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Employee recognition helps keep Gen Z employees motivated, engaged, and loyal by making them feel valued at work.

If you’ve hired Gen Z employees recently, you’ve probably noticed something in common they share. They don’t stick around just because a company pays well or offers free snacks. They’re smart, value-driven, tech-native, and completely unafraid to walk out if the workplace doesn’t meet their expectations.
According to recent research, approximately 73% of Gen Z would consider quitting a job because of a lack of recognition or appreciation from their manager.
Gen Zs have some of the highest turnover rates of any generation entering the corporate workforce. And, it is not because they are disloyal to their organisation, but because they’re discerning. If they have entered an environment where culture feels stale, if the work feels transactional, or if they feel like “just another cog,” they’re already halfway out the door.
So, the question is what can keep Gen Z employees actually engaged, motivated, and loyal? It is Recognition.
Not the old-school, once-a-year pat on the back. Not the vague “Nice job, team!” message at the end of a meeting.
We’re speaking frankly about specific, meaningful, frequent employee recognition, the kind that makes employees feel seen, valued, and part of something bigger. Recognition is emerging as the strongest lever for Gen Z employee retention.
Every generation sets its own expectations when entering the workforce. Where boomers wanted stability, Gen X highly prioritised independence. Millennials leaned toward purpose and flexibility. But what about Gen Z? They want to feel seen.
1. A Generation Shaped by Feedback Loops: This generation grew up on platforms where they get the feedback in a snap- likes, comments, reactions, shares, everything just in a few minutes or hours. They’ve never lived in a world where you put something out and wait six months for someone to acknowledge it.
2. They Value Authenticity and Transparency: Gen Z can smell the fake praises from a mile off. They don’t want cookie-cutter certificates. They require genuine appreciation tied directly to the work they do and the impact it creates.
3. For Them, Belonging Matters a Lot: Gen Z has been open about valuing mental well-being, personal identity, and inclusion. Recognition plays directly into this: it builds connection, boosts confidence, and strengthens workplace belonging.
And if they don’t feel valued? They leave.
The importance of employee recognition has skyrocketed for organisations that are trying to find ways to retain this Gen Z generation.
Recognition is a lot more than just being a “feel-good gesture.” Nowadays, it’s a business strategy, especially if you want to give a boost to employee engagement and keep your rising Gen Z talent in your offices. It directly impacts engagement, performance, and retention.
When employees get the recognition, it boosts morale, motivation, and a sense of purpose. For Gen Z, engagement is not about working for hours and hours without taking any breaks. It’s about feeling connected to something meaningful.
When managers and peers consistently highlight positive behaviours, employees naturally reinforce those behaviours. Recognition becomes an internal compass:
Gen Z doesn’t stay because they “should.” They stay because they want to.
Recognition nurtures that loyalty by:
Let’s talk numbers. Employees who feel appreciated are 2.7x more likely to be highly engaged. According to global HR research, recognised employees show a 14% boost in productivity and 20% higher job satisfaction across all age groups. Which simply means recognition directly impacts all levers that are important to boost productivity and growth.
Employees' higher turnover is not a joke for a business; replacing an employee can cost up to 2x their salary. A strong recognition culture is one of the lowest-cost, highest-impact employee retention strategies any organisation can adopt.

Gen Z wants the vibe of ‘I see you’ more than ‘I supervise you. Below are the most effective Gen Z retention strategies focused on recognition, appreciation, and rewards.
Gen Z does not just want recognition from their managers but also deeply cares about community, teamwork, and being appreciated by their peers. Encourage team members to send shout-outs, recognise collaboration, highlight problem-solving, celebrate small wins, and amplify each other’s contributions.
Regular peer recognition builds a culture of support and inclusion, especially in hybrid or remote workplaces.
For Gen Z, vague appreciation feels like empty calories. Specificity is everything.
Instead of saying: “Great job!”
Say: “Your research on customer behaviour gave us insights we didn’t have before. It directly influenced our strategy, and it will be a great push for our project.”
Personal, detailed feedback hits different, and it sticks.
“Rewards for employees” isn’t one-size-fits-all anymore. Gen Z loves choice. They appreciate rewards they can personalise, such as gift cards, experiences, subscriptions, wellness perks, learning credits, days off, or charity donations.
Flexible rewards are more memorable and more meaningful, making them a powerful tool for employee appreciation and retention.
To keep Gen Z engaged, celebrate onboarding moments, project milestones, personal achievements, work anniversaries, skill certifications, and internal wins. Consistent, small-scale recognition creates a drumbeat of validation that keeps morale high week after week.
Public recognition on the employee platforms like Slack or Teams helps Gen Z feel valued “out loud.” They prefer transparency because it encourages healthy competition and validates their effort. A visible recognition culture also reinforces positive behaviour across the organisation.
This is one of the biggest differentiators in Gen Z engagement. Don’t just recognise outcomes, recognise behaviours that reflect your values:
This helps Gen Z employees understand how their actions ripple into company-wide impact. And nothing builds long-term loyalty like feeling aligned with the organisation’s purpose.
The workplace has changed, and so have the expectations of the newest generation driving it. A simple thank-you from the organisation today saves you a resignation letter tomorrow.
Gen Z is the generation that is not prioritizing just a job. They want belonging. They want visibility. They want to know their contribution matters.
And that’s exactly why employee recognition has become one of the most powerful employee retention strategies for the modern workplace. A culture built on recognition boosts employee engagement, strengthens team loyalty, deepens trust, enhances performance, reduces attrition, and supports sustainable growth.
Companies that build strong recognition cultures outperform competitors by up to 12% in profitability. If you're serious about Gen Z employee retention, don’t wait until the exit interview to show appreciation. Build recognition into your culture today, and these Gen Zs will repay that investment with loyalty, energy, and long-term commitment.
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