Coming up with, implementing, and improving existing employee recognition programmes can be daunting. However, because employee recognition improves turnover and increases engagement and productivity, having programmes that streamline the recognition process while maximising the amazing benefits of recognition is important.

To help you implement and enjoy more effective recognition programmes, we’re going to break down everything you need to know about them, including:

• What is employee recognition?
• What types of employee recognition programmes are best?
• What makes an effective employee recognition programme?
• How to overcome common challenges when implementing a programme?
• How can technology help run a recognition programme?
• What employee rewards are best to offer?

By the end of this post, we hope you’ll feel confident in your ability to start, manage, and improve recognition programmes so that your employees feel valued and the company really sees the ROI of recognition.

What Is Employee Recognition? 

Employee recognition is the act of showing appreciation or gratitude to an employee for what they bring to the table. It can be given for the work they’ve done, for a special event or milestone they’ve achieved, or just to show appreciation for them as human beings.

Don’t get confused about the difference between recognition and compensation. A paycheck and benefits are extremely important and definitely play a part in retention and job satisfaction. However, recognition is important for conveying value and providing positive feedback that creates a culture of gratitude and excellence.

Employee recognition should be simple, not complicated; rewarding, not intimidating. Think about when you were young and you were taught to say “thank you” after someone did something for you. Recognition is the same idea—it’s simply saying “thank you” to your staff for all they do.

Understanding the ROI of Employee Recognition Programmes

As you consider implementing different types of employee recognition programmes, it's important to understand the return on investment (ROI) these programmes can offer. Employee rewards and recognition are a growing trend that can combat employee turnover and help you retain your talent. But what sort of returns do you get from investing valuable time and money into these programmes?

Employee Recognition and Turnover

Employee turnover is a significant concern in today's work environment. With over 44 million Americans resigning in 2023, one of the highest numbers in decades, retaining talent is more important than ever.

However, companies with effective recognition programmes have a 31% lower voluntary turnover rate than those without. This means you could expect to spend significantly less in turnover costs. Moreover, recognition makes employees 56% less likely to look for a new job and 3X more loyal to the organisation.

If you’re looking for the ROI of recognition, you’ll find it in a lower turnover rate and loyal employees

Employee Recognition and Performance

Recognition programmes also have a direct impact on employee performance. Good recognition programmes increase productivity and performance by 14% because employees know that when they work hard, they’ll be rewarded. 

Also, 37% of employees agree that recognition is the best motivator, and when an organisation gives fair recognition, employees are 3X more engaged.

More motivated employees who are engaged more often and more productive? Yes, employee recognition really does it all.

The Impact on Overall Satisfaction

Overall, a good employee recognition programme elevates your workforce’s satisfaction levels at work. Research shows: 

• Recognition lowers frustration levels by 28.6%.
• Companies spending at least 1% of payroll on recognition see an 85% boost in employee engagement.
• 93% of employees who feel valued are motivated to do their best work.
• Over 80% of employees agree that recognition improves their experience, relationships, engagement, and happiness.
• 94% of employees who receive daily recognition are satisfied or very satisfied with their jobs.

Remember: It All Comes Down to Being a Good, Caring Human Being

Your employees are humans, individuals who all bring unique value to your company, and they deserve to be shown gratitude. They deserve to feel accepted and appreciated. The amazing ROI of recognition is really just a happy consequence of valuing the uniqueness, skills, and personalities that your employees bring.

Different Types of Employee Recognition Programmes

Employees do a lot for a company, and that means there are many different types of recognition programmes that you can implement to show those employees appreciation. See some of the most common recognition programme types below.

Peer-to-Peer Recognition Programme

A peer-to-peer recognition programme is one that allows an employee’s coworkers and peers to recognise them for their efforts. Because this recognition comes from peers and friends who often know the employee better than leadership, this recognition is often seen as more genuine and truthful.

Peer recognition can boost performance and feelings of belonging—and the best part is that it is often easy to implement and requires little to no oversight. Simply encourage all employees to pay attention to their peers and empower them to recognise each other.

