One in Four Employees Believes Workplace Recognition Depends on Who You Know, Not What You Achieve

How much do results actually matter when a company decides who gets rewarded and publicly recognised? According to new research from Perkbox, based on a sample of 4,000 UK employees and 1,000 UK HR leaders, for many workers the answer is far from reassuring. Nearly a quarter of employees (23%) believe rewards in their organisation are based on personal relationships with managers rather than actual contribution. Only 25% describe their reward systems as clear and structured, and just 39% say they truly understand the criteria behind these decisions.

The Gender Gap Shaping Perceptions of Fairness

One finding worth pausing on for anyone focused on organizational equity is the gap between men and women. Only 37% of women consider their organisation’s reward system fair and consistent, compared with 45% of men. That gap widens further when asked whether rewards are distributed fairly: 31% of women agree, against 39% of men. Women also report receiving consistent recognition from their manager less often, a pattern that risks reinforcing, over time, a sense of reduced professional visibility.

Why Uncertainty Hurts More Than a Missing Bonus

Tracey Paxton, psychotherapist and clinical director at Perkbox, explains that when employees don’t understand how decisions are made, they tend to perceive them as inconsistent, and once that doubt sets in, trust becomes hard to rebuild. This isn’t a minor detail. According to Paxton, an unclear reward system triggers a genuine sense of uncertainty that, over time, has a measurable impact on motivation and engagement. People start questioning what’s actually valued in the organisation, what’s expected of them, and where they stand.

Why This Directly Affects Retention

The data draws a clear line between perceived fairness and staying with an organisation. Nearly one in three employees (31%) say a lack of recognition would influence their decision to stay or leave. Among those who actually considered leaving over the past twelve months, 64% cite poor recognition as a contributing factor. For anyone working on talent management, the message is fairly direct: an opaque reward system isn’t just an internal climate issue, it’s a concrete driver of turnover risk.

The Often Underestimated Role of Line Managers

The data points to line managers as the real pivot point. 47% of employees say recognition from their manager is highly meaningful, yet only 29% say they receive it on a regular basis. Organisations themselves identify inconsistent manager behaviour as one of the biggest barriers to effective recognition. According to Paxton, recognising good work isn’t always instinctive, especially for managers already under pressure, which is why targeted training matters, not just on processes, but on the psychological role recognition plays in the relationship with people.

Building a Reward System That Actually Works

The research points to a clear direction for organisations serious about addressing this issue. Making the criteria behind rewards and recognition transparent, training managers on how and when to recognise achievements, and turning recognition into a standing item in team meetings rather than an occasional gesture. These steps take time and consistency, but according to the research, they make a concrete difference in motivation, trust, and the ability to retain top talent.