New Survey Reports Employee Recognition as Business Critical, Key Productivity Booster

Employee Recognition Trends survey reveals that recognition drives results: 90% of organizations now track rewards and recognition program outcomes, and 67% see productivity gains.
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CALGARY, AB — October 15, 2025 — A shift is underway in how organizations view recognition, according to new independent research by Kudos®, in partnership with Sago and TSC, which surveyed people managers and HR leaders. 

The Employee Recognition Trends survey finds the majority of organizations are putting recognition under the same ROI lens as other strategic initiatives, with 90% now tracking outcomes of their recognition programs, and nearly 40% running ROI analyses to directly link culture investments to productivity, retention, and profitability.

The payoff is clear, with 84% of organizations reporting stronger employee engagement after implementing recognition platforms, and 67% reporting measurable gains in productivity.

Meanwhile, nearly two-thirds (64%) of managers and HR leaders say budget constraints limit their ability to recognize employees as often as they’d like.

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“Organizations today are under pressure to show measurable impact from every initiative, and recognition is no exception,” said Muni Boga, CEO, Kudos. “The survey data reinforces what we see every day—genuine recognition not only engages teams, but drives strategic outcomes and productivity. Recognition is about to go through a transformation, and this survey highlights the need for smarter tools that maximize impact and efficiency.”

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Kudos launches next-gen platform to power recognition 

Kudos, a leading employee recognition and rewards platform, has introduced a next-generation recognition platform to drive productivity, automation, and ROI. The platform empowers teams with flexible new tools that make recognition scalable, flexible, and impactful, while reducing administrative effort.

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“With the next generation of the Kudos platform, we’ve responded to client needs and market research, making it easier for leaders to amplify recognition across their organization," Boga added. “Through real-time rewards, engagement tracking, and automated insights, we’re helping companies drive productivity, retention, and ROI through a culture of appreciation that delivers results.”

Kudos platform now includes:

• New automated workflows to simplify administration.
• Smarter budget management tools ensure rewards programs are both effective and sustainable.

• Flexible points banks and options for non-monetary recognition, enabling organizations to maximize budget utilization.

• AI assistance to write and refine messages, keeping recognition inclusive and meaningful.

• Enhanced real-time insights that help leaders understand engagement.
• Comprehensive recognition toolset featuring smarter automated celebrations and eCards, challenge incentives, and more, making recognition easy to deliver.

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Additional survey findings: AI and automation in modern recognition 

Organizations are increasingly modernizing recognition with AI and automation:

• Two-thirds (67%) of managers and HR leaders are now using AI, specifically AI-assisted writing tools, in rewards and recognition to reduce manual effort.
• 69% of organizations use smart suggestions and 66% use scheduled recognition.
• HR leaders are more likely than people managers to embrace AI-powered recognition, with 73% of HR leaders valuing AI-assisted writing tools compared to 60% of people managers.

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Visit kudos.com to learn more about how Kudos has reimagined recognition. 

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About the survey

The Starr Conspiracy, in partnership with Sago and sponsored by Kudos, surveyed 332 managers and HR leaders from U.S. organizations with 500–4,999 employees, using a quota system to ensure a robust mix across company sizes and roles. Fieldwork was completed from September 10-15, 2025. All results are reported at a 95% confidence level with an overall margin of error of ±5.4 percentage points. Subgroup findings represent smaller samples, with proportionally larger margins of error. The sample is not weighted to reflect the full U.S. employer population, but is valid for insights among mid-sized to large organizations using rewards and recognition technology. Additional details about research design and the online survey instrument are available upon request.

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