Nearly a quarter of UK employees think workplace rewards are handed out based on favouritism, according to research from Perkbox.
Only 39% said they understood how reward decisions are made, with just 25% saying reward systems in their workplace were structured and clear.
31% of women said reward was distributed fairly at work, compared to 39% of men.
37% of women saw reward as fair and consistent in their organisation, while 45% of men agreed.
Tracey Paxton, clinical director at Perkbox, 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.”
Paxton added: “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.”
Recognition from managers matters to employees, with 47% saying it is meaningful, but only 29% said they received regular recognition.
Only 37% received recognition in the last month that made them feel valued.
Paxton said: “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.”
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