The new research publication, HR.com’s State of Rewards and Recognition 2025 from the HR Research Institute, offers deep insights into the powerful impact — and ongoing challenges — of organizational rewards and recognition (R&R) programs.

The findings highlight that while R&R programs can deliver significant payoffs, organizations must overcome critical hurdles to achieve their goals.

According to the study, the top five benefits of effective R&R programs include:

• Helping employees feel valued

• Enhancing the overall employee experience

• Improving employee attitudes and behaviors

• Boosting employee well-being

• Increasing individual and organizational performance

Despite these substantial benefits, many organizations struggle to implement successful R&R strategies. The research identifies five major barriers:

• Lack of measurable performance goals tied to recognition

• Insufficient managerial training on R&R best practices

• Inconsistent application of R&R programs across the organization

• Lack of transparency in how recognition is implemented

• Poor communication and limited visibility of R&R initiatives

The differences between successful R&R programs and less effective efforts reveal that high-performing organizations are significantly more likely to regularly evaluate and enhance their R&R initiatives, with their HR professionals:

• 13X more likely to say donations to a charity are a popular reward

• over 6X more likely to measure the impact of R&R through employee performance metrics

• nearly 6X more likely than lagging organizations to review program effectiveness on a quarterly or semi-annual basis

These findings highlight the value of tracking data and metrics to measure success of these programs, but technology is also set to play a pivotal role in advancing rewards and recognition programs. More than half of surveyed organizations plan to enhance the ease of tracking and reporting R&R activities (59%) and utilize analytics to gain deeper insights into the effectiveness of their recognition efforts (59%).

Artificial intelligence is also emerging as a powerful tool for elevating R&R strategies. Organizations anticipate using AI to personalize recognition at scale (54%), align candidate and employer values more accurately (49%), and track performance trends to enable more timely and impactful recognition (47%).

“HR teams are facing real challenges when it comes to making employee appreciation programs consistent, impactful, and scalable,” said Debbie McGrath, Chief Instigator and CEO at HR.com. "This research shows that to really improve the employee experience, HR will likely need to lean into smarter tools—like automation and AI—that make recognition work better and last longer."

REPORT DOWNLOAD

The recording of the research webcast presentation, What's Working and What's Not in Rewards and Recognition 2025, is available for viewing 24/7 on demand.

About HR.com and the HR Research Institute

The HR Research Institute (HRRI) helps you keep your finger on the pulse of HR! Powered by HR.com, the world’s largest HR community, the HRRI identifies key trends and best practices to help more than 2 million HR professionals and their organizations make strategic decisions with informed and insightful research findings. Among the most productive and respected HR research institutes globally, the HRRI publishes dozens of high-quality reports every year across a wide array of HR topics. HR.com’s free membership offers many benefits, including access to over 250 exclusive primary research, state-of-the-industry reports, and infographics. These resources are published based on surveys developed with the assistance of a panel of thought leaders and industry experts on the advisory boards. Visit hr.com/hrresearchinstitute to maximize your HR potential.

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