The Psychological Impact of Recognition on Employee Motivation and Engagement — 3 Key Insights for Leaders

Opinions expressed by Entrepreneur contributors are their own.

The urgency for companies to bolster employee motivation has escalated in an evolving work environment marked by economic uncertainties. Findings from the ADP Research Institute reveal a significant downturn in worker motivation as of August 2023, with the Employee Motivation & Commitment Index hitting its lowest point since June 2022 at a value of 100, down from a peak of 121 in December 2022. This stark decline highlights a widespread issue, as only about four in 10 American workers are considered highly productive.

This drop in motivation and engagement is a major concern for organizations nationwide. Ensuring that employees not only

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