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A new report has offered a warning for employers as employee motivation continues to steadily decline.
Culture Amp’s 2025 benchmark data revealed that both employee motivation and recognition are stuck in a continued decline. According to the data, while employees are still committed to their work – the erosion of worker motivation has declined for a third consecutive year, setting off alarm bells for employers.
Employer feedback, performance reviews, and career development strategies also took a hit, with employee perceived recognition reaching a five-year low.
“The sustained decline in employee motivation and recognition is a clear warning signal for business leaders,” said Culture Amp chief executive and co-founder Didier Elzinga.
“Our data demonstrates that recognition isn’t just about employee satisfaction; it’s fundamentally tied to organisational performance and resilience. Companies that address these trends by implementing robust feedback systems and meaningful recognition practices will not only see improved retention, they will see measurable gains in productivity and innovation.”
“In today’s competitive market, the difference between high-performing organisations and those falling behind will come down to how effectively they recognise, develop, and motivate their talent.”
The proof is in the data as just 69 per cent of employee respondents feel as though they are being properly recognised for their efforts, whereas only 60 per cent believe the correct workers within an organisation are being rewarded. On top of that, only 70 per cent of employees agreed that performance reviews accurately reflect their impact, compared to 77 per cent in 2022.
“Our data tells a compelling story about today’s workplace reality,” said Fresia Jackson, director of people science research at Culture Amp. “In recent discussions with companies across industries, I consistently hear ’we’re trying to do more with less’.”
“This sentiment aligns perfectly with our benchmark findings. As recognition reaches a five-year low and motivation continues its three-year decline, companies expecting increased productivity may be setting unrealistic expectations.”
Jackson argued that the continued decline in motivation directly intertwines with the decline in the confidence of organisational leaders – calling for a vision that connects all employees to be implemented.
“The declining confidence in leaders we’re observing is directly connected to this disconnect. In this uncertain climate, employers are asking for more while employees are increasingly questioning, ‘but what for?’
“Our research shows that organisations bucking this trend are those providing a compelling vision that connects each employee’s contributions to the company’s future and recognising progress in meaningful ways,” said Jackson.
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An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
