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Employee motivation dipping, research reveals

Profession
12 March 2025

Employee motivation has eroded for the third year in a row, and perceived recognition has reached a five-year low, research has found.

Data from Culture Amp revealed a continued downward trend in employee motivation and recognition, with 69 per cent of employees feeling appropriately recognised and 60 per cent believing that the right people are rewarded for their efforts.

“The sustained decline in employee motivation and recognition is a clear warning signal for business leaders. Our data demonstrates that recognition isn't just about employee satisfaction, it's fundamentally tied to organisational performance and resilience,” Didier Elzinga, chief executive and co-founder of Culture Amp, said.

“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.”

 
 

The professional services industry appears to be bucking this trend, the survey finding upbeat data across the industry.

Professional services employees had high levels of engagement, with 72 per cent reporting being engaged compared to 42 per cent of those across other industries.

Almost all (90 per cent) professional services employees believe that their work contributed to the goals of their company, and they were generally positive about the broader purpose of their work.

However, one fifth (21 per cent) believed that their compensation was not fair relative to similar roles at their company.

In the Asia-Pacific region, confidence in company leaders has declined from 75 per cent in 2021 to 72 per cent in 2024.

A majority (92 per cent) of employees believed that the work they do is important, a finding which has remained stable since 2022.

According to Culture Amp, employee motivation and satisfaction are key factors contributing to performance and productivity.

“In this uncertain climate, employers are asking for more while employees are increasingly questioning 'but what for?'” Fresia Jackson, director of people science research at Culture Amp, said.

“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.”