The modern workplace is undergoing a significant shift, and with it, workforce expectations and desires are transforming. In today’s dynamic and increasingly purpose-driven workplaces, traditional recognition methods may not always hit the mark. 

Employees want personalized recognition for what they do and who they are. According to Gallup, recognition boosts employees’ engagement, well-being, inclusion, and belonging.  Recent data from Espresa’s 2024 Global Benchmark Report shows that 87% of engaged employees are more likely to stay when they receive recognition, and 83% feel more motivated to excel when acknowledged for their efforts.  

Recognition-rich workplace cultures see cost savings in retention. Everyone wants to work in an organization that truly values their efforts and contributions; these findings emphasize the business-critical role recognition plays in both retention and performance.

In this article, we’ll explore the evolving landscape of employee recognition and what motivates today’s employees. We’ll move beyond conventional wisdom to uncover the deeper needs that drive employee engagement, build institutional loyalty, and create a thriving workplace culture. It’s time to rethink rewards and understand what today’s employees really want from recognition.

Here’s what we’ll cover: 

A meaningful recognition experience doesn’t end with the gesture itself–it continues through the rewards employees receive.

Creating a recognition-rich workplace culture that drives engagement

A recognition-rich culture doesn’t emerge by accident. It requires strategic planning and design. Democratize the recognition process so that it’s accessible, inclusive, and empowering. The best leaders promote a recognition-rich environment, encouraging praise from every direction and emphasizing an awareness of how everyone wants to receive appreciation. 

Peer-to-peer platforms empower direct colleague appreciation, while manager-led programs ensure consistent team recognition. Informal acts of gratitude flourish alongside transparent and inclusive formal initiatives celebrating major wins. Inclusive Recognition and Rewards programs enthusiastically celebrate team triumphs and shine a spotlight on diverse contributions for a vibrant culture of appreciation.

And as long as it’s honest and deserved, you can never give too much recognition. 

How to think beyond traditional, transactional gestures

Today’s employees value recognition and rewards that go beyond traditional transactional gestures. 

Design recognition programs connected to impact 

A purpose-driven workplace integrates organizational values into daily work and culture. Impact-focused recognition emphasizes the influence of individual actions on the company’s purpose, not just task completion, strengthening the connection between employees and your mission.

Leaders clearly communicate the “why” behind the praise and articulate how specific contributions positively impact the team, the company’s mission, and the community. Employees crave explicit recognition that links their efforts and achievements to broader organizational goals. 

For example, a simple “good job” is less impactful than saying, “Your innovative approach to streamlining the client onboarding project directly led to a 20% reduction in onboarding time, significantly contributing to our goal of improving client satisfaction.”

Provide real-time and frequent recognition 

Today’s employees thrive on in-the-moment feedback that reinforces positive behaviors and accomplishments. Recognition should be frequent and timely to ensure that employees know the significance of their achievements and how their efforts reinforce company values. 

Recognition delivered promptly after an achievement or positive behavior has a stronger impact than delayed praise. According to a recent study by Canva, among highly satisfied employees, nearly three-quarters (71%) are recognized at least a few times a month.

Consistent acknowledgment, both formal and informal, helps employees feel valued and keeps them engaged with their work. Encourage regular check-ins and actively look for opportunities to provide meaningful and consistent recognition to employees or teams. 

Foster peer-based recognition to boost team morale 

While not everyone desires the spotlight, nuanced public acknowledgment can boost morale and foster a culture of appreciation. Recognition from peers who understand each other’s day-to-day efforts can be particularly meaningful and authentic.

Today’s employees value recognition and rewards that are sincere, specific, and aligned with their personal and professional growth, as well as the broader purpose of their work. Peer recognition is an opportunity to strengthen connections and cohere teams. Everyone wants to feel seen, understood, and appreciated for their unique contributions.

Appreciation can show up in investments in employees’ futures. Opportunities for skill development, mentorship, new challenges, and career advancement recognize an employee’s potential and desire for growth. Pair team members with a senior leader for mentorship or provide access to an external coach. Personalized investments in development show you value employees’ long-term career aspirations.

Being entrusted with new responsibilities and provided with resources for professional growth can be powerful forms of recognition. Many organizations are expanding their total rewards strategy to include professional development reimbursements—covering costs for certifications, continuing education, or industry events that align with the employee’s goals and role. 

Expanding recognition through a purpose-driven marketplace

A meaningful recognition experience doesn’t end with the gesture itself–it continues through the rewards employees receive. One way organizations are elevating appreciation is by offering a wide range of impactful, personalized reward options. 

Personalized rewards are key to demonstrating that you pay attention to your employees’ wants and needs. Espresa’s global, no-markup marketplace is designed with that in mind, giving employees the ability to choose what matters most to them–whether it’s a charitable donation, branded company swag, wellness perks, travel opportunities, or something for everyday life. Research shows that recognition programs with diverse redemption options–across languages, currencies, and lifestyle interests–create inclusive, meaningful experiences. These employee recognition experiences are crucially important in globally distributed and multigenerational teams.

Level up recognition with LSAs

Surveys found that 40% of Espresa clients enhance well-being by integrating Lifestyle Spending Accounts with Recognition Programs, tying total well-being directly to appreciation. A unified approach to rewards that incorporates recognition, wellness, and development guarantees  every incentive serves a purpose and aligns with company values.

By ensuring that 100% of recognition points go toward rewards, organizations not only empower their teams but also build trust through transparency. At Espresa, we know that every recognition moment delivers real, personal impact. A  recognition-based culture paired with purpose driven, personalized rewards ensures employees know they’re truly valued. Contact us today for a free demo!

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Alex Shubat

Alex Shubat is the co-founder and CEO of Espresa, based in Palo Alto, California.

More by Alex Shubat
 

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