Examples of peer recognition programmes include:

• On-the-spot programmes, where employees can instantly send a message of gratitude to their coworkers whenever they feel like it.
• Shoutout programmes, where employees have a small budget each month to send points to their coworkers.
• MemoryBooks™, where employees write personalised messages for their coworkers’ service anniversary celebrations.

One Awardco client, ClickUp, built a hugely impactful peer recognition programme, where they give each employee $100 every month to reward their peers with. This has had a big impact on their culture of engagement and appreciation, leading to a lot of excitement around their recognition programmes.

Performance-Based Recognition Programme

While it’s vital to recognise employees for everything they bring to the table, recognising employees who work hard and perform at a high standard is also important. When leaders recognise employees who go above and beyond, they reinforce those productive behaviours.

In fact, 92% of employees are more likely to repeat a specific behaviour after they’re recognised for it. Some examples of performance-based programmes include:

• Weekly shoutout on social media. Shoutout an employee who did great work that week on the company’s social media platform. Add a small monetary reward or gift card to really make the programme pop.
• Employee of the month. Pick an employee each month who consistently exceeded expectations and reward them with points, cash, a public shoutout, or some other fitting recognition that shows how much you value their contributions.
• Wall of fame. Similar to an employee-of-the-month, creating a permanent shrine to the excellence of your employees is a fun, visible way to show your appreciation.

The purpose of performance-based employee recognition is to recognise the people in your organisation who work hard. They deserve to be thanked for their efforts, and by doing so, they’re more likely to stay at the company and continue to work hard.

Incentive Programmes

Employee incentives are a great way to drive specific behaviours and build a company culture that is based around healthy behaviours and company values. They can also be used to get employees more engaged and excited about your company!

Here are some great incentive programme ideas to help you get started:

• Wellness incentives. Help your people build and maintain healthy habits by setting up programmes that reward things like walking more, eating healthy, going to the gym, meditating, or similar wellness activities.
• Safety incentives. If your employees work on a manufacturing floor or in similar risky environments, incentivise safety and compliance by recognising and rewarding those who follow all of your safety practises.
• Sales incentives. Sales is the foundation of any business growth, so getting the most out of your sales team is key. With a rewarding sales incentive, you can motivate your salespeople in a healthy, rewarding, and sustainable way.

Southwest Gas, another Awardco client, built a customised safety programme that included the courses and certifications they needed for their workforce. Then they made sure that everyone who participated was recognised and rewarded. This got everyone excited about safety and has helped them improve their culture.

Employee Milestone Programmes

Organisations can implement a few different milestone programmes, the most common of which is service awards. For every year an employee stays at the company, they get recognised and potentially rewarded with a gift. (Cheque out our guide for creating an effective service award catalogue!)

While service awards are a great starting point, employees go through many milestones in both their professional and personal lives. Promotions, graduations, marriages, having a child, buying a home, and retirement are just a few examples.

Creating recognition programmes that celebrate these milestones will show employees that the company cares about their happiness and their lives outside of work. And when employees feel valued, they’re more motivated and engaged.

Here are some specific ideas for recognition programmes for employee milestones:

• Service awards. Recognise each employee’s work anniversary every year. Not each year has to include an expensive gift, but a programme that at least provides genuine messages of gratitude will go a long way.
• Employee birthday celebrations. Celebrate employee birthdays the right way with a hand-written card, a snack that the employee likes, and some points that they can spend on themselves in whatever way they want.
• Personal milestone gift boxes. Are employees getting married? Provide a gift box with marriage-centred gifts. Did they buy a new home? Give them a house-warming box with gift cards for furniture. Did they have a baby? Give them a box full of diapers, toys, etc. 

CPS Group utilised Awardco’s automation and reward network to make their service awards more meaningful, personalised, and timely. This has led to a 20% increase in employee engagement scores!

Wellness-Focused Recognition Programmes

Burnout, stress, and a lack of work-life balance are running rampant in the workforce today. Stress makes turnover 3X more likely and burnout costs the U.S. $300 billion each year in lost productivity. Because of how common these feelings are, 87% of employees expect their organisations to support their work-life balance.

