For years, recognition has been viewed through the lens of rewards, bonuses, and compensation packages, but new research tells a different story.

In today’s dynamic workplace environment, cultivating a thriving culture extends beyond mere words. It requires embedding emotional connections and personalised recognition into the daily experiences of employees.

We know this because our latest study of over 3,000 respondents from UK businesses, spanning HR professionals, C-suite executives, and employees, The Heart of Workplace Engagement, revealed a significant gap between employee expectations and current recognition practices. While 81% of HR professionals agreed that emotional bonds foster a thriving work culture, less than half (42%) of employees felt they received consistent recognition from leadership. This gap signals a critical area for improvement.

Why emotional empathy matters

At its core, emotional empathy in leadership is about understanding and acknowledging the human experience. When employees feel emotionally connected to their leaders and peers, recognition becomes far more than a transactional exchange; it becomes a powerful motivator. The findings showed that 69% of employees believed it was important for leadership to emotionally connect with them, yet too many organisations still rely on outdated compensation strategies to foster engagement.

The truth is financial rewards alone are no longer enough to keep employees motivated. Modern workers seek purpose, personal growth, and, above all, recognition for their contributions. By embedding empathy into recognition practices, companies can elevate employee morale, resulting in higher retention and engagement levels.

Recognition through a cultural lens

Recognition helps employees feel seen, valued, and emotionally connected to the broader mission of the organisation. Yet, a staggering 77% of employees reported to us that they didn’t fully understand their company’s mission and values. This lack of connection hinders the effectiveness of recognition efforts, preventing them from resonating deeply with employees.

For HR professionals and business leaders, this is a wake-up call. Recognition cannot be a one-size-fits-all strategy, it needs to be personalised and aligned with the culture, values, and aspirations of the business. Employees who understand and embrace the company’s purpose are more likely to contribute meaningfully, go above and beyond, and stay loyal to the organisation.

The workplace culture is defined by a shared value and belief system, played out through common attitudes and behaviours. It is the DNA of an organisation and influences how employees behave, interact and perceive their working environment. Understanding and embracing this culture is paramount for cultivating a vibrant and dynamic workplace.

However, our research found that while 96% of HR professionals and a notable segment of the C-suite believed in the importance of employees embracing the company’s mission, purpose and values, just 23% of employees fully understood what these were. This stark disparity highlights a significant lack of emotional connection to the company’s culture and business. To truly understand and embrace a company culture, employees must emotionally connect and resonate with it. C-suite and HR leaders need to take proactive steps to bridge this critical gap.

The gap in understanding company culture presents a significant challenge for business leaders and HR professionals. The survey highlighted that three-fifths (60%) of employees emphasised the importance of personally understanding their company’s culture. Without this understanding, employees cannot fully appreciate, interact with, or embrace the core elements that drive their organisation. Consequently, this lack of understanding also affects their ability to recognise and value the relevance of the recognition they receive.

The top five strategies for improvement

By addressing the following areas, HR professionals and business leaders can unite to ensure that employees not only understand but also embody the company’s culture, driving a more cohesive and motivated workforce.

  1. Enhanced onboarding and training – Develop comprehensive onboarding programmes that emphasise the company’s culture by sharing its mission, purpose, and values. Continuous training sessions can reinforce these concepts and keep them top-of-mind for all employees.
  2. Regular and transparent communication – Implement regular updates and communications from the C-suite that articulate the company’s goals, achievements, and cultural values. This can be in the form of town halls, newsletters, or through benefit and employee engagement platforms.
  3. Engagement initiatives – Create initiatives that encourage employees to engage with and contribute to the company’s culture. This could include cultural ambassadors, feedback forums, and recognition programmes that highlight cultural alignment.
  4. Leadership training – Train leaders and managers at all levels on the importance of company culture and effective communication strategies. These individuals should be equipped to model the company’s values and inspire their teams to do the same.
  5. Feedback mechanisms – Establish robust feedback mechanisms where employees can share their understanding and experiences related to the company’s culture. Use this feedback to make necessary adjustments and improvements.

The future of recognition is empathy

By integrating empathy into recognition strategies and fostering a culture where employees emotionally resonate with the company’s goals, HR professionals and business leaders can drive engagement, productivity, and loyalty. This journey begins with aligning recognition with company culture, enhancing communication, and offering personalised, timely feedback.

Ultimately, the future of recognition lies in understanding the whole person and creating an environment where both professional and emotional needs are met. By doing so, companies can cultivate a vibrant and dynamic culture that supports long-term success, employee satisfaction, and a stronger, more connected workforce.

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Jo Werker is a leading expert in delivering deeply engaging customer experiences, underpinned by the latest technology advancements. She is passionate about creating engaging employee experiences that reward and recognise their efforts but also supports their employers to enjoy growth through employee satisfaction and loyalty.