How to achieve retention through recognition: Insights from the 2026 Engagement and Retention Reports

Today’s workforce isn’t just chasing a paycheck — they want purpose, connection, and appreciation. For HR leaders and executives, the question is clear: how do you keep people engaged and sticking around? The answer: recognition.

Globally, companies struggle with engagement dips and retention woes. Money matters, but people thrive on appreciation — and recognition drives performance. Across North America, EMEA, and APAC, employees who feel valued perform better.

The latest Engagement and Retention Reports from Achievers Workforce Institute (AWI) shows a workforce juggling uncertainty and disconnection. The silver lining? Recognition reshapes the employee experience. Businesses embedding meaningful appreciation into daily routines win at engagement, retention, and talent attraction.

From the U.S. to the UK and Hong Kong, recognition isn’t just a feel-good act — it’s a strategy that moves the needle. Let’s explore what the data reveals about employee perceptions, performance drivers, and trends shaping the future of work.

Bridging divides: Connection as an employee retention superpower

Amid hybrid teams, remote work, and constant change, talent alone isn’t enough. Employees need real connection — to their colleagues, managers, and mission. When that connection falters, engagement dips, productivity suffers, and retention risks skyrocket. Building bridges isn’t just nice; it’s business strategy.

Managers as connectors

Managers today aren’t just assigning work — they’re the heartbeat of employee experience. But AWI research shows many employees feel distant from their managers, impacting belonging, growth, and long-term commitment. Recognition changes the game. Frequent, meaningful shout-outs help managers turn routine check-ins into relationships built on trust, respect, and motivation.

Recognition is the glue that binds teams

Distributed work can feel isolating, but recognition bridges gaps. Peer-to-peer recognition, frequent kudos, and visible appreciation knit employees into a stronger, more engaged whole. Recognition isn’t fluff — it’s the engine that drives inclusion, belonging, and collaboration, turning scattered individuals into a united, motivated workforce.

From isolation to inclusion

Recognition turns lonely tasks into shared wins. Every acknowledgment reinforces value, celebrates teamwork, and aligns effort with company goals. Across regions, cultures, and time zones, the message is clear: connection matters. And when connection thrives, engagement and retention follow.

Beyond the paycheck: Rewards as an employee retention superpower

Money talks, but it’s not the whole story. Employees want recognition, fairness, and to feel their work truly matters. The secret to retention? Combining competitive pay with meaningful, frequent recognition.

Employee value is more than salary

Fair pay matters, but employees stay for a sense of holistic value — benefits, growth, work-life balance, and feeling appreciated. Recognition turns monetary rewards into a full-circle retention strategy.

Strategic rewards: Reward behavior, not just results

Top performers demonstrate teamwork, innovation, and company values. Programs that reward how work is done, not just outcomes, shape culture and encourage meaningful behaviors.

Localize, personalize, amplify

Global teams need recognition that resonates. Personal, culturally sensitive rewards signal that every contribution is seen and valued.

Compensation plus recognition = loyalty

Feeling appreciated reinforces fairness and boosts engagement, loyalty, and retention. Combine pay equity with frequent, meaningful recognition, and rewards become proof that employees are seen, heard, appreciated — a strategy that keeps top talent thriving.

How to make employee development a retention strategy

When employee development is supported, visible, and rewarded, employees stay — it’s that simple. Report findings confirm that employees crave continuous learning and want clear career paths. Without it, we see disengagement, stagnation, and turnover. Investing in growth isn’t optional — it’s a strategic retention lever.

Use recognition to accelerate growth

  • Recognizing learning, skill acquisition, and developmental efforts boosts retention
  • Immediate, specific recognition validates effort and reinforces ambition
  • Employees who are frequently recognized feel there’s more room to grow

Create a culture of continuous development

  • Embed learning into daily work through micro-modules, certifications, and flexible programs
  • Pair growth with mentorship and coaching to build confidence and commitment
  • Map clear, transparent career pathways to show employees a future in the company
  • Celebrate upskilling and reskilling through formal recognition or informal shout-outs

Link recognition to growth milestones

  • Recognition creates a virtuous cycle where employees grow, feel valued, and stay
  • Tools like Achievers integrate recognition and learning in real-time workflows
  • Growth becomes visible, actionable, and celebrated — not just aspirational

Stagnation undermines retention. Employees globally want skill development, new challenges, and career progression. AWI research shows employees are most engaged when actively learning and when employee perceive a lack of opportunities, they’re driven to “check out” or leave.

Managers play a major role in employee retention

Managers are the linchpin of the employee experience, directly influencing engagement, career growth, and job satisfaction. Report findings highlights that many employees still lack essential support and recognition from their managers, creating a critical retention juncture: empower managers or risk disengagement and turnover.