The good news is that you can create wellness programmes that help employees stay mentally and physically healthy. Some good examples of these programmes include:

• Gym membership reimbursement. This makes it easy for employees to afford a gym membership.
• Wellness classes. Hold classes where nutritionists, personal trainers, financial professionals, or mental health professionals provide training for employees in overall wellness.
• Fitness equipment rewards. Recognise employees’ efforts to work out by rewarding them with a catalogue of fitness equipment, such as running shoes, workout clothes, or sports equipment.
• Spa days. Give everyone a gift card and a day to go to the spa for some good old fashioned pampering. You can also send self-care items in a care box to remote employees or those who don’t have a spa in their area.
• Therapy help. Provide mental health app subscription fees or subsidise therapy costs.
• Extra PTO. Reward employees with the occasional extra day off. At Awardco, everyone gets one extra day off after each quarter, just as a way to thank employees for their months of hard work.

By recognising your people with cash that can be spent on wellness costs, fitness clothing, or mental health support, employees will be able to combat stress and burnout much more effectively.

Seven Bridges has taken advantage of Awardco’s customisation options. Not only have they created a wellness programme for their employees, they’ve created nearly a dozen others for employees to participate in!

Employee Award Programmes

Employee awards are an important part of recognition—many of the recognition programmes listed in this post are for wide-reaching appreciation, which is great! But employee awards are meant to honour the achievements of your top performers and keep them engaged and satisfied.

In addition to rewarding top performers, good employee award programmes can incentivise and motivate everyone else to put in greater efforts. Here are some examples of employee award programmes to help you brainstorm:

• Monthly awards. Whether you set up an employee of the month, mentor of the month, culture champion, or any other programme, it's key to set up clear criteria for how to win, offer rewarding awards, and host a small award ceremony each month, announcing the winner to the company.
• Department-specific awards. Every department has different responsiblities and ways of measuring success. Instead of sticking everyone into a broad award programme, let each department come up with their own. THat way, everyone from IT and Marketing to Sales, Quality Assurance, and HR will have ways to be recognised for their work.
• Professional development awards. Growth and learning is important for every employee. After you create professional development programmes, award those who participate and achieve their goals to show them you appreciate their efforts.

Visionworks has created multiple custom recognition programmes, including an annual award programme and Gold and Silver Vision awards to recognise the achievements of their employees on a regular basis.

Remote Employee Recognition Programmes

Nearly 50% of employees are working fully remote or on a hybrid schedule. Companies can implement a few different remote recognition programmes to help these employees feel supported and cared for, even if they don’t go into the office. Here are some ideas:

• Offer each employee a budget to buy home office equipment they may need, such as ergonomic equipment, a computer monitor, or nice headphones.
• Create a “care package” programme that sends boxes full of goodies to remote employees for holidays, service anniversaries, or just to show gratitude.
• Let remote employees choose some personalised swag so that they can feel like a part of the company.
• Set up Lifestyle Spending Accounts to provide a regular allowance that employees can spend on approved expenses. (Learn more about LSAs here!)

Remote workers may have a harder time participating in your work culture, but these remote recognition programmes will help them get involved and feel supported.

CloudFit Software has a mostly remote workforce, and they were able to bring everyone together in a culture of appreciation with Awardco. With their powerful recognition capabilities, they’ve seen a 350% increase in employee engagement.

Employee Recognition Programme Best Practises

An Ineffective vs. Effective Recognition Programme

Sometimes, seeing what a bad recognition programme looks like is a great way to ensure your programme is on the right track. Dive into the ineffective vs. effective attributes of a recognition programme below.

What Makes an Ineffective Employee Recognition Programme?

An ineffective employee recognition programme can be a missed opportunity to boost morale, increase productivity, and retain top talent. 

