#1 Guide to Employee Recognition and Rewards Program in 2024

In today's fast-paced work environment, businesses seek solutions that effectively align recognition efforts with employee development goals. Employee appreciation programs have become vital for creating a culture where employees feel inspired and valued for giving their all. As organizations grow, it's increasingly important to have flexible systems that can incorporate awards for employee recognition. Matter understands that recognition is key to creating a supportive workplace culture. This guide explores the impact and significance of employee recognition and rewards programs tailored to your company's needs.

What is employee recognition and rewards?

Employee recognition and rewards are essential tools that organizations use to acknowledge and appreciate the efforts and achievements of their employees. At its core, employee recognition refers to the acknowledgment of an employee's contributions, be it through verbal praise, public recognition, or more structured recognition programs. Employee rewards, on the other hand, are tangible incentives provided to employees for meeting specific goals or delivering exceptional performance. This can include bonuses, gift cards, extra time off, or even personalized rewards tailored to an individual’s preferences.

Both recognition and rewards serve as key motivators that not only boost employee morale but also improve engagement and job satisfaction. When employees feel recognized, they are more likely to perform at their best, stay motivated, and remain loyal to the organization. Recognition can come in various forms—peer-to-peer kudos, manager acknowledgments, or even systematized recognition through specialized platforms like Matter. These platforms simplify the process of offering both recognition and rewards, making it easier for companies to cultivate a culture of appreciation.

In summary, employee recognition focuses on acknowledging individual or team efforts, while rewards provide concrete benefits in response to these efforts. Together, they form a dynamic duo that drives higher levels of productivity, engagement, and retention within the workplace​​.

Why is employee recognition and rewards important for employees?

Employee recognition and award programs are critical for fostering a pleasant workplace culture and increasing employee engagement. The motivation and commitment of employees to their duties are directly influenced by the recognition and appreciation they receive for their efforts. Frequent recognition boosts morale and encourages desired behaviors that align with the company's core values and organizational goals.

Here are a few ways recognition positively impacts employees:

• Boosts motivation and performance: Recognized employees are more inclined to remain motivated and contribute to the company's objectives. This recognition also fosters a sense of accomplishment, prompting them to go the extra mile.
• Increases employee retention: A strong rewards and recognition program reduces turnover by making employees feel appreciated and connected to the company. Employees who feel valued are less likely to leave for other opportunities.
• Strengthens company culture: Regular recognition reinforces company values and desired behaviors, helping to build a cohesive team and a positive work culture. Employees who feel appreciated are more likely to embody the organization's culture and contribute to a thriving workplace.
• Enhances employee morale and job satisfaction: Recognizing employees for their contributions, whether through public recognition or personal feedback, improves morale and leads to higher job satisfaction. Employees feel appreciated, boosting their engagement and overall workplace happiness.
• Encourages collaboration and innovation: Recognition fosters a collaborative environment where team members celebrate each other's successes. It inspires employees to bring forward new ideas, knowing their contributions will be acknowledged.

By integrating regular recognition into the work environment, companies can establish a culture where employees feel appreciated, motivated, and aligned with the organization's objectives. Whether through monetary incentives, social recognition, or personalized rewards, acknowledging employees' achievements is key to building an engaged and loyal workforce.

Pros and cons of employee recognition and rewards

Creating an employee recognition and rewards program can feel like unlocking the secret to a happier, more engaged workforce. Who doesn't love a little acknowledgment for their hard work? However, like any initiative, it comes with its own set of perks and potential pitfalls. When done right, an employee rewards and recognition program can turn ordinary days into career highlights, but without careful planning, they can cause frustration instead of motivation. Let's explore the highs and lows:

Pros of employee recognition and rewards:

• Boosts employee morale: Regular recognition encourages employees to feel valued and motivated.
• Improves retention: Recognizing achievements makes employees feel connected and loyal, reducing turnover.
• Strengthens company culture: Aligning incentives with corporate principles reinforces constructive actions and fosters a sense of community.

