In my training sessions I ask managers in attendance different questions to help them get grounded about employee recognition. I also want to discern how aware they are of the impact a lack of recognition has on their employees.

What I can assure you is, a large majority of managers already know that unrecognized employees are at risk.

The most common factor identified is that unrecognized employees will lack motivation, are demotivated, or have no motivation at all. This leads to underperformance or low performance. 

Most managers realize that when employees are not appreciated it will frustrate them, they become unhappy, and could well be looking for another job so are at risk of leaving the company.

In fact, research by Dr. Jean-Pierre Brun at the Université Laval in Quebec City, found that the absence of employee recognition is the second leading cause of workplace burnout and stress, right after workload.