful. And, delivering that meaningful recognition is generally easy: By integrating recognition technology into the software and platforms where employees spend the most time, mature organizations can provide instant recognition in just a few clicks.

Driving — and Measuring — Impact with Recognition

Effective recognition strategies build and refine an intentional culture that can drive the experience of recognition. That means empowering managers and leaders to model recognition behaviors aligned to business goals within everyday routines. By consistently embodying a culture of recognition, leaders can both reward their workers for a job well done and encourage them to recognize their peers and colleagues themselves.

With the help of technology and data, organizations can streamline recognition while tracking analytics to identify trends, track participation and refine their approach to best serve the workforce. A more efficient recognition strategy also means paring costs, and mature rewards functions emphasize nonmonetary offerings like growth opportunities, flexible work arrangements and even simple thank-yous — methods that often see as much value as monetary rewards across the workforce.

Mature rewards organizations do not just use technology to deliver recognition — they also employ technology to measure both the impact of recognition and the reception of specific recognition methods among individuals. By harnessing qualitative strategies like employee surveys, manager feedback and anecdotal evidence — combined with quantitative approaches like cost-benefit analysis and pre- and post-program comparisons — organizations can correlate their recognition tactics to key results and adjust their offerings in real time to continuously improve outcomes.

Mature organizations know that the work does not stop after standing up their recognition programs. Consistently sensing the outcomes of specific recognition efforts can allow organizations to refine their offerings to best serve the workforce. These organizations know that the success of a recognition offering does not hinge on a single platform or technology — it comes down to the fundamental rewards strategy. By keeping leaders regularly involved in shaping a living and evolving approach to recognition, organizations can pivot when necessary to ensure recognition aligns with business objectives.

For mature rewards organizations, measuring impact means maximizing impact. After extensive and continuous measurement, these organizations can communicate and celebrate recognition, leading to positive outcomes. Through strategic alignment, thoughtful and timely personalized acknowledgement, and creating a culture of appreciation, organizations can build and maintain an effective recognition program connected to the organization’s overall goals.

Reinforcing Recognition

Organizations at the highest levels of rewards maturity approach recognition nimbly and with intent, developing a personalized and fair recognition culture to prioritize the skills critical to driving business impact. To build an effective recognition experience, consider the following actions:

• Act with intent. After starting with a clear recognition strategy aligned to organizational values, develop a broader plan that allows for multiple programs and approaches based on employee preferences.
• Create a culture of recognition. Building a recognition culture can start with a single program. Once that foundation is laid, look for opportunities to embed the recognition experience through existing software and programs so employees can send and receive recognition within the flow of everyday work.
• Look beyond dollars and cents. Providing meaningful recognition does not mean a budget blowout. Consider nonmonetary acknowledgements like flexible work arrangements, learning opportunities, and verbal and written thank-yous to supplement competitive compensation and benefits packages.

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Experience
• Employee Recognition
• People Analytics
• Total Rewards
• Workforce Engagement