Recognition Is a Recession Strategy
When the economy nosedives, most companies panic. They slash budgets, freeze hiring, and cancel the holiday party. Survival mode kicks in. But here’s what they often forget: People are still showing up. And they’re scared.
That’s where recognition comes in, not as fluff, but as a strategy.
It’s easy to cut perks. It’s harder to rebuild trust.
What is Recognition?
Recognition isn’t about handing out trophies or naming an “employee of the month.” It’s about saying, “I see you.” It’s about acknowledging the grit to keep showing up when your 401(k) is tanking and your neighbor just got laid off.
According to Gallup, employees receiving high-quality recognition are 45% less likely to leave their jobs over two years. Moreover, those who receive recognition that meets at least four of the five pillars of strategic recognition are nine times as likely to be engaged as employees whose recognition experiences do not fulfill any of the five pillars. And connection matters more than ever when your company is one round of layoffs away from becoming a case study.
Recognition reduces stress and boosts morale. It’s not just a feel-good move—it’s a well-being intervention. Workhuman’s research found that employees who receive regular, authentic recognition are up to 90% less likely to report being burned out at work “always” or “very often.” In other words, gratitude is medicine.
The Cost of Overlooking Recongtion
Do you know what’s expensive? Turnover, lost productivity, and quiet quitting that turns into loud quitting. Replacing a disengaged employee can cost up to 200% of their salary. You know what’s smart? Investing in the people who haven’t quit yet, according to research from OC Tanner.
Recognition isn’t free. Points, gifts, and platforms have a price tag, but it’s pennies compared to the cost of disengagement.
So, if you’re a leader—official or otherwise—don’t wait for HR to roll out a program. Start now. Look around. Say something true and kind to someone who deserves it.
Because recognition doesn’t just feel good or look nice on a social media profile. It delivers measurable returns.