A Few Words

For decades, the workplace existed in a knowledge economy, dominated by skills, innovation, and problem-solving. Reflecting on changes in the workplace I have observed in recent years, I firmly believe that we’re now entering a relationship economy, where the strength of human connections will be the defining markers of success.

In 2024, the modern workplace continued to evolve. Distributed teams became the norm. Companies navigated the complexities of intergenerational workforces. And AI’s rise further accelerated change, shifting the role of employees and pushing organizations to rethink how people work better.

As AI transforms the workforce by taking on routine tasks, the value of human-centric skills, like collaboration and communication, is the new competitive advantage. While AI can easily replace knowledge, it can never replicate the deep, meaningful connections that build community and drive peak performance in the workplace.

The days of workers competing for knowledge are behind us. Knowledge has become a commodity—available and accessible to all—and the rate of commoditization will only grow. What truly differentiates a workplace now is the ability to connect, collaborate, and build trusting relationships—the linchpins of company performance.

At Bonusly, we believe that people, working on teams, are the primary drivers of business success. And, now more than ever, your people need to feel deeply connected to their company and their colleagues to unlock high performance.

Recognition plays a vital role in building these connections. Helping employees feel seen, valued, and appreciated reinforces their sense of belonging and purpose. It bonds individuals to their teams, aligns them with the organization’s mission, and motivates them to perform at their best. Recognition transforms the workplace into a high-achieving community, not just a collection of disconnected and disengaged roles.

The stakes are high. As business leaders face the future of work, we must prioritize employee recognition and connection to unlock human potential. In this new relationship economy, organizations that tap into that infinite human potential will be the ones that win.

- Charles Hough, CEO, Bonusly

Today’s Workplace:
An Urgent Need for Relationships

Organizations face significant challenges:
their employees feel lonely, disconnected, and disengaged

The data paints a stark picture:

Engagement levels reached a 10-year low.

Some work segments are more affected than others.

Harvard Business Review calls this workplace loneliness an epidemic.⁸

This epidemic comes with significant costs, too.

Recognition is the
Catalyst for Connection

Effective employee recognition—timely, specific, and focused on behavioral change and measurable results—turns disconnected workplaces into thriving ones.

When employees feel valued, their sense of belonging strengthens, and their alignment with organizational goals deepens.

And this doesn't just impact engagement: skill development, tenure, and team performance improve.

We ran a comprehensive analysis of Bonusly’s proprietary data and insights in January 2025 to understand the benefits of modern employee recognition programs.

The analysis includes recognition trends, user behavior, and reward redemption data from 1,695,576 active Bonusly customers and trial users.

Our user data highlights how companies can connect their teams and drive results with recognition.

Recognition drives results.
Companies with engaged employees see:

From Feeling Valued
to Delivering Value

Employee recognition isn’t just about making people feel good—it’s a powerful tool that fuels action. When employees see how their contributions align with company values and make a tangible impact, they’re motivated to contribute more.

Our data shows that recognition drives cultural alignment, generosity, and a virtuous cycle of appreciation.

Creating momentum, not just moments.

Recognition in Action

Employee recognition is a proven driver of business success, fundamental to the engagement and retention of top talent and profitability.¹⁸

Organizations that prioritize recognition see measurable results like higher retention, stronger team performance, and accelerated growth, tying these programs directly to bottom-line business metrics.

At Bonusly, we partner with HR experts from over 3,400 companies across industries to help teams harness the power of recognition. They're part of a larger, growing movement of companies that know that success starts with engaged and motivated people.

The employee recognition industry is growing—fast.

Check out these market projections for the global employee recognition and rewards industry:

Recognition done right: common use cases

Building the Relationship
Economy in 2025

Three trends are shaping the shift to the relationship economy.

Having a strategy for each is the difference between leading and falling behind.²⁰

Wanna build a workplace where people and performance thrive?

Talk to one of our experts

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Methodology

This report is based on a comprehensive analysis of Bonusly’s proprietary data and insights collected in January 2025. The analysis includes recognition trends, user behavior, and reward redemption data from 1,695,576 active Bonusly customers and trial users.

To ensure robust and meaningful findings, we incorporated several additional sources, including:

Consultations with Bonusly customers: Gathering qualitative insights from organizations using Bonusly to understand the role of recognition in their workplace cultures.
Expert input from recognition analysts: Leveraging external perspectives to interpret data and highlight emerging trends in employee engagement and recognition.
Market research: Supplementing Bonusly data with third-party insights from top-tier organizations to contextualize findings within broader industry benchmarks.

Data Verification:

Proprietary data was aggregated and anonymized to protect customer privacy while ensuring accurate trend analysis.
Year-over-year comparisons were made using normalized datasets to account for variations in user base size and activity levels.

This combination of quantitative data and qualitative insights provides a holistic understanding of how recognition has evolved in the workplace, why it matters, and its impact on organizational culture and employee experience.