Essential Things to Know About Employee Recognition Programs


Rewarding your employees to recognise their contributions is essential. This gesture leads to quite a lot of benefits to your employees, which indirectly benefit your company. There are numerous ways to reward employees, such as giving cash, physical gifts, and even doing company parties.

One of the most popular rewards that employees get from their bosses is cash gifts. Although there is nothing wrong with giving cash outright, there is a better alternative wherein giving employee benefits will be much more effective and efficient. This is none other than employee recognition programs.

If you are searching for methods on how to reward your employees effectively, you have come to the right place. Here are the essential things about employee recognition programs.

What are Employee Recognition Programs?

According to the Rochester Institute of Technology, employee recognition programs play a crucial role in a business’s growth. They give employers an effective system to reward and recognise their top-performing employees.

Employee recognition programs can help your company have standards of performance and establish the appropriate guidelines for evaluating employee behaviour.

How Do Employee Recognition Programs Work?

Once you have selected a particular employee to reward, that employee will receive a recognition certificate. The recognition certificate describes the reason why they are being rewarded, and this certificate could either be a printed or digital one.

Once they receive the certificate, a separate electronic gift card will then be given. This gift card shows how much you appreciate your employee’s contribution, which they can use to pay for certain goods or services.

Benefits of Recognition Programs

There are numerous benefits and advantages of recognition programs for both the employees and the company. Some of these benefits include:

Morale Boost

The rewards and employee benefitswill make your subordinates feel recognised and appreciated for their contributions to the company. This is essential because they will have a feeling of significance and that their company values them.

According to an article, employee benefitsmake employees happy. This will lead to a more positive work environment because their morale is boosted.

Tax Exemptions

Giving cash directly to your employees as a form of reward is subjected to the payroll tax, fringe benefits tax, and employee PAYG. However, if you issue rewards through an employee recognition program, the gesture can be exempted from tax.

By giving your employees an electronic gift card through a recognition program, you still give them cash credits while also providing your company with tax benefits.


Rewarding your employees is certainly a positive thing to do. However, employees that don’t get rewarded might feel left out and cause an imbalance in the workplace. The employee recognition program is the perfect way to reward an employee discreetly.

Also, having a recognition program for handing out rewards discreetly shows that you value your employees’ privacy and confidentiality. This is because some employees would prefer getting rewards in private.

From the reasons mentioned above, having an employee recognition program is undoubtedly beneficial. Not only will it be beneficial to your employees but to the company as well. Hopefully, this article has helped you realise the significance of employee recognition programs.


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