6 Types of Employee Recognition and Rewards Programs That Really Work (2024)

Posted byStephen Spiegel on Nov 25, 2020

6 Types of Employee Recognition and Rewards Programs That Really Work (1)

Ready to start rewarding and recognizing your workers? Learn about 6 methods that will keep employees engaged and motivated.

There’s no denying that people respond to being recognized and rewarded. But pay close attention to how you do it because these programs will change your company’s culture and the dynamics of the teams you’re recognizing. Whether you want to provide tangible rewards to employees or just show them you care, there are many different approaches you can take to foster the kind of culture you want the program to create.

Here’s an overview of the top recognition and rewards program formats to help you decide which way to go:

      • Contests and gamification
      • Points systems
      • Rewarding top drivers of success
      • Public recognition
      • Gifts and bonuses
      • Peer-to-peer recognition
6 Types of Employee Recognition and Rewards Programs That Really Work (2)

1. Contests and gamification

First, let’s look at contests you can implement using gamification techniques. If you want to do a weekly contest with your customer service team, you can implement a contest where the employee who closes the most tickets by Friday afternoon will receive a prize, like a gift card or an extra day off work.

This is an example of how incorporating gamification techniques — elements like competition and finishing a challenge — can help you inspire your teams. They’ll feel a friendly sense of rivalry, and each week they will try to reach that top spot on the leaderboard.

2. Points systems

Another type of rewards program you can try is a points system. Like a contest, you give employees a certain number of points or stars when they hit a goal, reach a key number, or continue to do something right. When employees reach target point levels, they receive rewards. This method can be effective to encourage short-term wins and behaviors that lead to reaching long-term goals and success.

3. Rewarding top drivers of success

Another way to reward and recognize employees is by keeping track of those who directly contribute to company success. The most obvious example of this is rewarding a member of the sales team when they make the most sales. They are directly impacting the company’s bottom line, and that should be rewarded. This approach can help you boost engagement and motivation for team members who have the biggest influence on business growth.

4. Public recognition

Sometimes a prize doesn’t have to be an experience or a gift. You can simply recognize an employee in a public format for a job well done. Create an article or blog post that highlights what they accomplished, announce the win in a company-wide meeting, or post about them on your social media channels.

You’ll find that employees just like to be recognized, and these small actions allow them to feel accomplished. Other employees will want that same recognition and work harder to be noticed.

5. Gifts and bonuses

Your rewards and recognition program doesn’t have to be complicated. Think of simple gifts that your employees will appreciate, like a gift card to a coffee shop or tickets to a sporting event. But also think through work benefits they could receive when they meet a certain goal. Maybe they’ll get a boost on their next paycheck or a priority parking spot for a certain period of time. The company could pay for them to take a weekend trip or to have dinner with executives.

When you’re rewarding an entire team, pay for lunch for the employees, whether at a restaurant or delivered into the office. These gestures don’t have to break the bank for the company, but make sure you think about rewards that workers will actually want.

6. Peer-to-peer recognition

Another way to engage employees is to have them recognize each other. Often the best judge of an employees’ success is someone who works right beside them. Allow workers to give shout outs to one another, whether in meetings or in an online space or recognition software. Even if it’s only a piece of positive feedback, hearing those things from someone an employee works with every day can boost motivation and confidence.

Peer-to-peer recognition can also build and improve company culture, creating an environment where encouragement and collaboration are regular aspects of the job.

Using a recognition platform

These are all effective types of rewards and recognition programs that will get you started with your own strategy. Every team and company will be different, with varying priorities and goals. Implement the method that will most inspire and engage your workers and align with the organization’s values and vision.

When you’re unsure where to begin, use a platform like Crewhu, which combines employee recognition and rewards with customer service management. Collect feedback from employees and track key data so you can start rewarding great performances. Use the Crewhu Café, which is a newsfeed where employees can interact and recognize one another in a public format.

Learn more about how to keep your employees engaged and how to start your recognition program by downloading our guide to the 3 Cornerstones of Employee Rewards.

Topics:employee recognition,gamification,Employee Rewards Programs

6 Types of Employee Recognition and Rewards Programs That Really Work (2024)

FAQs

What are the types of rewards and recognition for employees? ›

Types of Employee Rewards
  • Employee of the Month Awards. ...
  • Work Anniversary Awards. ...
  • Teamwork Awards. ...
  • Sales Awards. ...
  • Employees' Choice Awards. ...
  • Leadership Awards. ...
  • Customer Service Awards. ...
  • Top Performer Awards.