Cons of employee recognition and rewards:

• Potential inequality: Without clear guidelines, recognition can seem biased or unfair, leaving some employees feeling overlooked.
• Cost considerations: Programs can become expensive if not well-managed depending on the rewards chosen, such as monetary incentives.
• Inconsistent implementation: If not embedded in the company's culture, recognition efforts may feel sporadic and lose impact over time.

Companies can create a program that energizes employees and supports the organization's success by focusing on meaningful recognition and ensuring consistency.

Employee recognition and rewards statistics

Employee recognition and incentive programs are essential to engagement, retention, and productivity rather than supplementary benefits. Studies have consistently shown that companies with strong employee rewards and recognition programs are better positioned to create a thriving workplace culture. Here's what the numbers reveal:

1. 79% of employees leave their employment for lack of appreciation, making it one of the leading causes of turnover. Employees who don't feel recognized become disengaged, leading to higher attrition rates.
2. Employee engagement increases by 15% when employees receive frequent and meaningful recognition to motivate employees. Engaged personnel are more motivated and devoted to achieving the company's objectives.
3. Companies with a robust employee rewards and recognition program report a 31% lower turnover rate than those without. This translates to significant cost savings, as retaining employees reduces the need for continuous hiring and training.
4. Recognition boosts performance: Businesses using an employee rewards and recognition program with regular recognition practices are 12 times more likely to achieve stronger business outcomes. Recognizing employees for their contributions doesn't just make them feel valued; it encourages them to align their efforts with the company's core values​.

These statistics emphasize the undeniable impact of employee rewards and recognition on overall business success. Companies that invest in recognition strategies see improved employee morale, higher retention, and a more engaged workforce. Recognition can transform a company's culture through employee praise, monetary incentives, or personalized rewards.

Trends in 2024 for employee recognition and rewards

In 2024, employee recognition and rewards programs are adapting to new workplace realities, with several emerging trends shaping the way organizations approach recognition strategies. These trends emphasize flexibility, inclusivity, and aligning rewards with employee preferences and company culture. Let's dive into some key trends that are influencing how companies approach recognition this year:

1. Frequent, personalized recognition: One of the biggest shifts in 2024 is the move towards frequent recognition. Employees want to be recognized regularly and in a way that resonates personally. Organizations are shifting from traditional annual awards to more meaningful rewards, such as personalized rewards that celebrate everyday contributions. Recognition is no longer just about the big moments; small, regular expressions of appreciation make employees feel more connected and engaged.
2. Recognition tied to well-being: Companies acknowledge the close correlation between employee well-being and mental health and their attitudes toward employment. As a result, employee recognition programs are evolving to incorporate recognition of non-work achievements, like maintaining work-life balance or showing resilience. This new trend highlights the importance of acknowledging employees for more than just performance, focusing on their overall contribution to the workplace's positive culture.
3. Social recognition and peer feedback: Social recognition is gaining momentum as companies encourage employees to celebrate each other's achievements. Platforms are making it easier for peers to provide public recognition, offering a wider range of ways to engage in recognizing employees. Peer-to-peer recognition is now a crucial part of many recognition programs, as it fosters collaboration, encourages team members to lift each other up, and creates a sense of community within the organization.
4. Integration with remote work tools: With the rise of remote employees, recognition platforms are increasingly integrating with collaboration tools like Slack, Microsoft Teams, and Zoom to ensure recognition reaches employees no matter where they are. This trend is essential for creating an inclusive employee rewards and recognition program that works seamlessly for both in-office and remote employees, making recognition feel organic and integrated into daily workflows.
5. Data-driven recognition strategies: Companies are now using data analytics to fine-tune their rewards programs. Organizations can tailor their recognition strategies by analyzing employee feedback and engagement trends to better align with what motivates their workforce. Metrics help HR leaders understand which types of recognition resonate most and how to create more effective employee rewards and recognition programs that drive performance and employee engagement.

These trends show how companies adapt their recognition programs to create more inclusive, flexible, and impactful systems that recognize achievements and support employee morale and well-being.

