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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

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7 min read

Your organization’s most valuable asset is its employees. Whether they operate behind the scenes or interact daily with customers, your team plays an integral role in your company’s success. Recognizing their contributions and celebrating their wins is a great way to keep your employees happy, engaged and loyal to your organization. 

In this article, we will

  • Define employee recognition and examine why it matters to your team.
  • Explore employee recognition ideas and ways to create a culture of recognition.
  • Identify important things to consider when implementing an employee recognition program.

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What is employee recognition? 

Employee recognition occurs when a company shows their appreciation for the contributions or achievements of an individual or team. It can involve praise, monetary reward or another extrinsic motivator. This recognition can come from an organization’s leadership or one’s peers. 

What may employees be recognized for? 

Your organization may choose to recognize a variety of behaviours and achievements. Some commonly celebrated employee contributions include:

  • Going the extra mile: If a team member consistently performs at a high level, exceeding expectations, they deserve recognition. This includes those who go above and beyond to provide excellence in customer service or to achieve company goals.
  • Reaching goals: Celebrating team members who reach company goals or milestones is another viable option. Whether it’s a work anniversary, completing a training course or meeting a sales target, employees thrive on recognition.
  • Exhibiting positive behaviours: Does an employee demonstrate great teamwork, a positive attitude or an ability to encourage others? It may be time to recognize these desirable characteristics and how they contribute to your company’s overall success.
  • Thinking outside the box: Employees who use innovative thinking to create new products, solve problems or design new company initiatives also deserve recognition. 

What are the benefits of employee recognition? 

When deciding if you should introduce an employee recognition program, it is wise to identify the benefits to both your employees and your organization. Celebrating individual team members or entire teams can cultivate a happy workforce, but employee recognition also boasts some unexpected perks. Here are some of the benefits of recognizing your workforce:

  • Decreased turnover : An appreciated employee tends to be a happy employee. If a team member feels undervalued or unappreciated, they will become less loyal to your organization. In turn, they may feel tempted to seek out other employment. This can lead to a loss of prized talent and increased recruitment and onboarding expenses. On the other hand, employee recognition can lead to improved employee retention.
  • Increased engagement: When an employee is recognized for a positive behaviour or accomplishment, they become more engaged and motivated. This boosted engagement can increase their productivity, job satisfaction and company loyalty.
  • Elevated happiness: Everyone longs to feel a sense of purpose — like they are making a positive contribution to the world. Receiving recognition at work lets your employees know that their efforts are making a difference within your organization. This increases levels of job satisfaction, creating a happier and healthier workforce. 
  • Improved employer image. Satisfied employees can enhance your organization’s public relations efforts by saying positive things about your company in person and online. This can improve your employer branding and reputation, helping you attract top talent. Furthermore, customers tend to favour companies that are known for treating their employees well. 
  • Enhanced corporate culture: While cultivating a culture of recognition can boost engagement, productivity and loyalty, recognizing employee contributions can also nurture higher levels of trust. When employees trust leadership to have their best interests at heart, they are more likely to welcome and successfully navigate changes in the workplace. A positive work culture also encourages teamwork, collaboration and creative thinking. 

What should you consider before creating an employee recognition program?

Before initiating a corporate employee recognition program, it is wise to create a framework that clearly communicates what this program will look like, what it will celebrate, and what form this recognition will take. Here are some tips to help you instate a viable recognition program: 

  • Do not delay. It is important to recognize an employee’s contribution in a timely fashion. A celebration should never seem like an afterthought. If someone has reached a goal, exhibited positive behaviours or surpassed expectations, recognize them right away. 
  • Appreciate the small stuff. While it’s necessary to celebrate big achievements, a wise leader also recognizes smaller contributions. These frequent fist-bumps can motivate your team, encourage positive behaviours and cultivate a culture of recognition.
  • Clearly define the accomplishment. When recognizing an employee’s efforts, clearly specify their achievement. How did their efforts support the company’s goals? By pinpointing their positive behaviours, they will be more likely to replicate them. Furthermore, it can lead to others adopting the same conduct.
  • Choose the right form of recognition. Not everyone wishes to be recognized in the same way. Some thrive in the spotlight, while others prefer a low-key approach. When selecting a form of recognition or a reward, choose one that is meaningful to the individual being recognized. 
  • Celebrate company-wide. By recognizing an employee’s achievements company-wide, you are not only boosting that individual’s self-esteem. You are also creating a wider culture of recognition and showing how everyone’s efforts contribute to the company’s overall success. 

What are some examples of employee recognition ideas? 

If you’ve decided it’s time to increase your company’s employee recognition efforts, you will be happy to know that there is an inexhaustible number of ways to celebrate your workforce. Here are 10 employee recognition ideas:

  1. Employee of the month. If an “employee of the month” initiative is done properly, it can motivate team members to perform to their maximum potential. Be sure to clearly state the requisite criteria for earning this title, include peers in the nomination process, and display this honour in a prominent place. 
  2. Travelling trophy. Much like the baton in a relay race, you could have employees hand off a company trophy. Whether you opt for the image of a corporate mascot or some other fun figure, it can be passed from one employee to the next. The recipient keeps it in their possession for a set amount of time and hands it off to the next person being recognized.
  3. Corporate merchandise. Does your company host an impressive selection of company swag? If so, you could let a recognized employee select items from your company’s catalogue. Not only will your team member get a product they can use, but they will inadvertently promote your organization every time they use it.
  4. Tasty treats. Whether you are recognizing the achievements of an individual or a team, food is always an appreciated reward. You could take a deserving employee out for lunch or reward a team with a catered meal.
  5. Novel experience. When rewarding a team or group of employees for a job well done, you may want to present them with an experiential reward. This enables them to form positive memories associated with your organization while strengthening the bond between team members. Examples of this form of reward include sporting event tickets, driving an exotic car, a music concert or theatre performance, or a wine tour. 
  6. Team outing. A great way to recognize a team or group of employees is to offer them an outing. A relaxing social activity like a trivia night, a beach day, laser tag or bowling is more than just a great reward — it’s an effective team-building exercise as well.
  7. Public shout-outs. Does your company boast a strong social media presence? If so, you may want to compliment an employee for a job well done on your corporate Facebook, Instagram and LinkedIn accounts. This publicly recognizes your employee’s good work while elevating your company’s online image. 
  8. Employee appreciation day. If your workforce has met or exceeded expectations, it may be time to recognize the whole team with an employee appreciation day. This could incorporate a team outing or an experiential reward. It’s also a great chance to recognize individual achievements.
  9. Talent Show. Your highly skilled team likely possesses talents you don’t even know about. A great team reward could include a team talent show — an opportunity for your workforce to strut their stuff and demonstrate their hidden abilities.
  10. Time off. Everyone loves time off with pay. A great way to recognize an employee’s achievements is to offer them a day or an afternoon off. 

Your employees long to feel valued and have their efforts acknowledged. Thankfully, by following a few tips, you can make employee recognition a regular part of your company culture. Have fun and use your imagination. The benefits to your team and your organization’s success will be worth the effort.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.