High-quality employee recognition programs can reduce voluntary turnover by 45 percent, according to a new study by Gallup and Workhuman. The conclusions, published on Wednesday in the report The human-centered workplace: building organizational cultures that thriveemphasizes the critical role of recognition, feedback, and improvement in driving employee retention and engagement.

The two-year study, which tracks more than 3,400 employees, found that strategic recognition programs that meet specific criteria — such as being fair, authentic and deeply embedded in the workplace culture — significantly boost employee morale. Employees who received recognition by satisfying at least one key pillar were nearly three times more likely to be engaged, while those experiencing recognition aligned to four or more pillars reported a 66% greater likelihood little bit of daily loneliness.

“Recognizing personal and workplace achievements not only reduces turnover, but also improves positive emotions and engagement,” said Dr. Meisha-Ann Martin, Senior Director of People Analytics at Workhuman. “When employees feel valued and connected, they thrive and so do the businesses they work for.”

The report also highlights a notable shift among senior executives, with 42% now strongly agreeing that employee recognition is central to engagement and retention strategies, up from 28% two years ago.

Feedback also emerged as a key driver of engagement, with employees receiving meaningful feedback five times more likely to be engaged. However, nearly half of employees (46%) report insufficient feedback from their managers, and only one in four strongly agree that they receive valuable input from colleagues.

Recognition and feedback also play a critical role in professional growth. Employees who strongly agree that their organizations encourage upskilling are 8.4 times more likely to feel there is room for growth and 47% less likely to be actively looking for jobs. However, only 14% of employees said their skill development efforts were recognized as part of their recognition.

“The world is changing rapidly, and organizations must evolve,” said Ed O’Boyle, Gallup Global Leader. “Recognizing and encouraging improvement fosters a culture of curiosity and growth that benefits both employees and businesses.”

The report highlights the urgency for companies to prioritize recognition and professional development as central pillars of their workplace culture. To access the full findings, visit Workhuman or Gallup online.

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