EMPLOYEE EXPERIENCE ell-recognised employees are 45 % less likely to leave organisations after two years according to research from Gallup and Workhuman. But just 22 % of employees surveyed strongly agreed they get the right amount of recognition for the work they do.
According to McKinsey, 41 % of HR professionals believe compensation and benefits are the top retention factor. However, 39 % of employees are prioritising job security and 33 % relationships with colleagues. This could create strategic misalignments, where CHROs over-invest in traditional rewards and under-invest in the social fabric of a business.
The impact of strategic recognition To build that social fabric, CHROs must move beyond transactional rewards and embrace what Gallup defines as“ strategic recognition”. According to the report, recognition is most impactful when it is built on five pillars: it must be fulfilling, authentic, personalised, equitable and embedded in the company culture.
The business case for getting it right is undeniable. Employees who receive recognition fulfilling at least four of these five pillars are nine times as likely to be engaged compared to those whose experiences fulfill none of the pillars. However, execution often falls flat.
For example, despite the importance of personalisation, the same report notes that just 11 % of employees say someone in their current workplace has actually asked them how they like to be recognised for their accomplishments.
Balancing capacity While connection and engagement are critical, employees are also feeling the strain of operational bloat. The Human Capital Trends Report 2025 by Deloitte says that a staggering 41 % of daily work is currently spent on non-value-added tasks. CHROs are uniquely positioned to help unlock worker capacity by rethinking how time is spent and how milestones are rewarded.
As automation and AI alleviate some of this organisational busywork, the focus must shift to human development. The World Economic Forum’ s( WEF) Future of Jobs Report 2025 found that providing effective reskilling and upskilling opportunities is viewed by 63 % of surveyed organisations as a highly promising business practice to increase overall talent availability. The report also indicates that 50 % of the workforce has completed training as part of their employers’ learning and development initiatives. Employers expect direct returns on these training investments: 77 % expect enhanced productivity, while 65 % anticipate improved talent retention.
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