Recognition With Impact: Moving Past Symbolism to Strategic Value

In a recent closed-door roundtable held under Chatham House Rule, senior HR leaders from global organizations gathered with Workhuman’s Meisha-Ann Martin for a candid conversation about the challenges reshaping the modern workforce.

What emerged was a striking consensus: recognition that is strategic, skill-focused, and culturally embedded may be one of the most undervalued levers in preparing organizations for what’s next.

The Talent Challenge Beneath Every Business

Across sectors, leaders traced their biggest challenges back to one core theme: talent.

From supply chain disruption and geopolitical complexity to future growth strategies and AI transformation, organizations are grappling with where their people are now and where they need them to be. Internal development, talent acquisition, upskilling, and AI readiness formed an unmissable throughline.

Many organizations have launched enterprise-wide AI initiatives: foundational training for all employees, self-paced learning platforms, internal copilots, and secure sandbox environments. Yet, adoption is slow, and leaders at the table acknowledged they are in a “reassessment phase” where they’re determining what’s working, where the gaps are, and which skills require deeper investment.

But one insight resonated across the board: skills cannot, and will not, advance at scale without systems that recognize and reinforce them.

The Missing Reinforcement Loop

According to Workhuman and Gallup research, “Employees who strongly agree their organization encourages them to learn new skills are 8.4 times as likely to strongly agree that there is a path for them to grow in their organization, 47% less likely to be searching or watching for another job, and 4.2 times as likely to be engaged. However, many employers are not leveraging recognition to drive skill development, with only 14% of employees saying that learning a new skill is one of the most common reasons they are recognized.”

In other words, organizations talk about upskilling, but don’t always celebrate or spotlight it.

That lack of reinforcement for learning a new skill (when upskilling is so frequently cited as a core focus for HR and businesses in general) is more than a morale gap; it’s a strategic gap.

Leaders discussed the role recognition data can play in closing it. By analyzing recognition messages through NLP, organizations can infer skills that are being demonstrated and acknowledged across the workforce. This exposure often reveals misalignment between stated priorities and lived behaviors. Leadership skills were the most commonly recognized; learning and growth were among the least.

Communities of Practice and the Social Side of Learning

Many participants described how learning only accelerates when it becomes social. Communities of practice, especially those focused on AI, are proving powerful. They foster peer-to-peer learning, generate “good FOMO,” and showcase real-world, role-specific use cases.

One HR team even hosted an AI-focused hackathon within their community of practice. This not only surfaced innovation from unexpected corners of the business but also created a moment of high-impact recognition for employees who had grown their skills and applied them meaningfully.

When it comes to culture, leaders model the ceiling (or the limit).

Senior leaders who participate actively in recognition programs set the tone. Their visibility in internal channels creates positive reinforcement at scale. But there is often a disconnect: many leaders themselves feel under-recognized or unsure what “good” looks like.

One challenge raised was the CEO Award paradox: high-value awards can unintentionally devalue smaller acts of recognition, making employees feel “nothing is good enough.” Leaders stressed the need for balance, ensuring daily actions are appreciated while larger contributions receive proportionate, thoughtful acknowledgment.

Recognition as a Cultural Lever and a Diagnostic Tool, Not a Perk

A recurring theme was that recognition is not a program; it’s a habit. And in most organizations, that habit is underdeveloped.

The biggest barrier? People are stingy with recognition, especially when they believe it must come with a monetary reward. But leaders agreed: recognition does not need a gift attached. When the behavior is meaningful, the message itself has value.

To do ‘recognition’ well, follow these three rules:

1. Specificity matters: “Good job” doesn’t drive behavior change. Referencing the specific behavior and impact does.
2. Volume matters: One recognition per person per year is not a culture. Think about benchmarks like ‘two recognitions per employee, per month’, or ‘80% of employees giving and receiving recognition consistently’.
3. Inclusivity matters: Recognition shouldn’t be reserved for “above and beyond”. Everyday behaviors that fuel performance should also be celebrated.

Most organizations track basic recognition metrics such as usage, budgets, and engagement survey responses (“I feel recognized and valued”). But few measure behavior change, skill reinforcement, or leadership development outcomes.

Participants discussed emerging opportunities:

• Using recognition messages to infer skills and track progression.
• Correlating recognition frequency with engagement, performance, customer satisfaction or even safety outcomes.
• Identifying high-potential talent through patterns in recognition (both who receives and who gives).
• Understanding gaps between strategic priorities and cultural reality.

Leaders agreed: recognition data is an untapped asset for workforce decision-making.

The Business Case for Recognition Is Getting Stronger

Business performance starts with every individual. How we feel at work impacts our productivity, our output, and whether we step up or switch off, and as such, Roundtable participants noted that recognition is increasingly being linked to the metrics that drive boardroom decisions.

When recognition rises, engagement follows, and engagement correlates with nearly every meaningful business KPI.

In a striking conclusion, one senior leader noted that at a recent global leadership summit, every executive asked HR for the same thing in 2026: a robust employee recognition program.

Ironically, the company had once paused its program due to low usage. Now, leaders are demanding it back – not as a perk, but as a strategic necessity.