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23% of employees believe rewards are based on favouritism
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Only 39% of employees understand how reward decisions are made
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31% of women believe rewards are distributed fairly at work, versus 39% of men
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47% of employees say manager recognition is meaningful, but only 29% receive it regularly.
London, UK, 20 May 2026 – New research from Perkbox has revealed significant distrust around workplace reward and recognition, with nearly a quarter (23%) of employees believing rewards are based on personal relationships rather than contribution.
The Science of Reward Report shows widespread confusion and inconsistency around how reward decisions are made, fuelling perceptions of unfairness and disengagement across organisations.
Of the 4000 UK employees and 1000 UK HR leaders surveyed by Perkbox, only 25% of employees say reward in their organisation is structured and clearly defined, while just 39% understand how reward decisions are made. Although 39% believe reward is fair and consistent, one in four employees say recognition depends on who their manager is.
For many employees, meaningful recognition remains rare with only 37% saying they received recognition in the last month that made them feel valued.
The issue is more pronounced for women. They were consistently less likely than men to view reward practices as fair or equitably distributed. Less than two fifths (37%) of women said reward in their organisation feels fair and consistent, compared to nearly half (45%) of men. 31% of women believe reward is distributed fairly, versus 39% of men.
Women were also less likely to believe their manager recognises good work on an ongoing basis or that recognition is visible across the organisation, reinforcing concerns that informal or unclear reward structures can deepen perceptions of inequality at work.
Tracey Paxton is one of the UK’s leading applied psychotherapists, and Clinical Director, at Perkbox. She said:
“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.
“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.
“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. That will inevitably affect performance, motivation and engagement and whether they feel the organisation is a place they can progress in.”
Concerningly, nearly a third (31%) of employees said a lack of reward and recognition would influence their decision to stay with or leave an organisation. Among employees considering leaving in the past 12 months, 64% said poor reward and recognition had contributed to that decision.
The findings also point to managers as a major factor shaping how employees experience recognition at work. While 47% of employees said manager recognition is very meaningful, only 29% said their manager regularly recognises good work on an ongoing basis. Employers themselves identified a lack of manager consistency as one of the biggest barriers to effective reward and 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 is one of the most powerful tools to shape behaviour and build trust,” added Paxton.
