The Future of Work is Built on Relationships

Early in my career, I believed that business success was all about what you know—the expertise you bring, the strategies you develop, and the problems you solve. And for a long time, that was true. Companies gained a competitive edge by harnessing knowledge, driving innovation, and optimizing for efficiency.

But over the years, I’ve seen a shift. The best ideas don’t succeed in isolation. The most effective teams aren’t just the smartest—they’re the most connected. A company’s ability to thrive isn’t just about knowledge anymore; it’s about the strength of relationships. We’ve entered the relationship economy, where the strength of human connections defines high performance.

In 2024, companies faced unprecedented challenges. Distributed teams became common, workforce expectations evolved, and AI accelerated change. Amid these transformations, I saw one glaring truth: the most successful organizations are the ones that foster strong relationships. Recognition is the bridge that strengthens these bonds, and in the relationship economy, connection is the new currency.

That’s why we created the 2025 State of Recognition Report—to better understand how recognition drives connection, and ultimately, business success. This report is built on insights from our customers, industry analysts, market data, and millions of Bonusly users. And just as we advocate for the power of relationships, we leaned into our own community to uncover the trends shaping the modern workplace.

Learning together: what we discovered

At Bonusly, we work alongside thousands of organizations to help them build thriving workplace cultures. But we don’t have all the answers—and that’s the point. Every leader, no matter their industry, is navigating this brave new work of relationship economy with the same challenge: how to create an environment where people feel valued, engaged, and empowered to do their best work.

The findings in this year’s report highlight both the urgency of this challenge and the opportunity that recognition presents:

• Employee disengagement is at an all-time high
• Disconnected employees are significantly more likely to leave
• Recognition is a proven catalyst for connection
• Companies that excel in recognition outperform their peers

Why this matters: recognition fuels performance

It’s easy to view outcomes like motivation, engagement, and retention as separate goals, but the reality is they are all means to a greater end: company performance. Every business leader wants to build a high-performing organization. And time and again, the data proves that employees who feel connected, recognized, and valued are the ones who perform at their best.

“Any tools or platforms that are helping to build up the humans and emphasize their strengths will ultimately create more value than those that simply automate or pass data back and forth.” - Ben Eubanks, Chief Research Officer, Lighthouse Research & Advisory 

Recognition is not just about appreciation. When it’s done right, recognition drives actions and serves as a multiplier of stellar behavior or attitude. One moment of recognition extends far beyond that initial praise. It inspires excellence, and more of it, for both the recipient and their peers.

I’ve seen this firsthand: when one person feels valued and engaged, their energy and enthusiasm create an engagement contagion that spreads throughout the organization.

Shaping the future, together

The shift to a relationship economy presents both a challenge and an opportunity. Companies that embrace recognition as a fundamental driver of connection, performance, and success, will shape the future of work.

At Bonusly, we are proud to pioneer this movement—not just as a platform, but as partners in helping organizations bring out the best in every employee. The insights in this report are a testament to the power of recognition, and we’re excited to share them with you.

I invite you to explore the full 2025 State of Recognition Report and join us in building workplaces where people and performance thrive, together.