Strategies and ideas to build employee recognition and rewards

More than simply awarding employees, establishing an effective employee recognition and rewards program involves cultivating an environment where they feel appreciated and motivated. The key is to reward employees by implementing a recognition strategy that resonates with your employees and aligns with your company's values. Here are some strategies and ideas to help you build a successful program:

1. Personalized rewards: One size doesn't fit all. Some employees might love public praise, while others prefer a personalized reward that reflects their interests or achievements. Offering flexible and personal rewards, such as customized gifts or charitable donations, makes recognition feel more meaningful and personal.
2. Incorporate peer-to-peer recognition: Encourage employees to celebrate each other's wins. Peer recognition promotes a sense of community and collaboration, making everyone feel involved in the process. Whether through informal shoutouts or structured programs, recognizing employees from all levels can greatly impact company culture.
3. Public recognition in team meetings: Highlighting accomplishments during a company meeting is a simple yet effective way to show employee appreciation. This public recognition rewards the individual and reinforces company values across the entire team. It's a great way to recognize top performers while also encouraging others to contribute.
4. Frequent recognition: Don't wait for yearly reviews to recognize efforts. Implement frequent recognition initiatives like monthly or even weekly shoutouts, employee awards, or social recognition to keep employees engaged and motivated.
5. Use data and feedback to tailor your program: Leverage employee feedback to understand what motivates your team and what types of recognition resonate most. This helps you fine-tune your recognition program and deliver meaningful rewards that align with employee needs and expectations.
6. Integrate recognition with development goals: Tie recognition to employee development goals. For example, rewarding employees for hitting milestones in their professional growth or for contributing to a successful project can be highly motivating. This not only acknowledges their work but encourages ongoing improvement and growth.

By incorporating these strategies, companies can create a dynamic and engaging employee recognition program that boosts employee experience and morale, enhances performance, and strengthens company values.

Important metrics for employee recognition and rewards to measure impact

Measuring the success of an employee recognition and rewards program requires using specific metrics that give insights into how well the program is driving employee engagement and contributing to overall business goals. Here are some key metrics to consider:

1. Employee engagement scores: Measuring employee engagement is critical to understanding the effectiveness of your recognition program. Surveys and tools like engagement pulse checks help track how recognized and motivated employees feel. Higher engagement scores typically correlate with more frequent and meaningful recognition.
2. Retention and turnover rates: One of the biggest benefits of a well-implemented recognition program is its ability to reduce employee turnover rates. Tracking retention rates over time allows you to see whether recognition efforts are helping to retain top talent and reduce costly turnover.
3. Employee feedback: It is critical to gather employee input regarding their satisfaction with the recognition program. This can be accomplished using surveys, focus groups, or feedback channels. Knowing how employees feel about the program helps you adjust it to better meet their needs and improve overall satisfaction.
4. Frequency and type of recognition: Measure how often employees are being recognized and in what ways (e.g., public praise, monetary incentives, peer-to-peer recognition). Tracking this data helps ensure recognition is consistent and reaches all employees, not just top performers.
5. Performance improvement metrics: Analyzing whether employee performance has improved after recognition can show whether the rewards motivate employees to achieve higher productivity and engagement levels.
6. Manager participation rates: Measuring managers' engagement in recognition efforts is essential. The more involved managers are, the more likely the program will have a broader impact on creating an ideal company culture and improving employee experience.

By using these metrics, companies can gain valuable insights into the success of their recognition strategies and continuously improve their employee rewards and recognition programs to ensure they align with both employee and organizational goals.

Top 5 employee recognition and rewards platforms

1. Matter

About Matter: Matter is a dynamic employee recognition platform that seamlessly integrates with Microsoft Teams and Slack, thereby providing a natural integration of peer-to-peer recognition into daily workflows. Employees can send customizable kudos cards that reflect company values or celebrate everyday achievements, promoting a culture of appreciation. Matter also includes automated features like Feedback Friday, which encourages weekly recognition and milestone celebrations for birthdays and work anniversaries, ensuring consistent and timely acknowledgment. The platform is meant to be simple to implement in only 2 minutes. It requires minimal customization, making it an excellent alternative for businesses looking for a low-maintenance yet effective solution for employee recognition.