What are the best employee recognition programs? ›

The 10 Best Employee Recognition Platforms Comparison Chart
ToolFree Option
1Nectar Best employee recognition and rewards platform for strengthening employee retentionFree demo available
2Motivosity Best employee recognition platform for empowering employees to reward each otherFree demo available
8 more rows
Feb 22, 2023

What are different types of recognition programs? ›

6 Recognition types
  • Public. Public recognition involves praising an employee's work in a venue that other people can view. ...
  • Private. In contrast to public recognition, private recognition involves acknowledging an employee's performance only to them. ...
  • Peer-to-Peer. ...
  • Structured. ...
  • Milestones. ...
  • Team or project.
Dec 2, 2022

What types of rewards and or recognition would be the most effective in motivating the employees to achieve the goals? ›

Offer financial rewards, non-monetary rewards, and recognition. There are many different types of rewards to motivate employees, but reward systems that include a combination of cash and non-monetary rewards as well as social awards, such as recognition and praise, have the greatest impact on employee performance.

What are the best reward and recognition programs? ›

10 Companies with the Best Employee Reward and Recognition Programs
  1. Airbnb: Workplace as an Experience. ...
  2. Zappos: Best Peer-to-peer Rewards. ...
  3. Typeform: Use of Merit Money. ...
  4. 4. Walt Disney World: Legacy Awards. ...
  5. HP Inc: Reward for Good. ...
  6. Unilever: Unilever's Heroes Award. ...
  7. Southwest Airlines: Southwest's “Attitude of Gratitude.”

What is an example of an employee reward program? ›

Employee recognition programs are methods of recognizing the accomplishment of deserving employees or teams in a company. Examples include gift cards, company outings, and anniversary celebrations. These activities aim to boost workers' morale, retain talent, and create a bond between workers and the organization.

What kind of rewards employees prefer the most? ›

When to Reward Employees
  • Good Performance. ...
  • Special Achievements. ...
  • Employee Anniversaries. ...
  • The Holidays. ...
  • Just to Say Thank You. ...
  • Monetary Rewards. ...
  • A Gym Membership or Other Lifestyle Perks. ...
  • Verbal Praise.
Aug 5, 2021

What are the 4 types of reward systems? ›

4 types of employee reward systems
  • Monetary. You can create a reward system based on monetary compensation, like a bonus. ...
  • Non-monetary. For teams that prefer perks other than bonuses, a non-monetary rewards system may help motivate them. ...
  • Assistance. ...
  • Recognition.

What are the 3 types of recognition? ›

4 Types of Recognition for Employees
  • Informal recognition. Informal recognition includes every form of appreciation that isn't planned in advance by your organization. ...
  • Formal recognition. Formal recognition encompasses many forms of appreciation that organizations have practiced for decades. ...
  • Social recognition.
Dec 17, 2021

What are examples of recognition for employees in the workplace? ›

Here are a few employee recognition message examples you could share with someone on your team whose performance calls for some shine: Your outstanding performance is an inspiration to us all. Keep up the amazing work! Thank you for always putting your best foot forward!

What is the best way to provide recognition and reward to employees? ›

Here are 9 low-cost ways to reward employees:
  1. Express thanks with a public thank you. ...
  2. Give a hand-written note. ...
  3. Offer time off. ...
  4. Give small gifts. ...
  5. Cover commuting costs. ...
  6. Offer chair massages. ...
  7. Feature top employees on your company blog or newsletter. ...
  8. Schedule an all-company activity.

What are four formal reward and recognition programs you could use to motivate staff? ›

But there are a number of ways to attract and keep top talent, and to keep them happy and engaged while they're with you.
...
What kind of employee rewards should you offer?
  1. Social recognition. ...
  2. Career coaching and professional development. ...
  3. Additional flexibility. ...
  4. Gift cards and trendy items.
Feb 14, 2017

Which is the best method to make reward system more effective? ›

Get employees involved.

If you ask employees to help design the system, you'll get some good ideas plus employees will feel vested in the rewards when they are handed out. Everyone will know exactly what's needed to earn specific rewards. This also ensures that your reward system will match your employee demographics.

Which is the most commonly used reward in organizations? ›

The most commonly used reward in the organizations is the one that is monetary based. While, most often than not, companies prefer to make use of such rewards that contain some financial value, some companies today are starting to utilize the non-financial means of rewards as well.

