Nine in ten firms now measure outcomes of recognition schemes

New research indicates that 90% of organisations now track the outcomes of their employee recognition programmes, reflecting a move towards more measurable workplace technology.

The Employee Recognition Trends survey, conducted by Kudos in partnership with Sago and TSC, gathered insights from people managers and HR leaders to explore the evolving role of recognition in organisational strategy. The results show most organisations now approach recognition with the same emphasis on measurable returns as other major initiatives, linking culture investments directly to productivity, retention, and profitability.

According to the survey, 84% of organisations reported stronger employee engagement following the introduction of recognition platforms, while 67% observed tangible productivity improvements attributed to these programmes.

Despite the widespread adoption of recognition tools, almost two-thirds (64%) of managers and HR leaders indicated that budget constraints continue to limit their ability to recognise employees as frequently as desired.

Recognition under scrutiny

Organisations are placing greater emphasis on quantifying the impact of recognition efforts. The survey found that nearly four in ten organisations conduct full return on investment (ROI) analyses to explicitly link recognition initiatives to business results.

"Organisations today are under pressure to show measurable impact from every initiative, and recognition is no exception," said Muni Boga, Chief Executive Officer at 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."

The rising demand for evidence-based outcomes has prompted companies to introduce new solutions aimed at making recognition more measurable, automated, and aligned with broader business objectives.

New platform launch

Kudos has responded to these industry trends with the introduction of a next-generation recognition platform designed to automate processes, increase flexibility, and provide deeper insights. The new system includes a comprehensive suite of features intended to reduce administrative workload and enhance the effectiveness of recognition programmes.

"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."

The upgraded platform now includes automated workflows, budget management tools, flexible points banks for non-monetary recognition, and AI-powered message writing support to promote inclusivity. Additional features encompass real-time analytics, automated celebrations, eCards, and challenge incentives.

Artificial intelligence and automation

The survey highlights the increasing role of artificial intelligence and automation in modern recognition practices. Among the organisations surveyed, two-thirds (67%) of managers and HR leaders have adopted AI-powered writing tools within their rewards and recognition workflows to minimise manual effort. Scheduled recognition and smart suggestions are also popular, used by 66% and 69% of organisations, respectively.

The study found that HR leaders are more likely to view AI-supported recognition tools as valuable, with 73% expressing a positive view compared to 60% of people managers.

Survey methodology

The survey, led by The Starr Conspiracy and Sago and sponsored by Kudos, canvassed 332 managers and HR leaders from United States-based organisations with 500 to 4,999 employees. A quota system was used to ensure a mix of company sizes and roles, and results are reported within a margin of error of ±5.4 percentage points. The findings capture current practices among mid-sized to large organisations that use rewards and recognition technology.

The results demonstrate a clear trend toward quantifiable outcomes and increased automation in the field of employee recognition, as organisations continue to search for effective methods to engage employees and link recognition to business outcomes.