HR Recognition Survey: 80% Satisfied With Programs Despite Measurement Questions

A survey of human resources management finds high levels of satisfaction with rewards and recognition programs, even though less than half of respondents report formal measurement and impact evaluation.

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Eighty percent of human resources professionals say their organizations’ rewards programs and capabilities are effective to a high or very high degree, and 72% say the same about recognition. On the other hand, less than half (47%) say rewards and recognition programs and processes in their organizations are based on formal structured systems, programs and policies. Moreover, combined, the CEO and CFO together are said to be the decision makers at 26% of companies, versus 29% for CHROs.

These are among the many insights and recommendations included in this recent HR.com “State of Rewards and Recognition 2025” survey, conducted from January through March 2025. It is based on 563 usable responses from human resources professionals across most industry verticals, the publication says. Most responses come from North America, primarily the US, with some from other countries as well. Ninety-six percent of respondents represent mid-sized or large organizations.

Among the biggest challenges faced by respondents:

Lack of measurable performance goals
Lack of managerial training on best practices
Inconsistent application of rewards and recognition

Among the most common evaluation metrics used:

Employee surveys (78%)
Observing improved employee confidence and/or enthusiasm at work (58%)
Observing trends in employee participation rates (53%)
Examining the impact of rewards and metrics on employee performance metrics (50%).

The survey also finds that:

At least two-thirds of respondents tie rewards and recognition initiatives to a high or very high extent to recognize tenure, performance, values, milestones: personal and/or professional.
CHROs are most likely to be responsible for approving (29%) and implementing (27%) rewards and recognition initiatives. However, one in five say the heads of departments are most responsible.
Rewards and recognition nominations are mostly made by the managers (73%), followed by peer nominations (55%), and customer nominations (47%).
Only one in three say rewards and recognition solutions boost trust between employees and managers.

Reasons for running rewards and recognition programs:

Helps employees feel valued (53%)
Enhances employee experience (48%)
Improves employee attitudes and behaviors (45%)
Improves employee well-being (44%)
Increases performance (43%)

When it comes to technological advancements, over half say they improve the ease of rewards and recognition tracking and reporting (59%) and the same proportion say it allows for better insights through analytics.

They say that AI is poised to improve R&R initiatives by:

Personalizing recognition (54%)
Comparing candidate values with those of potential employers (49%)
Tracking performance (47%)

General recommendations from the report include:

Offer reward points to give employees flexibility in choosing rewards, utilizing an easy-to-use platform to streamline point accumulation and redemption.
Provide experience-based rewards such as event tickets to create memorable and engaging recognition opportunities. Survey employees to understand preferred experiences.
Balance traditional rewards like company swag with more personalized options to cater to diverse preferences. Allow employees to select from a catalog of branded and non-branded items.
Incorporate donation-based rewards for employees who value giving back to the community. Partner with charities to provide seamless donation options.

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