What is an employee of the month program?

An employee of the month program is a standard employee recognition method that highlights individual achievements and supports a strong employee recognition system. These employee recognition awards generally celebrate personal contributions, acknowledge employees across the team and offer a structured way to reward their hard work.

To run a successful initiative, consider setting clear eligibility criteria and defining how you’ll choose the top-performing employee each month. This strategy helps prevent focusing solely on one person and reduces the likelihood that the same person or people will win repeatedly, supporting fairness for other employees.

After setting the standards, communicate the program’s terms, prizes and recognition efforts, so team members understand how the monthly awards work. A consistent monthly award can boost morale and motivate your entire team.

Types of employee of the month programs

There are several types of employee of the month approaches that organizations can take, each tailored to different goals and company cultures. Here are some programs to consider:

• Monetary awards: Rewarding employees with bonuses, cash awards or gift cards for outstanding performance can be a standard approach. These tangible rewards, typically taxable, can be highly motivating and show appreciation for a job well done.
• Public recognition: Highlighting employees’ achievements through company-wide announcements, recognition ceremonies or features in newsletters and on social media platforms provides public recognition and strengthens morale.
• Peer recognition: Allowing team members to nominate and recognize their peers encourages a culture of appreciation and teamwork. Peer recognition programs help ensure that recognition comes from those who work closely together.
• Career development opportunities: Offering training, mentorship or professional development as part of the employee of the month reward supports employees’ growth and long-term career goals.
• Team-building awards: Recognizing entire teams for collaborative achievements can strengthen relationships and promote a sense of unity within the company.

By choosing the right employee-of-the-month program, you can ensure recognition efforts resonate with your workforce and support a positive company culture.

Please note that, at the time of this article’s writing, the companies, institutions or organizations mentioned in this article may or may not be affiliated with Indeed, and their mention in this article does not imply a business relationship with Indeed.

Benefits of employee of the month programs

There are many benefits to recognizing your employees. Here are some of the returns your business may receive when introducing an employee of the month recognition plan:

• High productivity: When companies positively acknowledge employees, they may see a noticeable boost in productivity. Highlighting top performers can reward them, motivate them to excel and inspire others to pursue similar achievements. For some team members, a bit of friendly competition can be energizing and make monthly awards especially motivating.
• Boosts morale: An employee of the month program provides employees with something to look forward to each month and helps ensure they feel appreciated. Strong morale supports a positive workplace culture and benefits the entire team.
• Increased employee retention: Satisfied employees may be more likely to stay, and greater employee engagement often results from consistent recognition efforts. Building recognition into your company culture can help retain other employees who value a workplace that celebrates hard work and achievement.
• Positive work environment: A monthly award program contributes to a positive work environment by ensuring each team member feels valued. Regular recognition can improve employee morale, constructively influence other employees and support a culture built on motivation and appreciation.

Tips on starting an employee of the month program

If your company introduces an employee of the month initiative, these tips can help you build a successful awards system:

Define clear objectives

Set clear objectives before launching an employee of the month program so you know what you want to achieve. Improving retention, boosting employee morale or adding some fun to the workplace all require different approaches. For example, if teamwork is a core company value, you might recognize teams rather than having one employee each month.

This clarity can support a successful employee of the month strategy and help it run smoothly. You may also schedule a career development discussion with award recipients. A career development discussion based on their recognition can help employees plan future goals and build new skills.

Have specific criteria

A strong employee of the month program requires clear eligibility criteria and selection standards. Without transparent guidelines, a month-long recognition system can feel arbitrary and lose impact. Define the behaviours and accomplishments you want to reward and explain the criteria to staff so other employees understand how to participate.

Clear expectations support fairness, motivate employees and ensure recognition extends beyond just the winner.

Involve peers

Peer recognition helps avoid unhealthy competition and keeps the program fair. Allowing coworkers to nominate a team member reduces concerns about favouritism and ensures other team members are recognized, not just a single individual.

Peer nominations help every team member feel valued and foster stronger working relationships. This approach strengthens teamwork and creates a supportive environment where employees appreciate one another’s contributions.

Set attractive awards

The awards you choose should motivate employees and appeal to different interests. Combine monetary and non-monetary incentives, such as bonuses, gift cards, employee recognition awards or unique experiences. Rotate rewards to keep them engaging for star employees with diverse preferences.

Ask employees for input before finalizing the prizes to understand what motivates them. Set clear eligibility rules, the frequency at which a person can win and any limits related to job title or employment duration.

Examples of employee of the month awards include:

• social media appreciation posts with the employee’s name and job title

• letters recognizing employees’ efforts

• personalized gifts such as mugs or t-shirts

• paid vacation days or time off

• monetary rewards such as bonuses, cash awards or gift cards

• tech or workplace equipment upgrades

• home office makeover options for remote employees

• charity donations in the award winner’s name

• website or newsletter features

• certificates, tokens or plaques

Be creative

A creative monthly award program may help keep employees engaged. Try fun names, such as the Ultimate Team Player Award, or incorporate new monthly ideas to maintain excitement. Make the announcements memorable and consider offering public recognition to highlight employees and motivate others.

Recognizing star employees or pairing the announcement with a team-building event can boost morale and encourage participation.

Measure impact

After a few months, evaluate the initiative’s effectiveness to ensure it supports your objectives. Check whether increased employee engagement is visible and if employees feel satisfied with the results. Sending a survey can help you understand how employees feel and identify opportunities to improve the awards program.

A thoughtful employee of the month program can strengthen your company culture by recognizing hard work, motivating employees and helping every team member feel valued. By setting clear objectives, defining fair eligibility criteria and choosing awards that resonate with your workforce, you can create a month-long awards system that supports engagement and improves morale across the team.