Global branded payments leader Blackhawk Network has unveiled new research on the current state of employee engagement and provided a grim look at current levels of workplace satisfaction. According to the study, 87% of employees have concerns regarding their current employment and 68% of employees reported feeling undervalued at work, highlighting a growing disconnect between employees and their employers.
U.S. employee engagement hit an 11-year low in 2024—a trend known as “The Great Detachment.” With fewer opportunities available, the disengagement and dissatisfaction has led to “The Great Stay,” where employees remain in their roles only due to a lack of alternatives. However, the reseach finds that seven in 10 employees are actively seeking new opportunities, signaling that this period of stability for employers may soon give way to increased turnover.
“Employees are the heart of any organization, and even in an employer-favorable market, showing employees they’re valued is important for long-term business health,” says Jeff Haughton, SVP, incentives, corporate development, and strategy at BHN. “Strategic rewards and recognition programs boost loyalty, productivity, and retention. Yet, the research shows that fewer than half of companies offer rewards and recognition programs. When employees feel overlooked, that disconnect can lead to severed ties once the job market shifts in their favor—making it much harder for employers to rebuild trust and retain top talent.”
Additional key findings include the following.
- Recognition drives loyalty and performance. More than two-thirds (68%) of employees surveyed feel more loyal to their employer when rewarded for their contributions, while 66% say timely recognition improves their focus on achieving goals. Despite this, BHN’s Post-Holiday Research finds that only 45% of employees received holiday recognition from their employers in 2024—a 5% decrease from the previous year and a huge miss for employers.
- Loyalty is tied to pay. Compensation and benefits remain the top factors employees consider when evaluating potential employers, emphasizing the importance of aligning offerings with employee expectations. More than two-thirds (68%) of employees surveyed stated that a higher salary would increase their loyalty to their employer, reinforcing the importance of fair compensation in retaining top talent.
- Pay influences RTO willingness. Over half (61%) of employees surveyed indicated that a pay increase would make them more willing to work in a physical workspace, highlighting the role of financial incentives in return-to-office (RTO) decisions. However, despite return to office mandates, the workplace landscape has evolved, with a mix of hybrid, remote, and in-person employees now the norm. Employers must ensure their engagement and recognition strategies effectively reach a dispersed workforce, regardless of where they work.
- Gift cards remain a preferred reward. Smart employers use gift cards to recognize employees for milestone celebrations, performance achievements, and everyday appreciation, making them a flexible and valued reward option.
- Timeliness matters. Two-thirds (66%) of employees surveyed want to receive their rewards within one week of the achievement or milestone being recognized. Delays diminish the impact, with a third of employees saying a reward loses value if given more than one week later, and 25% reporting it loses value even within one week.
- Professional growth opportunities are in demand. As skills-based hiring and AI-driven recruiting continue to evolve, they remain imperfect solutions for closing workforce gaps. The research found 17% of employees surveyed want more opportunities to grow professionally, highlighting the demand for upskilling initiatives that help HR teams develop existing talent. Investing in current employees strengthens productivity and loyalty, ultimately boosting retention and providing a more cost-effective approach to filling skill gaps.
- Shifting workforce demographics are reshaping recognition expectations. With millennials and Gen Z projected to make up over half of the workforce in 2025, businesses must adapt their strategies to align with these generations’ evolving preferences. Gen Z, in particular, values more peer-to-peer recognition and appreciates acknowledgment for personal milestones like birthdays and work anniversaries.
“Investing in rewards and recognition programs can deliver measurable returns by improving employee engagement, productivity, and retention while reducing the high costs of attrition,” Haughton says. “When employees feel valued for their contributions, they are more motivated and focused on achieving their goals. This is especially important as Gen Z enters the workforce in greater numbers. Companies that invest in recognition programs aligned with these needs are investing in their future success.”