Here are some common pitfalls to avoid:

• Too manual. Manual recognition takes a lot of time and a lot of work, especially if there is no way to scale up as the business grows. Processes that involve multiple people and require follow-up on manual tasks are rarely as successful as they could be.
• Inconsistent organisation. Every organisation, HR team, and employee is different, so it makes sense that with recognition, some people are celebrated while others are overlooked. This inconsistency is a hurdle that leaders often don’t want to try and tackle.
• Insincere feelings. The act of recognising employees through a programme or system may feel insincere, especially depending on the rewards offered. If a company assumes that pins, plaques, or mugs are their only options, they may think recognition isn’t worth the investment.
• Lack of direction of purpose. If a programme isn’t value- or purpose-driven, employees can see right through it, and, chances are, they won’t participate. In this case, programmes quickly become another item on leaders’ to-do lists for them to unenthusiastically cheque.
• Minimal rewards. Recognition programmes that don’t really reward employees (with either actual rewards, cash, points, or just good feelings) won’t last long.

What Makes an Effective Employee Recognition Programme?

Creating a bunch of recognition programmes isn’t enough to help your employees or to see the benefits of recognition—you need to follow these best practises to make your programmes effective:

• Engage your leaders. Management needs to know why recognition matters, how best to use each programme, and how to lead by example. When everyone from executives downward supports and uses each recognition programme, it creates a culture of recognition that spreads to everyone.
• Connect programmes to your company values. A value-driven company is built on sustainable growth and innovativeness and often enjoys higher productivity and better quality services. Recognition programmes built around company values will drive behaviours that contribute and personify those values, strengthening them in the eyes of employees.
• Make recognition genuine. Employees can smell disingenuous recognition from a mile away. So make sure recognition is timely, specific, and personalised to each recipient. Programmes that provide this kind of recognition will be infinitely more effective than those that give out generic “good job” compliments.
• Ensure rewards are actually rewarding. For recognition programmes that offer rewards, they have to feel rewarding for everyone. That’s why we believe giving employees the power to choose their own reward is so important. That way, when employees are recognised, they get a reward they’re actually excited about.
• Get everyone excited. Recognition programmes are only effective if they’re being used. To that end, make sure to introduce it to employees, train them on how to get involved, and remind them frequently to recognise. And as mentioned above, leadership should lead by example.

These are the foundational principles of a good employee recognition programme. Engage leaders, reinforce values, make recognition genuine, and offer the best rewards—with these best practises, your recognition programmes will be a success.

Build and Implement an Employee Recognition Programmes that Works: 10 Best Practises to Combat Challenges

Knowing what makes the best employee recognition programmes isn’t enough to implement one effectively at your own company. That’s why we’re going to go over seven steps to follow to create and implement an effective programme tailored to your organisation. We encourage you to use these as your best practises and remain on track with your goals.

1. Understand the “Why” Behind Your Programme

What is the reason you want to implement a new recognition programme? Do you want more engaged employees? Do you want to offer more frequent rewards? Do you want to help remote employees feel more supported? Understanding the “why” gives you a goal to work toward and a direction to go.

2. Define Programme Objectives and Focus

Figure out which types of behaviours you want to reward, how you want to reward them, and which rewards you’ll offer. Also consider the medium of recognition you want (physical or digital) and whether the recognition will be public or private. These logistics will ensure that the programme has a clear goal and direction.

Understanding the programme's goals will give you a bedrock of purpose to build off of.

Figure out which types of behaviours you want to reward, how you want to reward them, and which rewards you’ll offer. Also, consider the medium of recognition you want (physical or digital) and whether the recognition will be public or private.

3. Develop a Case and Get Leadership Buy-In

Create a business case for the programme that shows the projected desired outcomes. Familiarise yourself with the benefits of recognition and show your leadership team why the new programme will be effective and impactful. (Use our handy-dandy employee recognition ROI calculator to help with this!) Once leadership believes in your vision, things will go a lot smoother.

Once leadership believes in your vision, things will go a lot smoother. Learn how to get leadership excited about elevating your recognition and rewards strategy.

4. Create a Team of Recognition Heroes

Choose a few leaders and employees to champion the new recognition programme. These employees will spread the good word and provide helpful insights. Also, ensure that they know the characteristics of effective employee recognition:

• Timely
• Specific
• Genuine
• Visible
• Value-drive

A recognition programme built on a team of knowledgeable leaders will find success much easier than one without.

5. Train Managers in the Programme

As mentioned above, leaders play a huge role in how effective a recognition programme is. If leaders and managers use the programme and lead by example, most employees will follow suit. As you start to implement a new programme, train your leaders on the why, when, and how of the programme.

