While data is a powerful tool for driving engagement, it’s most effective when paired with genuine human connection. Fleur Tang, vice president of human resources in biosciences at BD, highlighted the value of combining analytics with direct employee interactions to create a more complete picture of the workplace experience.“ In order to really understand associates’ needs, one big part is to really get quantitative feedback,” she said during a panel discussion at From Day One’s Silicon Valley conference.

 “But we are so very big on gemba—meaning that you go to where work happens.” By spending time with employees where they work, managers can uncover insights that surveys alone can’t provide.

Employee expectations are shifting rapidly—so how can companies keep up? Has the role of recognition and rewards in the workplace ever been more vital and complex? Tang and four other panelists explored how companies can empower managers to lead with empathy, purpose, and personalization. Moderated by David Thigpen of UC Berkeley, the discussion illuminated the evolving responsibilities of today’s people leaders and offered actionable insights for organizations of all sizes.

Recognition efforts, Tang says, must align with company culture and be rooted in purpose. “Let’s be clear about the behaviors we are trying to recognize. That should be absolutely aligned with the culture we are creating for the organization.” It’s not just about the reward—it’s about reinforcing the right behaviors and supporting long-term engagement and retention.

Tang also emphasized the growing complexity of middle management. “I think middle-level people managers have the most difficult role nowadays,” she said. These managers must navigate top-down mandates while keeping their teams engaged and productive. That’s why BD has made a conscious effort to support mid-level leaders through initiatives like “second circle meetings,” where leaders one level below the executive team receive direct communication and context from the company president.

Purpose, Recognition, and Well-Being

Certainly, effective recognition requires data—but not just from a single point in time, says panelist Florencia Porcaro, senior human resources director at Google.

“Data is the guiding principle by which we make decisions,” she said. Google uses a variety of touchpoints—including annual, weekly, and initiative-specific surveys—to track the evolving needs of employees throughout their life cycle. “A single employee may have different needs at different times,” Porcaro noted, emphasizing the importance of understanding those shifts in order to personalize support.

That personalization takes many forms. For instance, Google’s annual benefits selection period allows employees to reassess their priorities and choose options that best match their current life stage. “It’s a moment to figure out what’s changing in my life, what I value more now,” Porcaro said. The company also offers funding to help make those choices more accessible, empowering employees to tailor their benefits in a way that supports well-being and engagement.

Today’s managers face unprecedented challenges, from geopolitical shifts to navigating the AI era, all while being expected to coach, support, and scale teams effectively. Despite the growing demands, Porcaro noted that employees increasingly seek more than just monetary rewards—they want growth, fulfillment, and visibility.

“We do things like design recognition programs tied to organizational OKRs,” she said. Top contributors have opportunities to present their work directly to vice presidents in open-floor sessions. “It creates experiences where employees feel seen, valued, and that their work is adding up to something bigger.”

That sense of care and intentionality became even more evident during Covid, when Google rapidly mobilized to send Covid tests to employees’ homes. “That speaks loudly about a company thinking about the well-being and needs of a community.”

Personalized Management

What does employee recognition and rewards look like at a smaller company? Panelist Abhishek Budhraja, talent business partner (engineering) at Groq, says the company’s approach is to rely heavily on managers to meet each person’s unique needs.

“Most people join startups because they believe in the mission—so the real magic happens when we align individual preferences, learning goals, and personal needs with the company’s direction,” he said.

Budhraja emphasized the importance of recognizing employees as multi-faceted. “Take me—I’m a millennial, but also a parent and an immigrant. You can’t just look at one label and assume it tells the whole story. That’s why it’s in a company’s best interest to offer autonomy and flexibility, guided by empathetic managers who help individuals find what works best for them.”

While tools and offerings have evolved, the fundamentals of good management remain the same. “Empathy, perceptiveness, and helping people feel connected to a greater purpose are still core,” he said. “Those are timeless.”

He’s also seen how people’s choices can surprise you. “I’ve had employees turn down promotions because they weren’t right for their life stage. Or at Uber, we’d give two types of offers—one with more equity, one with more cash—and you couldn’t predict what people would choose. That’s why understanding where someone is coming from—and giving them a choice—is so critical.”

The Affordability Gap

One of the most persistent—and often misunderstood—challenges in employee benefits is the affordability gap: employees want to engage in benefit programs but simply can’t afford to participate.

Panelist Aaron Shapiro, founder of Carver Edison, sees this gap firsthand in his work with companies of all sizes, from biotech startups to Fortune 500 firms.

“A lot of times, lower-income employees get written off as not being interested in programs because they’re focused on other issues,” he said. “What we found in our data says that is not true at all.” Shapiro says participation drops when payroll deductions make programs inaccessible to those who need them most.

This affordability barrier has a direct impact on retention. Many employees are seeking only modest increases in pay, but without support, even small gaps can lead to turnover.

“Seventy-eight percent of people looking for a new job right now are primarily interested in just making more money,” Shapiro said, citing recent Federal Reserve data. “The answer was basically a 10% raise on average.” While that increase may not seem significant on an individual level, it adds up quickly for employers—and makes the case for more creative compensation strategies.

Carver Edison addresses this gap through its product, Cashless Participation, which allows employees at public companies to join stock plans without upfront payroll deductions.

“Last year that delivered about a seven-and-a-half percent raise to the average employee using our product,” Shapiro shared. “And what we found is that not only did 18-month retention rates go up by about 50%, but also click-through rates on simple things like emails were up 500%.” That kind of impact on both financial wellness and engagement shows what’s possible when companies think beyond the traditional benefits model.

Customizing Benefits

As companies work to improve employee engagement and retention, one truth remains clear: there is no one-size-fits-all solution. Customization is key.

Panelist Jeff Hermosillo, northern California health solutions practice leader at Aon, emphasized that understanding employee needs starts with asking the right questions—and then placing the answers in context.

“You survey, and you get as much information as you can,” he said. “But then you benchmark. Maybe you’re a tech company and want to know how you stack up. What your employees say matters, but context, comparing across companies or industries, helps you make sense of everything.”

Aon’s employee sentiment study sheds light on generational preferences. “We tallied information across four generations and asked, ‘What are the most valued benefits?’” he said/ “Gen Z put health insurance first, followed by work-life balance, time off, career development, and retirement. Baby boomers, on the other hand, ranked retirement highest—and work-life balance came in fifth.”

While preferences may differ, Hermosillo says there’s usually a shared core of value. “Even though baby boomers ranked health care third, they still care about it,” he said. “So you look to optimize the areas of common ground, then ideally provide some customization so people can choose what matters at their stage in life.”

That personalization also extends to how rewards and recognition are delivered. “It’s like throwing a party—someone’s not going to like the meal or the venue,” Hermosillo said. “It’s the same thing with recognition programs. People have different preferences, and that’s okay. The key is understanding who you’re working with and having some flexibility.”

Among the panelists, one thing was clear: the most effective recognition and rewards strategies are rooted in flexibility, empathy, and a deep understanding of employee needs. Whether it’s closing the affordability gap, personalizing benefits, or empowering middle managers with better tools and support, companies must move beyond one-size-fits-all solutions. By equipping managers to recognize their teams in ways that are timely, meaningful, and aligned with company values, organizations can foster a culture where employees feel truly seen, supported, and inspired to stay.

Carrie Snider is a Phoenix-based journalist and marketing copywriter.

(Photos by David Coe for From Day One)