News Spotlight

Employers now give cash for insurance. Rather than offering traditional group health plans, an increasing number of U.S. employers are providing employees with cash stipends to purchase individual health insurance plans of their choosing (Yahoo! Finance).

Job seekers face lengthy application struggles. Many laid-off workers are finding they must submit an unusually high volume of job applications before finally landing a new role, highlighting how tough today’s job market has become (CNBC).

Companies replace merit raises with base pay increases. Rather than rewarding employees based on individual performance, many corporations are now providing the same base-level pay increase to all eligible workers, simplifying the compensation approach and reducing variability (Marketplace).

Stat of the Week

A new study finds that only 20% of U.S. employees report having a best friend at work.

This signals a challenge to building the kind of social connections that drive engagement, retention, and collaboration. Workplace friendships are strongly linked to higher job satisfaction, stronger commitment, and better performance, so this decline points to a potential erosion of culture and loyalty. HR leaders will need to rethink how they foster connection in increasingly hybrid or dispersed environments—through intentional team building, mentorship programs, collaborative projects, and spaces (both virtual and in-person) that encourage authentic relationships. Prioritizing belonging and trust is no longer a soft initiative; it is a strategic necessity for sustaining performance and keeping talent engaged.

Deep Dive Article
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Why Recognition Is Even More Important Now

After a turbulent half-decade, many employees are navigating new technologies, reorganizations, and heavier performance pressures—often without the psychological safety that helps them thrive. In that climate, recognition isn’t a “nice to have”; it’s a stabilizer. Genuine, timely, and specific appreciation clarifies what good looks like, reinforces purpose, and builds the social glue teams need to deliver through constant change.

At the same time, engagement has plateaued, and stress is stubbornly high. Gallup’s latest readings show global engagement slumping to 21% in 2024 and remaining largely flat in the first half of 2025, with disengagement draining an estimated $2 trillion from U.S. productivity alone. When motivation wobbles at this scale, organizations must double down on the few levers that measurably lift energy and performance—recognition chief among them.

Workers also tell us they’re anxious. In May 2025, the American Psychological Association reported that most U.S. workers cite job insecurity as a significant source of stress. In uncertain environments, affirmation that “what I did mattered” reduces threat, strengthens belonging, and helps people persist. Recognition translates ambiguity into clarity: you did X, it created Y, and we value it.

The context: engagement is fragile—and costly

Employee engagement has slipped in recent years, and many organizations are struggling to keep motivation steady. When engagement is low, performance, retention, and customer outcomes typically decline as well. The financial impact is significant, with disengagement estimated to cost the U.S. economy about $2 trillion annually. Recognition stands out as one of the simplest and most effective ways to turn that tide, because it connects individual effort to shared success and helps employees see the value of their work.

Recognition buffers stress, burnout, and insecurity

When people feel seen, they’re more resilient. In periods of high pressure or uncertainty, recognition acts as a counterweight by reinforcing social connection and personal efficacy—two essential ingredients for maintaining well-being at work. Acknowledging contributions also helps reduce the sense of isolation many employees feel in hybrid or dispersed settings. Simply put, recognition doesn’t just lift mood in the moment; it strengthens the capacity to handle challenges and sustain performance over time.

It’s not just morale—recognition moves results

Recognition is also a performance system. In a 2025 data set, three-quarters of employees said they would be more productive if recognized more frequently, with the effect particularly strong among younger workers. And organizations that elevate appreciation to a top three priority report measurably higher feelings of being valued across their workforce, an early indicator of improved retention and discretionary effort. While vendor studies vary, the directional signal is consistent: frequency and quality of recognition predict better outcomes.

Modern recognition must be inclusive, specific, and multi-channel

Today’s workforce expects appreciation to be fair and transparent. Yet recent analyses point to recognition gaps in inclusive workplaces—employees in underrepresented groups report that their contributions are still overlooked, undermining the very inclusion efforts companies tout. Closing that gap requires objective criteria for what gets recognized, visibility into who receives recognition, and manager training to counter bias.

Recognition delivery also needs to match how people work—distributed, digital, and fast. Market reviews show modern recognition platforms enabling real-time e-cards, badges, points, and peer-to-peer shout-outs integrated with collaboration tools. Still, employees don’t want to lose the human element: current research finds most employees see technology as critical to a program’s success and foresee in-person moments remaining a dominant practice. The takeaway is “both/and”: use software for reach and analytics, but stage memorable human rituals so appreciation feels authentic, not automated.

Managers are the fulcrum

If engagement is stuck, managers are often stuck with it—under-supported and stretched thin. Gallup’s latest update underscores that leadership and manager capability remain the linchpin for team engagement. Equip managers with simple, high-frequency recognition habits (e.g., one specific acknowledgment per person per week) and prompts embedded in their workflow. Provide micro-training on how to make praise behavior-based (“what you did”), impact-anchored (“why it mattered”), and personalized (“how it played to your strengths”).

Tie recognition to strategy—and benefits people value

Recognition works best when it reinforces the organization’s direction. Link every shout-out to a strategic pillar, customer promise, or cultural value to make priorities tangible. And don’t separate appreciation from the broader total rewards experience. SHRM’s 2025 Benefits Survey shows employers adjusting health and financial benefits (from HSA contributions to coverage trends) as employee expectations shift. Recognition layered over competitive, relevant benefits tells workers: we value you and we invest in what you need to thrive.

Look to exemplars—but copy the principles, not the perks

Lists like PEOPLE’s 2025 “100 Companies That Care” showcase organizations that operationalize care at scale via education support, financial assistance, and mental health resources. These programs often embed recognition into everyday rituals—publicly celebrating wins, funding community service, and spotlighting role-model behaviors. You don’t need a Fortune-sized budget to emulate the principles: make contributions visible, connect accolades to purpose, and build traditions that employees look forward to.

Five practical moves to elevate recognition now

1. Codify “recognition moments.” Define high-value triggers (customer kudos, cross-team collaboration, cost savings, quality improvements) and set expectations for rapid acknowledgment within 72 hours. Calendar prompts and lightweight templates help managers follow through consistently.
2. Design for equity. Publish recognition criteria, track who gets recognized by role, location, gender, and ethnicity, and review quarterly to close gaps—especially where inclusion goals are in play.
3. Blend digital with human rituals. Use platforms for reach and analytics, but schedule in-person moments—standups, town halls, milestone ceremonies—so gratitude feels real.
4. Measure what matters. Pair recognition activity data with engagement, well-being, and retention metrics. Watch for manager-level variance; coach the outliers. As engagement recovers, quantify the productivity gains to sustain investment.
5. Connect it to benefits and life events. Tie recognition rewards to options employees value now (from mental health supports to financial wellness), aligning with the evolving benefits landscape.

Recognition is a strategy, not swag

Recognition is one of the most cost-effective, high-impact acts a leader can take. It steadies people amid uncertainty, directs effort toward what matters, and compounds into better engagement and performance. The research is clear: engagement is fragile, stress is elevated, and managers are pivotal—so make recognition a daily management practice, architect it for equity, and connect it to your strategy and rewards. Organizations that do will not only feel better; they’ll compete better.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!

Quote of the Week

“Spread love everywhere you go. Let no one ever come without leaving happier.”
​Mother Teresa