Employee Recognition Needs a Rethink — and a Bigger Role in Total Rewards

When Damilola Abiola Akinduro, global head of benefits, well-being, and recognition at digital infrastructure company Equinix, asked a group of attendees during a session at the recent WorldatWork Total Rewards Conference how many of them would join an organization today in hopes of winning a long service award, no hands went up.

That less-than-enthusiastic response from attendees underscores not that service awards are obsolete or don’t have a place, but that such awards, on their own, are insufficient when it comes to making employees feel valued and appreciated.  

“I’m all for recognizing people for service, but that cannot be everything you provide, because [most employees] don’t want to stay in an organization for 10 years,” Akinduro said April 21 in San Antonio.

The rise of digital platforms in the early 2000s began to modernize employee recognition, yet many organizations still lag. Despite vendors offering sophisticated tools for decades, some companies continue to manage recognition programs manually, often using spreadsheets. 

That gap reflects a deeper workplace issue — that employee recognition is still widely treated as secondary. That’s a problem, she said, especially given high levels of employee dissatisfaction and stress. 

“If you see an organization that thinks recognition is just a cherry on top, check the culture. There’s likely a level of toxicity there,” she said. “Employees really need to feel recognized.” 

Related Toolkit: Managing Employee Recognition Programs

New Resonance on Recognition 

Employee recognition has always been important, but it’s reaching new levels of resonance in light of soaring employee stress and anxiety, driven by recent economic uncertainty, layoff and AI anxiety, and shifting expectations. That makes employee recognition all the more important, Akinduro said, adding that recognition must be continuous, personalized, and meaningful in the present, not deferred for a decade.

“Some employees are really fighting emotionally,” she said. “How can we enable the workplace to accommodate people and let them bring themselves to work? Recognition is a powerful tool.”  

Related Specialty Credential: Total Rewards

A Core Pillar of Total Rewards 

Recognition is a key element of total rewards, Akinduro said, but it often receives far less attention than compensation or benefits. That imbalance is a missed opportunity.

When designed intentionally, recognition programs can reinforce company values, strengthen culture, and drive performance. But to gain leadership buy-in, HR must connect recognition directly to business outcomes — tying it to engagement data, retention risks, and organizational goals. 

“It’s our job to show that [an organization] needs to do this,” she said, urging HR professionals to be prepared to make their case for more and better employee recognition programs with numbers other company leaders need to see.

How to Improve Recognition 

To improve the current landscape of employee recognition, organizations might try adopting new approaches, Akinduro said. One idea is shifting away from traditional, manager-driven nomination models toward more participatory approaches. For instance, employees can nominate themselves or one another. There can also be peer voting to shortlist candidates for awards. 

Organizations can also roll out programs or partner with recognition platforms to make participation easier and harder to ignore. That way, automated nudges and reminders can be generated regularly so that recognition is continually on employees’ and managers’ minds. “That’s very important because people aren’t sitting around thinking about people they want to recognize,” she said. “Not because they don’t want to, but they have day jobs to think about.” 

One attendee of the session suggested extending recognition beyond the workplace by notifying employees’ family members when they receive awards, inviting them to contribute messages or videos. That can result in deeper emotional impact and stronger engagement, Akinduro said.

Another idea, she said, is to regularly create games and incentives in the workplace so that employers have specific, structured opportunities to recognize employees for their contributions, reinforce positive behaviors, and boost engagement through friendly competition and shared goals.  

All of this can pay off for employers in terms of better productivity, higher engagement, and lower employee stress.

“People want to be seen,” Akinduro said. “If you have a plan that makes them feel like, ‘We’ve got you,’ you will actually find that behavior starts to turn positive.”