What are five rewards examples? ›

Examples of rewards that are this category usually include:
  • Bonus. A bonus is a financial incentive that employees receive in addition to their set salary or wages. ...
  • Profit-sharing. ...
  • Stock options. ...
  • Merit pay. ...
  • Fringe benefits. ...
  • Public recognition. ...
  • Paid leaves. ...
  • Professional development training.
May 2, 2022

What is the best example of an employee benefit and incentives? ›

Workplaces typically give their full-time employees a certain number of paid days off throughout the year to use as vacation time or in the case of any emergencies. Because PTO is a valuable and protected aspect of an employee's benefits, offering extra paid time off as an incentive can be highly motivating.

What are the 7 types of employees? ›

Types of employees
  • Full-time.
  • Part-time.
  • Casual.
  • Fixed term.
  • Shiftworkers.
  • Daily hire and weekly hire.
  • Probation.
  • Apprentices and trainees.
Jul 12, 2022

What are the three main ways of rewarding employees? ›

The 3 Key Types Of Rewards
  • Intrinsic rewards: Rewards that are non-tangible but results in higher levels of job satisfaction. ...
  • Extrinsic rewards: Tangible rewards that staff receive upon doing a good job. ...
  • Financial rewards: Positively adding to the overall employees' financial status.
Dec 24, 2020

What are the 6 elements of a total rewards system? ›

“Total Rewards encompasses the elements – compensation, well-being, benefits, recognition and development – that, in concert, lead to optimal organizational performance.

How many types of reward systems are there? ›

' Rewards schemes may include extrinsic and intrinsic rewards. Extrinsic rewards are items such as financial payments and working conditions that the employee receives as part of the job.

What are the best recognition strategies? ›

The following 10 specific recognition culture strategies are effective ways to recognise and reward your employees:
  • Make it personal. ...
  • Provide opportunities. ...
  • Magnify recognition. ...
  • Offer beyond-the-call-of-duty perks. ...
  • Motivate with financial incentives. ...
  • Give holiday rewards and bonuses. ...
  • Facilitate peer-to-peer recognition.
Feb 22, 2017

What is the best form of recognition? ›

Structured recognition has the most potential to positively affect employee engagement because it's planned and formalised. Recognition in this form is typically handled by managers or leaders and can include things like: "Employee of the Month" awards.

What type of recognition motivates you the most? ›

Personal recognition strengthens the bond between the recognizer and employee being recognized. An Aon Hewitt survey of millennials found that they are most satisfied when recognized with thank you notes and verbal thank-yous. The best part? Personalized recognition is easy to achieve.

What makes a successful recognition program? ›

Recognition programs are most successful when they are aligned with the organization's mission, vision, values and goals. Employees can tell if there is—or is not—a clear connection between what management says is important and what is actually rewarded at work.

What is rewards and recognition program for employees? ›

An employee reward and recognition program is a system that an organization sets up to celebrate employee successes in an open forum and reward them with monetary and non-monetary perks for meeting goals or embodying core values.

What are 5 examples of rewards you give to team members for their effort contributions and or achievements? ›

Here are 15 great ways to reward your employees for a job well done:
  • Give them handwritten notes. ...
  • Allow them to leave early. ...
  • Provide them with a health club membership. ...
  • Bring them breakfast. ...
  • Let them work from home for a day. ...
  • Watch a movie in the office. ...
  • Send them on an adventure. ...
  • Provide them with event or festival tickets.
Apr 17, 2020

What types of rewards would motivate workers in an organization? ›

Depending on what motivates employees, there are different types of rewards organizations can provide.
...
The 6 types of employee rewards
  • Intrinsic rewards. ...
  • Extrinsic rewards. ...
  • Financial rewards. ...
  • Non-financial rewards. ...
  • Employee incentives. ...
  • Wellness-based rewards.
Nov 22, 2022

How do you reward excellent performance? ›

Here are some creative ways to reward employees for good performance:
  1. Align rewards with performance. ...
  2. Provide unique rewards. ...
  3. Recognize major and minor achievements. ...
  4. Reward teamwork. ...
  5. Offer personalized and specific recognition. ...
  6. Invest in professional and personal development. ...
  7. Donate to a charity or cause. ...
  8. Create fun surprises.
Nov 4, 2022

What is the best quality of an effective reward incentive? ›

A well-designed incentive program has a clearly defined goal, establishes rules, makes rewards visible, focuses on goal commitment, embraces competition and leverages risk, among other aspects.

What rewards do employees value the most? ›

Employees value three things more highly than anything else: time, choice and money, so I have looked at each of these in detail to help you to assess what might work in your company.

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