New Research Reveals Critical Gaps and Opportunities in Employee Rewards and Recognition Programs

The HR Research Institute's latest publication, HR.com's State of Rewards and Recognition 2025, provides comprehensive analysis of how organizational rewards and recognition programs deliver substantial benefits while facing persistent implementation challenges. The research demonstrates that effective R&R programs help employees feel valued, enhance the overall employee experience, improve employee attitudes and behaviors, boost employee well-being, and increase individual and organizational performance.

Despite these proven advantages, the study identifies five major barriers preventing organizations from achieving optimal results: lack of measurable performance goals tied to recognition, insufficient managerial training on R&R best practices, inconsistent application of programs across the organization, lack of transparency in recognition implementation, and poor communication with limited visibility of initiatives. These findings underscore the critical need for systematic approaches to employee recognition programs.

The research reveals striking differences between high-performing and lagging organizations, with successful companies being 13 times more likely to use charitable donations as popular rewards, over 6 times more likely to measure R&R impact through employee performance metrics, and nearly 6 times more likely to review program effectiveness quarterly or semi-annually. This data-driven approach highlights the importance of continuous evaluation and improvement in recognition strategies.

Technology emerges as a crucial enabler for advancing R&R programs, with 59% of surveyed organizations planning to enhance tracking and reporting capabilities and another 59% intending to utilize analytics for deeper insights into recognition effectiveness. The integration of artificial intelligence represents a significant advancement, with organizations anticipating AI applications for personalized recognition at scale (54%), improved alignment of candidate and employer values (49%), and performance trend tracking for more timely recognition (47%).

According to Debbie McGrath, Chief Instigator and CEO at HR.com, HR teams face substantial challenges in making employee appreciation programs consistent, impactful, and scalable. The research indicates that improving the employee experience will likely require smarter tools, including automation and AI, to make recognition efforts more effective and sustainable. Additional resources, including the research webcast presentation What's Working and What's Not in Rewards and Recognition 2025, are available through HR.com's research platform for ongoing professional development.