While employers collectively invest billions into recognition and rewards programs, only about half of employees feel genuinely appreciated, says Brie Harvey, head of market research, for Achievers Workforce Institute.

So, what’s the disconnect between rewards programs and employee appreciation? And more importantly, how can organizations fix it? Harvey spoke on this during a thought leadership spotlight at From Day One’s Atlanta conference. 

Recognition isn’t just about throwing incentives at employees, Harvey says. It’s about making them feel seen, valued, and motivated. Without the right approach, recognition efforts can feel like empty gestures rather than genuine appreciation.

Praise vs. Recognition

Achievers Workforce Institute has spent two decades implementing over 600 recognition programs across some of the world’s largest organizations. Their research has led to a proven framework for what best-in-class programs do differently, which includes achieving the right balance—what they call the “Goldilocks zone” of recognition.

“If the people in your business don’t know how to recognize effectively, it doesn’t matter what tools or technology you have in place, you’re going to be like a salmon swimming upstream until everyone understands there’s a huge difference between praise and recognition,” she said. 

A key insight is that there’s a crucial difference between praise and recognition. Praise is often vague and fleeting, while effective recognition is specific and meaningful. Employees don’t just want to hear ‘good job,’ rather, they want to know what they did well and why it mattered. Studies from Harvard show the biggest motivator for employees is a sense of progress. Recognizing small wins along the way, not just big milestones, can have a powerful impact on engagement and productivity.

“Once people realize how intoxicating it feels to make someone’s day, what ends up happening is leaders get much more visibility into the actual work being done, which presents all these opportunities to offer positive reinforcement of the exact behaviors they want to see more of,” Harvey said.

Best Practices for Recognition Success

Harvey highlighted three essential traits of an effective recognition program:

First is frequent and specific recognition. Research indicates that organizations should aim for at least one recognition per employee per month, with some top-performing companies exceeding this benchmark. Meijer, for example, averages over seven recognitions per employee per month, not because of a massive rewards budget, but because of strong recognition habits embedded in the culture.

Next, she cites the importance of peer-to-peer and non-monetary recognition. Recognition shouldn't just come from leadership—it should involve colleagues acknowledging one another. Achievers’ research found that organizations that hit at least 50% peer-to-peer recognition see higher engagement levels. Non-monetary recognition also plays a crucial role; even a simple comment on a recognition post can have a lasting emotional impact.

Lastly, is the important low-dollar, high-frequency rewards. When monetary rewards are involved, they should complement recognition rather than drive it. The most effective programs use small but meaningful incentives, such as $5 or $10 bonuses, to amplify appreciation without creating a culture of entitlement. Features like Achievers’ “Boost” allow employees to contribute to existing recognitions, creating a powerful ripple effect of appreciation.

Real-World Impact of Recognition

The impact of well-executed recognition programs goes beyond employee satisfaction—it drives measurable business results. Harvey shared several case studies that demonstrated how recognition influences performance:

• DuPont saw a 68% increase in consecutive safe workdays after implementing a recognition program, saving them over a million dollars.
• Call centers in India reduced “quick quitting” (where employees leave for lunch and never return) by 14% through targeted recognition of learning milestones.
• Rogers Telecommunications ran a recognition-based campaign for customer service representatives, leading to a 90% increase in upsells and an 18-point boost in Net Promoter Score (NPS).

Beyond business metrics, Harvey shared deeply personal experiences highlighting the lasting emotional impact of meaningful recognition. One of her most memorable recognitions—a digital “love bomb” filled with thoughtful comments—left a lasting imprint on her. She used her recognition points for impactful life experiences, including her wedding expenses and a life-changing trip with her late husband.

“The authenticity and the frequency of recognition that transforms the employee experience provide meaning, but personalized rewards can really complement your efforts to make employees feel appreciated,” she said.

The Bottom Line

Traditional rewards programs often fail because they focus too much on monetary incentives and not enough on meaningful recognition. By prioritizing frequent, specific, and peer-driven appreciation, organizations can create a culture where employees feel valued, not just compensated.

Recognition isn’t just a nice-to-have, Harvey says, it’s a strategic necessity. Organizations that get it right don’t just retain employees, they create workplaces where people thrive. The right recognition strategy drives engagement, retention, and business success. Plus, employees don’t just remember it—they carry it with them for years to come.

Carrie Snider is a Phoenix-based journalist and marketing copywriter.

Editor’s note: From Day One thanks our partner, Achievers, for sponsoring this thought leadership spotlight. 

(Photos by Dustin Chambers for From Day One)