Annual AWI Employee Engagement & Retention report reveals the massive economic toll of attrition and points to three critical levers to drive retention and loyalty

The Achievers Workforce Institute (AWI), the research arm of Achievers, the world’s most utilized recognition and reward software, today released the eighth edition of its annual Employee Engagement and Retention Report. This edition captures how employees and HR leaders around the world feel about the state of work, uncovering steps employers can take to strengthen culture in 2026 and beyond.

AWI’s study paints a bleak picture for the modern workplace. Only 25% of employees envision a long career with their current company, and 34% say they plan to get a new job in 2026. To put the potential impact of these job-hunting intentions in perspective: if 34% of the U.S. full-time workforce switches jobs next year, the cost of turnover, based on median salary and standard replacement ranges, is estimated between $1.3 trillion and $5.1 trillion. That range does not account for part-time workers in the U.S. and the additional 22% of employees who told AWI that they are considering a new job in 2026. Fortunately, AWI’s data also highlights three cultural pillars that can counter high attrition and reduce the broader drag of disengagement: managerial recognition, connection, and rewards.

“This year’s Engagement and Retention Report surveyed HR teams and employees around the world and found that, despite our many differences, we are united by a human need to feel known and valued,” said Emma Harvie, Global Head of Recognition and Rewards Insights at Achievers. “This need is met when we have peers and managers that we love working with, and we are acknowledged and rewarded for our unique contributions. Sadly, the massive surge in job hunting shows just how much these needs are being overlooked on a global scale.”

The problem with overlooking appreciation

AWI finds that just 25% of employees feel appreciated and engaged at work. Employers miss out on critical benefits when 75% of the global workforce gets overlooked, as employees who feel appreciated are 12 times more likely to find their work meaningful and 17 times more likely to see a long-term career at their company.

HR professionals fare slightly better in today’s workforce, with 34% feeling appreciated. However, that’s still two-thirds who don’t. Global HR teams have work to do in 2026 to improve their individual employee experiences and the people they support.

The report also points to a powerful way to strengthen appreciation and retain talent: building strong managers. Weekly recognition from managers makes employees 2.8 times more likely to feel connected to their organization. In contrast, among employees who don’t receive regular recognition from their manager, only 1% feel connected to their work, and they are more than twice as likely to leave their jobs in search of a better manager.

The case for rewarding work experiences

Employees who feel fairly paid are 2.5 times more likely to be engaged. That’s an important signal in a year when only 17% of employees say they feel fairly compensated. In 2026, organizations will need to revisit compensation strategies and ensure employees earn a living wage, because beyond meeting basic needs, fair pay communicates one thing clearly: employee value.

But paychecks aren’t the only thing HR leaders should pay attention to in their compensation and benefits packages. Reward marketplaces, which allow employees to redeem recognition points for meaningful experiences, donations, and products, also deliver measurable impact. Seventy-five percent (75%) of employees say that removing rewards like gift cards, swag, or redeemable points would influence their decision to leave. HR leaders who offer rewards marketplaces report that these systems shape behavior and strengthen belonging, retention, and engagement. Yet 42% of HR leaders say they either don’t have a rewards marketplace or restrict who can give points, underscoring that many organizations need to realign their rewards approach with today’s best practices.

The science behind work besties

Friends make work a better place to be, it’s science: the study finds employees who feel highly connected to their peers are three times more likely to see a long career at their company, 4.7 times more likely to be engaged, and 5.4 times more likely to feel a strong sense of belonging.

Sadly, these feelings are increasingly uncommon in 2025: just 21% of employees feel connected to their peers and only 19% feel connected to their managers. But for anyone hoping to find a work bestie next year, there’s hope. When asked what they want their HR tech investments to deliver next year, HR leaders’ top priority was strengthening relationships (25%), followed by empowering managers (23%), and driving productivity (21%).

“As HR leaders put the final touches on their 2026 budgets, this study offers an early read on where investment is moving,” said Hannah Yardley, Chief People and Culture Officer at Achievers. “In the midst of a broader cultural erosion, HR’s top priority is ensuring technology strengthens relationships rather than isolates people. Leaders are also evaluating how their tech stack can elevate manager effectiveness and unlock real productivity gains. What the data makes clear is that recognition, rewards, and connection remain the most powerful predictors of retention and performance, and managers are the linchpin for all three. The opportunity now is for HR to take a science-backed approach to prioritizing these factors, and for the C-suite to fully embrace the hard ROI behind the seemingly soft drivers of friendship, belonging, and appreciation.”

To learn how to build a culture that ensures every employee feels appreciated, engaged, and committed to their job, download AWI’s 2025 Engagement and Retention report here.

About The Study

Data in this report is based on a survey conducted in October 2025, completed by 2,500 employees and 1,500 HR professionals across the United States, Canada, the United Kingdom, France, Germany, Australia, Singapore, and Hong Kong. For more information about the 2025 Employee Engagement and Retention Report, click here.

About Achievers

Achievers recognition and reward software provides powerful tools to help business leaders shape employee behaviors and drive real business results. Visit us at www.achievers.com.

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