A recent report by Great Place To Work® India and Vantage Circletitled “The Recognition Effect: A Leadership Blueprint for Emotionally Intelligent Workplaces” highlights a significant recognition gap in Indian workplaces, with only 55% of employees feeling truly recognized. The study, which surveyed over 5.7 million employees across 2,000 organizations, highlights the importance of emotionally intelligent leadership and strategic recognition practices in enhancing employee engagement and business outcomes.
The report indicates a shortfall in effective employee recognition, with a substantial percentage of employees feeling their contributions are not adequately acknowledged. This recognition gap negatively affects employee morale, motivation, and overall performance, potentially leading to disengagement and higher turnover rates.
The report introduces the AIRe framework, which encourages organizations to move beyond transactional rewards and focus on appreciation, meaningful incentives, consistent reinforcement of cultural values, and building emotional connections with employees.
The research also brings to light the demographic gaps in how recognition is experienced across gender, generations, roles, and tenure, signalling the need for more intentional, inclusive approaches.
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The study emphasizes that recognition isn’t just about acknowledgment; it is a strategic lever for trust, agility, innovation, and retention. Organisations that build high-recognition cultures outperform their peers across multiple dimensions of employee and business outcomes. In these cultures, 91% of employees report feeling motivated, 94% say their organisation is a great place to work, and an equally high percentage affirm that their company delivers excellent customer service. Nearly all respondents in such environments also associate their organisation with innovation and express a strong intent to stay.
The report calls on leaders to embed emotionally intelligent practices into their organizational culture to ensure recognition is meaningful and impactful.
Partha Neog, CEO and Co-founder of Vantage Circle, said: “The true power of Recognition & Rewards lies not in what is given, but in what is genuinely felt. When done with intention, recognition becomes more than a moment—it becomes a cultural signal that shows people they matter. It builds trust, pride, and belonging. Through this collaboration we hope to equip leaders with the insight and clarity to design recognition not as a perk, but as a strategic driver of both emotional engagement and measurable business outcomes.”
Balbir Singh, CEO, Great Place To Work® India said, “we believe that a culture of recognition develops engaged and loyal employees. When organisations make employee appreciation an intentional and integral part of workplace culture, they unlock the true potential of their people. Recognition in the workplace helps employees see that their company values them and their contributions, fostering loyalty and engagement. Recognition programmes are a crucial part of the employee experience and a key driver of perceptions of fairness in workforce, and this is where our partnership with Vantage Circle plays a crucial role in making this key driver a strategic differentiator with programmes that are best fit for each organisation.”
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