In an era increasingly shaped by artificial intelligence (AI), the pursuit of efficiency often dominates corporate objectives. However, this relentless drive can inadvertently sideline crucial human elements like creativity, wonder, and experimentation – the very strengths that foster engagement and drive innovation. A new report, “The State of Employee Recognition 2025” by O.C. Tanner, highlights this paradox, revealing that an over-investment in efficiency often equates to an under-investment in people, leading to transactional workplaces that fail to inspire.
The report, based on a survey of 2,815 employees across the United States, Canada, Australia, India, and the United Kingdom, alongside focus groups with employees, leaders, and HR professionals, delves into what truly makes recognition meaningful in an AI-saturated world. Its findings offer critical insights for HR leaders navigating the balance between technological advancement and authentic human connection.
The State of Recognition Today
Employee recognition is a customary, though not universal, workplace experience, with 58% of employees having received recognition in the last 30 days. While digital platforms are widely used for recognition, with 61% of recognition moments involving such tools , the report emphatically states that the popularity of digital experiences “doesn’t nullify or replace the human element”. In fact, 42% of employee recognition still includes an in-person interaction with physical thank-you cards, notes, or symbolic awards.
Crucially, meaningful recognition connects employee contributions to other people – their colleagues, leaders, and customers. As AI appears poised to fundamentally alter job roles, employees are actively seeking out human relationships and are increasingly wary of inauthentic recognition. When recognition is truly meaningful, employees are twice as likely to be eNPS Promoters and twice as likely to want to stay with their organisations for at least another year. Conversely, a lack of meaningful recognition can lead to increased attrition, disengagement, and even mental health issues.
The Power of Personalisation and Symbolism
The report strongly advocates for authenticity, personalisation, and symbolic storytelling as the key ingredients for meaningful recognition. These elements are inherently human and require nurturing.
Symbolic awards, which are physical awards carrying extra significance and connecting an employee’s work to a larger company story, have a demonstrated impact on performance, engagement, retention, wellbeing, belonging, and absenteeism. While 74% of employees say recognition is crucial for workplace community and belonging , less than half (45%) say symbolic awards are common, and only 52% have ever received one.
The distinction between generic and custom awards is particularly telling. While generic awards (e.g., an “Employee of the Month” certificate) offer some value, increasing the likelihood of producing great work by 3x and engagement by 2x, custom awards have significantly more impact. These awards reflect an organisation’s brand, values, and history and can even include funny employee awards if they genuinely resonate with the individual and company culture. Employees who receive a custom award are 5x more likely to produce great work and 4x more likely to be engaged. Critically, the odds of employees feeling burnt out decrease by 64% when they receive custom awards. This profound impact stems from custom awards’ ability to illustrate the employee’s journey in a personalised, memorable way, reflecting both their personal identity and the organisation’s identity.
Personalisation goes beyond merely engraving a name. It’s about making the individual feel seen for their unique contribution. While 54% of employees with formal recognition programmes still believe recognition can be an “empty gesture” , a personalised custom award has a 24x higher impact on meaningfulness compared to a generic award. Leaders play a crucial role, with an 8x increase in meaningfulness when the award conveys their leader truly knows them.
AI and the Future of Appreciation
The report acknowledges that 70% of employees believe technology is important for recognition programme success. However, there’s ambivalence about AI’s role: while 55% believe AI can improve the recognition experience and nearly 60% think it can help craft better messages , 63% fear that AI will make recognition less personal. This highlights a core tension: the more automated systems become, the more employees desire to feel seen by other humans.
Employees are not opposed to technology in recognition, with 80% saying their organisations use it, and 45% even using AI to help write messages. The key is appropriate and responsible use. AI should serve the human side of recognition; for instance, an AI-powered coach can refine a message while preserving the giver’s authentic voice and intent. In organisations with thriving cultures, employees are more likely to view AI positively in recognition contexts.
The future of recognition, the report concludes, will be a balanced blend of both technology and in-person experiences. When executed thoughtfully, this balance will result in recognition that is meaningful, personalised, and feels like a community celebration—in a word, human. For HR leaders, the directive is clear: embrace technology for efficiency, but always anchor recognition in authentic human connection and personalisation to truly make employees feel valued and reduce burnout.Sources