New Research Reveals Culture Remains a Key Driver of Retention and Engagement

Culture and people continue to be powerful anchors for retaining and engaging employees, according to The State of Workplace Culture and Connection 2026, a new study conducted by the HR Research Institute in partnership with Motivosity. The research surveyed 5,538 employees, managers, and executives to understand the impact of workplace culture in today’s rapidly changing environment.

The findings highlight the tangible benefits of strong workplace cultures:

• Employees in high-performing cultures are nearly 16 times more likely to receive meaningful recognition from their managers on a weekly basis.

• They are over 9 times more likely to be recognized by peers.

• They are more than 8 times as likely to have high trust in organizational leadership.

Despite the clear advantages, the study reveals persistent gaps that undermine culture and connection. Over a third of employees report they rarely receive meaningful recognition from peers (35%) or managers (37%). Many employees feel disconnected from broader leadership, even while enjoying strong ties with immediate teams.

“Culture is built through everyday moments of connection; not giving your people more stuff or a fully-stocked breakroom,” said Scott Johnson, CEO and Founder of Motivosity. “This report confirms what we’ve long believed at Motivosity: when employees feel seen, valued, and connected, trust grows, engagement improves, and performance follows. The organizations thriving in 2026 aren’t doing more; they’re making culture a core part of their business strategy and prioritizing connection, employee engagement, and recognition as a way to reinforce the right behaviors consistently.”

Many organizations aren’t fully aware of the gaps in their workplace culture. In fact, 59% of managers and executives don’t know their Employee Net Promoter Score (eNPS), a key measure of engagement and loyalty. This “data blindness” makes it harder to spot problems before they affect retention and performance. 

The report shows that culture isn’t just a feel-good concept – when approached strategically, it delivers real benefits for employees and the business. By using modern listening tools and analytics, organizations can move from guesswork to proactive cultural management, improving recognition, trust, and the overall employee experience.

“Strong workplace culture isn’t just a nice-to-have. It’s a key business driver,” stated Debbie McGrath, CEO of HR.com. “These findings highlight how HR leaders can better understand culture, address engagement gaps, and create workplaces where employees thrive and organizations succeed.”

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About Motivosity

Motivosity is the leading Recognition and Rewards solution built for companies that understand people-first cultures drive business growth. Unlike other recognition and rewards tools, Motivosity is the only solution focused on improving employee engagement to see better performance, retention, and bottom-line results. Our platform enables frequent recognition, automates programs, simplifies communication, connects teams, and delivers meaningful, flexible rewards – all while consolidating tools and minimizing the administrative lift for HR teams. Companies that choose Motivosity don’t just recognize and reward employees, they build cultures people stay for and businesses that perform at the highest level.

About HR.com and the HR Research Institute

The #1 source for HR research-read by more HR professionals than any other! The HR Research Institute (HRRI), powered by HR.com, identifies key trends and best practices to help more than 2 million HR professionals and their organizations make strategic decisions with informed and insightful research findings.

The HRRI has published hundreds of high-quality reports across a wide array of HR topics. HR.com’s free membership offers many benefits, including access to over 300 exclusive primary research, state-of-the-industry reports, and infographics. These resources are published based on surveys developed with the assistance of a panel of thought leaders and industry experts on the advisory boards. Visit hr.com/hrresearchinstitute to maximize your HR potential. #hrresearchinstitute

Become a part of HR.com’s HR research influencer panel today! Participate in surveys, share your insights, and earn rewards!

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