A shift is underway in how organizations view recognition, according to new independent research by Kudos, in partnership with Sago and TSC, which surveyed people managers and HR leaders.
The Employee Recognition Trends survey finds the majority of organizations are putting recognition under the same ROI lens as other strategic initiatives, with 90% now tracking outcomes of their recognition programs, and nearly 40% running ROI analyses to directly link culture investments to productivity, retention, and profitability.
The payoff is clear, with 84% of organizations reporting stronger employee engagement after implementing recognition platforms, and 67% reporting measurable gains in productivity. Meanwhile, nearly two-thirds (64%) of managers and HR leaders say budget constraints limit their ability to recognize employees as often as they’d like.
“Organizations today are under pressure to show measurable impact from every initiative, and recognition is no exception,” says Muni Boga, CEO of Kudos. “The survey data reinforces what we see every day, that genuine recognition not only engaged teams but drives strategic outcomes and productivity. Recognition is about to go through a transformation, and this survey highlights the need for smarter tools that maximize impact and efficiency.”
Organizations are increasingly modernizing recognition with AI and automation:
- Two-thirds (67%) of managers and HR leaders are now using AI, specifically AI-assisted writing tools, in rewards and recognition to reduce manual effort.
- Most (69%) organizations use smart suggestions and 66% use scheduled recognition.
- HR leaders are more likely than people managers to embrace AI-powered recognition, with 73% of HR leaders valuing AI-assisted writing tools compared to 60% of people managers.
