How appreciation, recognition and trust drive employee retention and performance

Why this research matters to CHROs

CHROs and HR leaders are under pressure to improve employee retention, strengthen manager effectiveness, elevate employee experience and create a culture that supports business performance.

ITA Group's research shows that sustainable culture is built through intentional leadership behaviors that help employees feel seen, valued and supported, beyond another HR technology investment.

In this research report, you'll explore:

Why appreciation goes beyond praise and helps employees feel accepted, respected and valued
How meaningful recognition reinforces behaviors that strengthen culture and performance
The leadership behaviors that build trust and support long-term retention
Why culture is shaped by everyday interactions, not policies alone
Practical ways to create more consistent, meaningful employee experiences at scale

Organizations with supportive cultures are:

71%

more likely to improve productivity

54%

more likely to improve retention

28%

more likely to increase revenue

10x

more likely to have employees recommend their employer as a great place to work

Overcoming low employee engagement

Employee engagement remains low despite decades of investment in recognition and rewards platforms and employee experience initiatives. Why? Because recognition without appreciation and trust often becomes transactional rather than transformational.

There's a critical gap between organizational intent and employee experience. Employees want more than a generic "thank you." They want to know that their contributions are noticed, their work has meaning and their leaders genuinely care about their success.

Organizations that create cultures where employees feel accepted, respected and appreciated are more likely to strengthen belonging, improve retention and unlock higher performance.

ITA Group's A.R.T. approach to recognition

This report highlights ITA Group's A.R.T. approach (Appreciation, Recognition, Trust) and explores how these behaviors influence employee retention, workplace culture, leadership effectiveness and organizational performance.

Rather than treating recognition as a standalone program, the A.R.T. approach focuses on the everyday leadership behaviors that help employees answer two fundamental questions: Do you see my impact? Will you support me?

About Lighthouse Research & Advisory

Lighthouse Research & Advisory is a modern analyst firm dedicated to setting the standard for excellence in talent, learning, and HR. By providing compelling research and actionable insights for business leaders, our team’s mission is to navigate the rapidly changing field of human capital management to support today’s talent and learning functions.

Our advisory, research, content, events, HR Awards Program, and other offerings serve tens of thousands of employers across the globe every year.

Put simply: our goal is to chart a new course for talent. We do this with compelling research, innovative ideas, and a strong grasp of the current state of talent and technology at work. We have supported hundreds of organizations with our research, advisory, and insights since our beginning in 2016. In addition, our data also inform key product and strategy decisions at the industry’s leading technology and service providers.

Discover what drives employee engagement, culture and retention

Employee expectations continue to evolve, but the need to feel seen, valued and supported remains constant. Download the research report to learn how leading organizations use appreciation, recognition and trust to create stronger cultures and improve employee engagement and retention.