Nearly a quarter of UK employees believe workplace rewards are influenced more by favouritism than performance, according to new research pointing to growing distrust around recognition and fairness at work.
Many employees also said they did not understand how reward decisions were made, while women were significantly less likely than men to believe recognition and rewards were distributed fairly. Experts say it reveals growing concerns that confusion around workplace recognition is contributing to disengagement, lower morale and higher staff turnover.
Research from employee benefits and reward platform Perkbox found that 23 percent of employees believed rewards in their organisation were shaped by personal relationships rather than contribution. The survey, of 4,000 UK employees and 1,000 HR leaders, also found only 25 percent of employees believed reward structures in their organisation were clearly defined.
Recognition gaps damaging trust
Just 39 percent of employees said they understood how reward decisions were made, while one in four said recognition depended largely on who their manager was.
Although 39 percent believed reward practices were fair and consistent overall, many employees said meaningful recognition remained rare. Only 37 percent said they had received recognition in the previous month that genuinely made them feel valued.
The research also suggested managers were playing a central role in how employees experienced recognition. Almost half of employees said manager recognition was meaningful, but only 29 percent said their manager regularly recognised good work on an ongoing basis.
Employers themselves identified inconsistent management approaches as one of the biggest barriers to effective workplace recognition.
Gender divide over fairness
The study pointed to a notable gender gap in perceptions of fairness and recognition. Women were consistently less likely than men to believe workplace rewards were distributed equitably.
Just 37 percent of women said reward practices in their organisation felt fair and consistent compared with 45 percent of men. And only 31 percent of women believed rewards were distributed fairly, compared with 39 percent of male employees.
Women were also less likely to feel recognised by managers or believe recognition was visible across the wider organisation.
The research also points to concerns that informal recognition structures may be reinforcing perceptions of inequality in some workplaces.
Tracey Paxton, clinical director at Perkbox and an applied psychotherapist, said uncertainty around reward systems could have a significant psychological effect on employees.
“If employees don’t understand how decisions are made, they are going to feel it is inconsistent. Once doubt creeps in, it’s hard to rebuild trust. As a result, unclear and inconsistent reward structures risk undermining trust, motivation and retention,” she said.
Paxton said perceptions of favouritism could create uncertainty and weaken confidence.
“When recognition feels inconsistent or influenced by favouritism, it creates uncertainty and from a cognitive perspective, the brain doesn’t respond well to that. It starts to question what’s valued, what’s expected and where you stand.
“Over time, that has a real impact on confidence and motivation.”
Retention risks increasing
The research also linked weak recognition practices to retention concerns.
Almost a third of employees said poor reward and recognition would influence whether they stayed with an employer or decided to leave. Among workers who had considered leaving during the previous year, nearly two thirds said poor recognition had contributed to their decision.
Paxton said employers needed to recognise the wider organisational impact of inconsistent recognition practices, particularly for women.
“What’s particularly concerning here is the gender gap because if women don’t feel recognised or fairly rewarded, it reinforces a sense of being overlooked, less visible and not treated on an equitable basis,” she said.
“That will inevitably affect performance, motivation and engagement and whether they feel the organisation is a place they can progress in.”
She also said many managers needed more support and training around recognition.
“Recognition isn’t always intuitive, especially when someone is under pressure, as many managers are. Managers need to be trained to understand, not just the processes around reward and recognition, but the psychological role they play in applying it.
“Recognition needs to become a standing agenda item in team meetings. If done right, it’s one of the most powerful tools to shape behaviour and build trust.”
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
