Employees aren’t feeling recognised — and 2026 could see a wave of exits: Report

Manager-led recognition has sharply declined at a time when a third of employees plan to leave their jobs in 2026, according to new research that warns of a deepening retention challenge and rising economic costs linked to attrition.

The latest report from the Achievers Workforce Institute (AWI) found that recognition from managers — described as the most influential driver of engagement and connection — has dropped from 20% to just 15%. The decline comes as organisations face what the institute called a “recognition crisis”, with only 23% of employees saying they feel meaningfully recognised at work.

The report also highlighted an escalating intention to quit across the workforce. AWI data showed that 34% of employees intend to seek a new job in 2026, while only 25% envision a long-term future with their current employer. Analysts cited by the institute said the convergence of weak recognition practices and heightened mobility is creating a structural risk to retention.

The financial implications are significant. AWI estimated that workforce attrition could cost employers in the United States between $1.3 trillion and $5.1 trillion next year, based on median salaries and standard replacement costs. The report argued that appreciation must therefore be treated not as an HR perk but as a strategic lever for retention.

“The takeaway is simple: appreciation isn't optional – it’s a strategic lever for engagement and retention,” the report stated. “When appreciation is embedded in culture, engagement follows – and so does retention.”

The institute outlined several steps for employers seeking to build stronger cultures of recognition, including weekly rather than annual recognition, empowering employees to recognise peers, and linking appreciation to organisational values and wellbeing. It also recommended regular audits of recognition practices to identify inconsistencies.

Managers, AWI said, must be equipped to lead with recognition. The report called for training that helps managers turn recognition into a daily habit, adopt coaching behaviours rather than task-focused oversight, and conduct regular one-to-one conversations that reinforce connection and growth.

“Because when managers recognise and support their teams, employees don’t just stay – they succeed,” the report noted.

The institute’s previous research shows the impact of sustained recognition. Employees who receive regular acknowledgement from their managers are more likely to feel supported, connected to the organisation and confident about their growth prospects. Those who do not experience consistent recognition, however, report weaker connection and a greater likelihood of leaving for a better manager.

The difference is stark. Only 28% of highly appreciated employees are looking for a new job, compared with 71% of undervalued employees. AWI said the data “tells a story HR leaders can’t ignore”, warning that cultural erosion is likely when appreciation is absent.

Appreciation from peers offered similar benefits, strengthening belonging — a factor linked to resilience, discretionary effort and retention.

With attrition intent rising ahead of 2026 and recognition levels falling, the report concludes that organisations must urgently re-engineer how managers support and recognise employees. HR leaders, it said, face a narrowing window to rebuild trust, elevate people leadership capabilities and prevent avoidable turnover.