Research Highlights Recognition Market Trends
TSC Sees Growth, Consolidation, Need for Differentiation in Recognition Market
Reward Gateway Australia Report: Mental and Financial Wellbring, Rewards and Recognition Are Top Priorities
Bonusly Report: Workplace Relations Are Critical to Company Performance
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This TSC market report outlines the state of the recognition marketplace....Reward Gateway survey highlights human resources (HR) priorities in Australia...Bonusly State of the Workplace report highlights role of relationships in business.
TSC Sees Growth, Consolidation, Need for Differentiation in Recognition Market
TSC, formerly The Starr Conspiracy, predicts in its latest market report that the rise of APIs (Application Programming Interfaces) and AI, anticipated consolidation of key players, and global expansion will highlight the latest market trends.
Note: The report makes no mention of trends identified by the Enterprise Engagement Alliance: the rise of human capital analytics and the opportunity to apply more rigorous program design and measurement to technology deployments, nor of the opportunity to provide professional services support to help clients produce more tangible results.
The TSC report estimates the global market size for employee recognition and rewards at $6.9 billion. The category is expected to see compounded annual growth of 6-8% from 2025-27, with software fees and reward commissions projected to grow at 2-3%. Large companies remain the majority of the market opportunity, it says, but mid-market and SMB (small- to medium business) segments are growing as well.
The report asks what it calls a “burning” question: “Can industry vendors rise above a sea of sameness in brand? There is more noise than ever in industry marketing, and it is getting more difficult for even close industry watchers like us to see what’s unique about any given brand. How are less-informed buyers supposed to tell what’s different?”
The report also covers an analysis of leading brands, pricing and choice models, cybersecurity, AI, and vendor switching tendencies.
Reward Gateway Australia Report: Mental and Financial Wellbring, Rewards and Recognition Are Top Priorities
Based on a survey of 500 human resources executives and about 1,000 employees in Australia, the Reward Gateway Workplace Engagement Index saw a small decline in the past year in employee engagement.
“Our research has found that mental wellbeing (73%), reward and recognition from managers (60%), and financial wellbeing (59%) are the top priorities for HR managers – and for good reason. If they don’t prioritize wellbeing initiatives, they run the risk of losing almost 60% of their workforce as a result of being overworked, salary gaps, and lack of recognition,” according to the report.
“Employee needs and expectations are shifting as they seek a better work-life balance and more personal fulfilment in their roles. Employees today are demanding a greater sense of purpose and connection, more recognition and better wellbeing support from their employer as they shape what is being seen as the ‘Year of the Self’. This is where building a culture of appreciation becomes essential to help unlock employee potential and give companies a new competitive advantage.”
According to the report, “Frontline employees, who often have fewer opportunities to engage with colleagues, reported a stronger sense of connection and belonging (5.8) compared to 2024 (5.3). This suggests that, despite the challenges of their roles, these employees may derive greater fulfillment in their work environments, possibly due to their direct interaction with customers or their integral role in essential services.”
Bonusly Report: Workplace Relations Are Critical to Company Performance
Workplace relationships are critical to company performance the age of distributor work and artificial intelligence, according to the Bonusly 2025 State of Recognition Report.
Bonusly is a Boulder, CO-based recognition technology firm.
Based on an analysis of recognition market research and an analysis of trends among the users of the company’s technology, the report “reveals significant shifts in workplace relationships and the strategic role employee recognition plays."
Connection across boundaries: Employees want modern ways to connect and engage with colleagues outside their direct team. "Recognition rates have more than doubled since 2020, with 40% of recognition occurring across locations and 60% spanning departments, effectively breaking down regional and organizational silos.”
Engaging the disengaged: “While a majority of today's workforce reports never receiving recognition, user data illustrates how the frequency of recognition increases to once per week when teams have access to effective recognition platforms.”
Human-centric skills in the AI era: ”As artificial intelligence automates routine tasks, uniquely human skills like collaboration and communication are increasingly valued, with recognition playing a pivotal role in reinforcing these essential workplace values.”
"We've entered into a relationship economy where the strength of human connections defines high performance," says Charles Hough, CEO, Bonusly. "The most successful organizations are the ones that foster strong relationships. Recognition is the bridge that strengthens these bonds, and in the relationship economy, connection is the new currency. The companies that embrace recognition as a fundamental driver of connection, performance, and success will shape the future of work."
Enterprise Engagement Alliance Services
Celebrating our 15th year, the Enterprise Engagement Alliance helps organizations enhance performance through:
1. Information and marketing opportunities on stakeholder management and total rewards:
ESM Weekly on stakeholder management since 2009; click here for a media kit.
RRN Weekly on total rewards since 1996; click here for a EEA YouTube channel on enterprise engagement, human capital, and total rewards insights and how-to information since 2020.
2. Learning: Purpose Leadership and Stakeholder
Management Academy to enhance future equity value and performance for your organization.3. Books on implementation: Enterprise Engagement for CEOs and Enterprise Engagement: The Roadmap.
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5. Permission-based targeted business development to identify and build relationships with the people most likely to buy.
6. Public speaking and meeting facilitation on stakeholder management. The world’s leading speakers on all aspects of stakeholder management across the enterprise.
