Blackhawk Network (BHN), the global branded payments leader, has officially published results from its latest research, which focused on analyzing the current state of employee engagement.
Revealing a record low in employee engagement, the stated research discovered that more than 87% of surveyed employees have concerns regarding their current employment, whereas on the other hand, 68% of employees reported feeling undervalued at work, highlighting a growing disconnect between employees and their employers.
To understand the significance of such a development, we must take into account how the year 2024 saw U.S. employee engagement hit an epic 11-year low. Now, while a large chunk of employees were found willing to remain in their roles due to a lack of alternatives, an estimated 7 in 10 employees said they are actively seeking new opportunities.
“Employees are the heart of any organization, and even in an employer-favorable market, showing employees they’re valued is important for long-term business health,” said Jeff Haughton, SVP of Incentives and Corporate Development & Strategy at BHN. “Strategic rewards and recognition programs boost loyalty, productivity, and retention. Yet, the research shows that fewer than half of companies offer rewards and recognition programs. When employees feel overlooked, that disconnect can lead to severed ties once the job market shifts in their favor—making it much harder for employers to rebuild trust and retain top talent.”
Talk about the given report on a slightly deeper level, we begin from how BHN found that recognition is the chief component to instigate loyalty and performance. We get to say so because an estimated 68% of employees reported feeling more loyal to their employer when rewarded for their contributions, with 66% saying timely recognition improves their focus on achieving goals.
Having said so, BHN’s separate Post-Holiday Research found that only 45% of employees received holiday recognition from their employers in 2024, marking a 5% decrease from the previous year.
Next up, the survey uncovered a link between loyalty and pay. You see, compensation and benefits remains the top factors employees consider when evaluating potential employers. A concrete lowdown translates to nearly 68% of respondents claiming that a higher salary would increase their loyalty to their employer,
Another detail worth a mention here is rooted in how pay was found to have a significant influence over RTO willingness. In essence, more than 61% employees indicated that a pay increase would make them more willing to work in a physical workspace, relaying the role of financial incentives in return-to-office (RTO) decisions.
Then, there is a piece of detail claiming that gift cards remain the most preferred reward type. This happens to be the case because 75% respondents said they want to receive gift cards for Employee Appreciation Day on March 7, 2025, reinforcing their appeal as a meaningful way to show recognition.
Out of that contingent, around 79% want physical gift cards, while 50% want digital options. Many of the employees were also open to either option.
Among other things, BHN’s exercise found that two-thirds (66%) of employees want to receive their rewards within one week of the achievement or milestone being recognized. In that respect, delays diminish the impact, with a third of employees saying a reward loses value if given more than one week later, and 25% reporting it loses value even within one week.
We must also mention touch upon those 17% of employees who want more opportunities to grow professionally, highlighting the demand for upskilling initiatives that help HR teams develop existing talent.
Finally, our last highlight stems from how shifting workforce demographics are reshaping recognition expectations, as Millennials and Gen Z are projected to make up over half of the workforce in 2025.
“Investing in rewards and recognition programs can deliver measurable returns by improving employee engagement, productivity, and retention while reducing the high costs of attrition,” said Haughton. “When employees feel valued for their contributions, they are more motivated and focused on achieving their goals. This is especially important as Gen Z enters the workforce in greater numbers. Companies that invest in recognition programs aligned with these next-generations needs are investing in their future success.”