6. Make It Easy and Visible for Everyone

Make recognising and rewarding a breeze for everyone. Digital tools, such as Awardco, make it easy to send genuine messages and points to peers and coworkers. Making it easy to participate in the new programme is vital for getting everyone involved.

In fact, one of our clients, Paramount, used employee recognition to strengthen and reinforce their culture during a tumultuous merger. By making recognition easy to access for everyone, Paramount succeeded in bringing their global workforce together.

7. Remind, Revisit, and Revise Regularly

Keep your new employee recognition programme on top of people’s minds by sending out reminders frequently. And as you get feedback on the programme and see the results, don’t be afraid to revise the programme or the rewards to make things more effective.

If leaders and managers use the programme and lead by example, most employees will follow suit. As you start implementing a new programme, train your leaders on the programme's why, when, and how.

8. Implement Your Recognition Programmes

Implementation needs to be an exciting event if you want the programme to stick. If the programme just slides into the employees’ day-to-day work without any fanfare, they most likely won’t notice the change, let alone buy into it. 

Here are some strategies for implementing your new recognition programme:

• Set up a countdown. For the weeks leading up to your official launch, come up with some marketing to spread the word and activities to get your people involved and excited. 
• Build a brand. Design your recognition programme with your brand’s colours and themes, and name the programme something fun (for example, The Nest Schools calls their rewards “Nest Eggs”)
• Set up an initial event. A custom programme that includes everyone with fun prizes or games is a great way to implement your programme. For example, one Awardco client, All Access Staging, reached their manufacturing workforce with a St. Patrick’s Day programme on the day of their launch—leaders dressed in green and handed out points to their employees.

During the implementation phase, communication is vital. Communicate to the company that you have a new programme, that it’s meant to recognise and reward employees, and how employees can participate in it. 

So choose the right channels for communication: 

• Send out information in your company newsletter a few times leading up to the launch and a few times after the launch
• Announce the new programme in a company all-hands meeting
• Create a hype video to share in-person and online
• Use your chosen recognition platform’s automation system to send emails out to everyone as often as you like

9. Make It Easy and Visible for Everyone

Make recognising and rewarding a breeze for everyone. Digital tools, such as Awardco, make it easy to send genuine messages and points to peers and coworkers. Making it easy to participate in the new programme is vital for getting everyone involved.

In fact, one of our clients, Paramount, used employee recognition to strengthen and reinforce their culture during a tumultuous merger. By making recognition easy to access for everyone, Paramount succeeded in bringing their global workforce together.

10. Remind, Revisit, and Revise Regularly

No matter how much preparation you did, your programme will probably need to adjust in time to suit shifting needs, new employees, or changed budgets:

• Establish a feedback loop with employees. Make sure employees have a way to give feedback on your recognition programme. Do they feel recognised enough? Are the reward options satisfying? Are they comfortable with public recognition? All this feedback can help you refine your programmes.
• Use KPIs to measure success. KPIs, such as recognition rate and employee engagement scores, can help you measure the success of your programme. Set goals and frequently track your progress toward them.
• Make iterative changes based on the above. Based on feedback and results you see, make changes to your programme to increase its effectiveness and better suit your people. 

Keep your new employee recognition programme on top of people’s minds by sending out reminders frequently. As you get feedback on the programme and see the results, don’t be afraid to revise it or the rewards to make things more effective.

The Role of Technology in Employee Recognition Programmes

Technology can help your recognition programmes be more effective and reach more people, especially remote employees. Technology not only helps you scale your programme, but it can also amplify the positive impacts of your programme by spreading the good word and making recognition more visible.

Technology can also help remind employees about recognition, nudge managers to use their recognition budget, or elongate the good feelings associated with recognition by posting it to a social feed.

Do some research into which employee recognition platform is best for you so that you can utilise technology to make your programme as effective as possible.

Maximise Employee Recognition Programmes Today

Implementing a new employee recognition programme doesn’t have to be daunting—we hope that this post has helped you learn how to choose a programme, implement it, and improve it so that you can enjoy the increased productivity, engagement, and retention of a recognition-centric company culture.