Most organisations try to recognise their people, but fewer are successful converting that recognition into loyalty though. That conversion moment is what recognition and reward specialists BI WORLDWIDE EMEA call Recogdemption – the point where recognition, the redemption of a meaningful reward, and employee retention & performance, all intersect to create a self-sustaining cycle of engagement.
It’s actually a deceptively simple idea with big implications: if employees are recognised but rarely redeem or receive anything of value, their emotional momentum stalls. If they can redeem or receive something that feels really worthwhile – and are able to do so early and often in their time with an organisation – then a positive loop accelerates: I feel seen → I can act on it → I feel valued → I want to stay and contribute more.
I’ve written, researched and spoken a lot about recognition and retention over the years, and I’m really interested in the concept of Recogdemption, which is based on behavioural analysis from almost 1 million employees across more than 100 countries. It certainly feels a lot like the flywheel concept popularised in the book ‘Good to Great’ – putting the employee at the centre.
So What Exactly is “Recogdemption”?
Keeping with the flywheel concept, if Recognition is the spark, then redemption is the action that turns the spark into movement, and retention is the forward motion that compounds value.
When recognition and redemption are designed to connect, then the flywheel keeps spinning. When they’re not, you’re left with isolated “thank-yous” and small rewards that feel good in the moment but fade quickly and offer no lasting impact.
I see three design truths at the heart of the Recogdemption concept:
- Timing matters. Early recognition – especially in the first six months – has an outsized impact. It anchors belonging before habits (good or bad) harden.
- Redemption isn’t trivial. Being able to redeem something meaningful soon after recognition is what makes the experience tangible. Research points to a “first redemption” sweet spot: something not so small that it feels tokenistic, but also not so large that it seems unattainable. The exact number and size will vary by market and pay bands, but the principle holds – make the first conversion both visible and achievable.
- Not everyone redeems the same way. Some people are spenders who redeem more frequently after a handful of recognitions; others are savers who wait longer and prefer bigger, more aspirational rewards. Treating everyone like a spender – or everyone like a saver – may leave value on the table, so all redemption patterns and aspirations should be catered for.
Why Does Recogdemption Matter Now?
There are three emerging business realities that I think make Recogdemption more than just a clever label, but a concept that needs to be embraced.
Firstly, retention pressure has shifted from something that happens periodically to becoming something more structural. Labour markets are tightening, there are rising skill shortages, and employee absence is increasing. The impact of losing the people you want to keep puts more pressure on the business and its leaders. Recognition alone might not fix that – but recognition that converts can.
Secondly, employee expectations have matured, and so have their expectations from recognition. People don’t just want to accumulate points; they want proof – clear signals that their efforts are seen, and that they can translate into something tangible, such as choice, experiences, time or money-equivalents.
Thirdly, budgets are under scrutiny. HR needs a line of sight from spend to outcomes. Recogdemption can give you the measurables that leaders care about: early-tenure recognition rates, time-to-first redemption, redemption frequency by segment, and the retention differential for frequent redeemers.
How Recogdemption Should Work in Practice
- Front-load recognition. It’s a mistake to wait for periodic, or annual, cycles. Try to design onboarding and early-tenure routines in a way that encourages contributions quickly – eg. peer shout-outs, manager notes, cross-team “thank yous”. These should be tied to points or credits that can actually be redeemed.
- Engineer the first redemption. It’s important to build clear – and easy to use – pathways from recognition to action. Nudges like – “You’re 20% away from your first reward” – are useful encouragers. Also aim for a meaningful first redemption within the early months – enough to feel real, but not so high it becomes a distant mirage.
- Segment redemption behaviour – identifying spenders and savers early. For spenders: you should keep the catalogue fresh, accessible, immediate – low friction, quick delivery, everyday delight. For savers: make aspiration visible – progress bars, limited-time goals, experiences or higher-value items that justify waiting.
- Mix frequent recognition with occasional signal rewards. Small, frequent wins are useful for maintaining momentum. Periodic high-signal rewards – which are fewer but more meaningful – can help emotionally (eg. “you really matter here”)
- Enable managers to try and normalise the habit. Programmes don’t deliver; managers do. You should give managers and leaders prompts, examples and a short monthly routine to follow: eg. “Who went above and beyond? Who helped onboard faster?” Recognition should be specific, timely and authentic – and also connected to values or outcomes.
- Measure more than clicks. Looking beyond “how many points issued” to track metrics like time-to-first recognition, recognitions in first six months, time-to-first redemption, redemption frequency, repeat redeemers, and especially monitor the retention rate of high-frequency redeemers versus others.
Common Recogdemption Failures (and how to avoid them)
There are 5 common types of failure
Tokenism – If employees need dozens of recognitions to reach anything redeemable, they’ll disengage. Ensure the first redemption is within reach
Catalogue fatigue – A static selection erodes excitement. You should rotate items, add experiences, and localise choices. Also give people some agency in different types of gift cards, charitable options, or time-off equivalents
Manager inertia – Leaders often “mean to” recognise and then get busy and distracted. Bake recognition into cadence – such as one agenda item in team meetings, a monthly reminder, prompts tied to project milestones.
Equity blind spots – If only extroverted, customer-facing work gets recognised, you’ll end up amplifying inequity. Use peer nominations, manager audits and analytics to ensure that invisible work (eg. documentation, mentoring, maintenance) gets its share of spotlight.
No pathway to meaning – Recognition without redemption feels like applause without an encore. Make the path obvious, the steps short, and the win will be felt.
Why Recogdemption is a strategic lever – not a “nice to have”
When Recogdemption is designed well, you will get more than happy moments. You build predictable retention effects that can be seen in the data – frequent redeemers stay longer, contribute more, and advocate louder.
You can also build a culture that catches and amplifies people doing the right things – early and often – so that standards rise without burnout. And you earn credibility with Finance by linking budgets to measurable outcomes: reduced turnover cost, faster ramp-up, fewer hiring cycles, stronger productivity.
In short, Recogdemption reframes recognition from acts of kindness to acts of design. It’s the shift from “we thank people sometimes” to “we’ve engineered a culture where being seen leads to taking action, which leads to feeling valued, which leads to staying.” In a labour market where loyalty has to be earned – not assumed – that design advantage is hard to copy and even harder to ignore.
If your organisation already invests in recognition but isn’t seeing the retention lift you expect, don’t scrap the effort – connect it. Make the path from recognition to redemption short, meaningful, and visible. Segment it for spenders and for savers. Give managers a simple habit to follow. Then measure what matters and scale what pays back.
Recogdemption is how you can turn appreciation into advantage.




