The HR.com Research Institute's latest study, 'HR.com's State of Rewards and Recognition 2025', reveals a stark contrast between the recognized benefits of rewards and recognition (R&R) programs and the obstacles organizations face in their implementation. Despite the potential of R&R programs to enhance employee experience, improve attitudes and behaviors, and boost both individual and organizational performance, many organizations struggle with issues such as lack of measurable performance goals, insufficient managerial training, and poor communication.
High-performing organizations, however, demonstrate a markedly different approach, leveraging innovative strategies like charitable donations as rewards and regular reviews of program effectiveness. These organizations are significantly more likely to measure the impact of their R&R initiatives through employee performance metrics, showcasing a data-driven approach to employee appreciation.
Technology emerges as a key enabler in the evolution of R&R strategies, with a majority of organizations planning to enhance tracking and reporting capabilities. Artificial intelligence, in particular, holds promise for personalizing recognition at scale and aligning employee and employer values, offering a pathway to more consistent and impactful programs.
Debbie McGrath, CEO at HR.com, underscores the importance of adopting smarter tools and strategies to address the current gaps in R&R programs. The study's findings highlight the urgent need for organizations to embrace technological advancements and data-driven approaches to create meaningful and scalable employee experiences, pointing to a future where R&R programs can fully realize their potential to transform workplace dynamics.
