On March 7, 2025, we celebrate Employee Appreciation Day, but not all workers feel celebrated.

Understanding Employee Recognition Deficiencies Across Industries

As we recognize Employee Appreciation Day, it’s crucial to highlight that not all workplaces acknowledge their employees equally. A report by the Achievers Workforce Institute (AWI) identifies four global industries consistently ranked lowest in employee recognition: health and medicine, retail, hospitality and tourism, transportation, and manufacturing.

Impact of Employee Recognition

Significant insights from the AWI analysis reveal that regular acknowledgment in the workplace profoundly influences both employee satisfaction and organizational outcomes. Workers who receive recognition at least monthly report 2.5 times higher feelings of belonging and demonstrate double the engagement and productivity levels. However, in the most overlooked sectors, fewer than 50% of employees experience this form of recognition monthly. This lack of acknowledgment significantly hampers these industries’ ability to attract and retain talent.

Despite 89% of North American organizations boasting some form of employee recognition program, a staggering 39% of workers still report feeling undervalued. This indicates an existing gap that, often, can be bridged without exorbitant spending.

Industries with the Greatest Recognition Challenges

1. Health & Medicine

Employees in health and medicine face the highest rates of under-recognition, with 58% feeling overlooked, and 56% reporting they do not receive bonuses. Moreover, a significant 40% claim they never experience any form of acknowledgment.

2. Retail, Hospitality, and Tourism

In the retail, hospitality, and tourism sector, 54% of employees feel under-recognized. Notably, these workers are 37% more likely to report that they receive no recognition at all. The lack of managerial acknowledgment is also evident, with employees in this sector being 33% less likely to report meaningful recognition from their supervisors.

3. Transportation

Approximately 50% of workers in transportation experience under-recognition. This sector also exhibits low trust levels, with transportation employees being 42% less likely to feel appreciated by their managers and 38% less likely to trust them. Overall, 38% report feeling unrecognized in their workplaces.

4. Manufacturing

Over 55% of individuals in the manufacturing industry report a lack of recognition. While these workers are 23% more likely than average to receive an annual bonus, monetary incentives are insufficient to compensate for the absence of emotional acknowledgment. Research shows that 65% of employees prefer non-monetary recognition methods.

Guidance on Implementing Recognition Practices

While establishing formal recognition programs requires careful planning and time, such initiatives are known to foster a better work culture, improve employee performance, and enhance retention. However, organizations do not need to wait for formal programs to express gratitude.

Here are some straightforward methods to initiate employee recognition:

• Handwritten Thank-You Notes: Personal notes convey a heartfelt acknowledgment and serve as a memento of appreciation.
• Public Praise: Recognition in meetings or internal communications can amplify feelings of value and appreciation among employees.
• Additional Time Off: Offering perks like half-day Fridays or extra PTO can greatly enhance job satisfaction.
• Volunteer Time Off: Allowing employees to volunteer promotes goodwill and personal satisfaction.
• Flexible Gift Cards: Providing gift cards that employees can choose themselves imparts a sense of respect for individual preferences.

Fostering a Culture of Gratitude

While recognition from executives is often the most impactful, daily acknowledgments from peers and managers significantly shape an employee’s workplace experience. Every individual has the potential to enhance a culture of appreciation, making the work environment more enjoyable.

As individuals spend an average of 90,000 hours in the workplace throughout their careers, fostering recognition habits can lead to more fulfilling experiences for everyone involved.