At the forefront of the employee experience

Managers translate strategy into daily action, guide growth, and shape team culture. Yet many fall short — irregular 1:1s, insufficient coaching, and limited support leave employees feeling undervalued. Employees often cite poor management as a reason to leave, while those supported with coaching and recognition are far more likely to stay.

Empowering managers with the right tools

Effective retention isn’t about doing more — it’s about equipping managers with recognition tools, leadership training, and guidance. AWI data shows frequent recognition improves coaching, support, and employee connection. Platforms like Achievers enable real-time recognition, making growth visible and building trust.

From coaching gaps to connection bridges

Recognition turns coaching gaps into opportunities. Regular acknowledgment fosters open communication, strengthens relationships, and reinforces growth. Integrating recognition into daily workflows transforms feedback into a continuous, supportive dialogue, enhancing engagement and retention.

Beyond the checklist: Belonging and balance as predictors of employee loyalty

Employees expect a workplace experience that goes beyond a salary — they want belonging, well-being, and balance. AWI data shows unmet needs in these areas drive disengagement and turnover.

Globally, only 26% report work–life balance and 21% feel a strong sense of belonging. In EMEA, those numbers are 25% and 20%, and in APAC, just 18% and 14%. Employees with balance are 2.5x more likely to see a long career and 2.5x less likely to job hunt, while those with belonging are 2x less likely to leave.

The human need for connection

Feeling a sense of belonging and balance satisfy fundamental human needs. When employees feel disconnected or unsupported, burnout rises, innovation declines, and engagement drops. Across regions, connection gaps are stark: only 21% of EMEA employees feel connected to their manager, and in APAC, just 15% report manager connection. Globally, employees with strong peer ties are 4.7x more likely to feel engaged and 3.3x more likely to find work meaningful. Closing these gaps is critical for retention.

Employee recognition: The ultimate belonging builder

Recognition is the fastest route to belonging. Globally, employees who feel appreciated are 54x more likely to feel belonging and 2.5x more likely to stay. Weekly recognition multiplies impact: 14.5x more likely to feel belonging in EMEA, 21x in APAC, and reduces job-hunting intent by 41% globally. Recognition bridges geographic divides, making every employee — onsite or remote — feel valued and included.

Designing cultures of inclusion and sustainability at work

Creating a sustainable company culture requires proactive design: deep listening, flexible work models, inclusive practices, and frequent recognition. Recognition frequency is the differentiator: weekly recognition makes employees 32.5x more likely to feel growth potential in APAC, 7x more likely to feel connected to their manager in EMEA, and 15x more likely to feel engaged globally. Achievers’ global platform enables consistent recognition, ensuring employees feel valued, supported, and motivated across regions.

The urgency to act: Addressing employee retention risks

Lately, the job market is feeling a bit like a revolving door — and no one is immune. A large number of employees are actively job hunting, while many more are sitting on the fence, unsure whether to stay or go.

But here’s the plot twist: HR professionals — the very people tasked with boosting engagement and retention — are even more likely to be looking or are undecided about whether today. When the keepers of culture are eyeing the exit, it’s a clear sign that something deeper needs attention.

Why are people leaving? The motivations are refreshingly straightforward:

  • Pay
  • Benefits
  • Flexibility
  • Work-life balance
  • Career growth
  • Culture

Overall, employees are chasing financial stability, while HR is craving a healthier, more supportive workplace.

These differences make one thing crystal clear: employee retention isn’t a single lever — it’s an ecosystem. Employees want a fair deal and a future they can grow into, and HR needs the flexibility and support to make that future sustainable. Organizations that strike this balance — competitive pay, real career paths, better flexibility, and recognition that actually feels meaningful — stand the best chance of turning all those “undecided” employees into truly committed ones.

Achieving employee retention through recognition

Recognition isn’t a nice-to-have — it’s a business imperative. 2026 Engagement and Retention Report data shows that appreciation, connection, growth, and supportive leadership are the pillars of retention, and recognition is the thread that ties them together. When recognition is frequent and meaningful, engagement rises, loyalty strengthens, and performance follows.

Are you investing enough in recognition to keep your best people? Achievers is here to help. Download all three reports to uncover regional benchmarks, actionable insights, and strategies that help leaders turn recognition into measurable impact.

Retention through recognition FAQs

Key insights

  • Recognition is a proven retention driver that boosts engagement, belonging, and loyalty across every region
  • Employees who receive frequent, meaningful recognition feel more valued, see more room for growth, and are far less likely to disengage or leave
  • Organizations that pair competitive compensation with consistent recognition, development opportunities, and supportive managers create the strongest buffer against today’s high turnover risks
Julia Donovan

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