When Compensation Isn’t Enough: The Hidden Cost of Feeling Unappreciated

One topic that often comes up with my executive clients is feeling undervalued or under-appreciated. Recently, one executive shared a sentiment I hear often: despite years of dedicated contribution, they felt “invisible” to those above them.

In my experience, the following graph is true.

As you get promoted, you often get less verbal praise and recognition. Is the money enough?

It’s common as people advance in their careers: the form of recognition shifts, moving from praise and feedback to financial compensation. But is a paycheck or bonus truly enough? In my experience, the answer is often “not quite.” Money may reflect our impact and responsibility, but it doesn’t entirely replace the need for acknowledgment.

As leaders, we’re expected to be self-sufficient and to draw strength from within. Yet, self-appreciation is both a skill and a mindset shift that’s essential to develop. Without it, even the most seasoned professionals can feel the effects of being unseen.

Interestingly, I’ve also coached executives who consciously limit praise for their senior team members, fearing it may drive up expectations for raises or promotions. This fear-driven approach can lead to a culture where people are financially rewarded but still feel undervalued—and this disconnect is one of the top reasons employees leave.

If you’re in a leadership role, consider the impact of small gestures of appreciation: regular check-ins, personalized feedback, and acknowledging achievements beyond performance reviews. Genuine praise doesn’t have to be grand to make a big impact.

I’d love to hear your thoughts:

• How do you balance praise with self-appreciation?

• Have you seen the effects of a lack of recognition in your organization?

• What works for you in creating a culture where everyone feels valued?