Matter provides flexible reward options, such as digital gift cards, prepaid Visa/Mastercards, and charity donations, ensuring that employees receive meaningful rewards tailored to their preferences. With a coin system that resets weekly, Matter encourages frequent and authentic recognition, which helps boost employee engagement and retention. Its ease of use, automation, and flexibility make Matter an excellent choice for organizations aiming to foster a positive workplace culture.

Matter main features:

• Slack/Teams integration: Seamlessly integrates with Slack and Microsoft Teams for real-time recognition.
• Customizable kudos cards: Tailor recognition to align with company values and individual achievements.
• Feedback Friday: Encourages weekly peer-to-peer recognition with automated reminders.
• Automated milestones: Automatically celebrates birthdays, work anniversaries, and other key events.
• Flexible reward options: Includes digital gift cards, prepaid Visa/Mastercards, and charity donations.

Matter pricing:

• Free Forever: $0/user/month
• Basic: $1/user/month, billed annually
• Pro: $3/user/month, billed annually
• Pro + Surveys: $5/user/month, billed annually

For more information, please visit the Matter pricing page.

Matter G2 score: Matter holds a G2 score of 4.7/5 based on user reviews.

Notable Matter customers: Sephora, Petco, Shell, Siemens, JiffyLube, Microsoft, SXSW, Bolt, True Classic, and Carrier.

What Matter customers are saying on G2: "I was astonished at the start because I was used to feedback tools being very unemotional and static. That's why I love Matter, because it provides necessary structure for an organization while allowing feedback to be enjoyable and personable." - Dominik Bernhart, Chief Happiness Officer at COBE.

2. Kudos

About Kudos: Kudos is an employee recognition platform that fosters a culture of appreciation through peer-to-peer recognition. Employees can send personalized messages to recognize each other's contributions publicly or privately. The software is smoothly integrated with major technologies like Slack and Microsoft Teams, allowing for real-time recognition. Kudos also offers a comprehensive rewards catalog, including gift cards, merchandise, and experiences, making recognition both meaningful and actionable. With features like milestone celebrations for birthdays and anniversaries and group eCards for team recognition, Kudos enhances employee engagement across organizations.

Kudos main features:

• Peer-to-peer recognition: Enables personalized messages for both public and private recognition.
• Customizable rewards catalog: Includes gift cards, experiences, and merchandise for global employees.
• Milestone celebrations: Automatically celebrate important events such as birthdays and work anniversaries.
• Group eCards: For team and individual recognition on special occasions.
• Integration: Works with Slack, Microsoft Teams, and other tools for seamless workflow integration.

Kudos pricing: Pricing is not listed on the website. You'll need to schedule a demo/sales call with Kudos to learn more about pricing.

Kudos G2 score: Kudos has a G2 score of 4.8/5 based on user reviews.

Notable Kudos customers: Engie, Chewy, Make-A-Wish, MTN, WilsonHCG, and MU Health Care.

What Kudos customers are saying on G2: "It seems very social media-like, and we all have a lot of that in our lives. That makes it easy to use, but it's hard to drive engagement from inside the team. Integration into our other communication channels would be better. I also really dislike robot verification with the pictures. Sometimes it resets itself so many times I just give up. It also doesn't give an option for people with low vision." - Verified User in Oil & Energy.

3. Awardco

About Awardco: Awardco is a leading employee recognition platform known for its unique partnership with Amazon Business, which provides employees access to millions of reward options without any markups. This integration allows organizations to offer a wide range of tangible rewards, including gift cards, merchandise, and experiences, all available at their true cost. The platform supports peer-to-peer and manager-led recognition, allowing teams to acknowledge contributions in real time, boosting employee engagement, and fostering a culture of appreciation. Additionally, Awardco automates milestone celebrations like birthdays and work anniversaries, helping companies maintain consistent recognition efforts across global teams.

Awardco main features:

• Amazon Business integration: Provides employees with access to millions of reward options globally.
• Peer-to-peer recognition: Facilitates instant recognition for employees through points-based acknowledgments.
• Automated milestones: Celebrates important events such as birthdays and anniversaries with no manual input required.
• Global reward catalog: Offers diverse options like merchandise, gift cards, and experiences.
• Reporting and analytics: Provides insights into recognition trends and program effectiveness.

Awardco pricing: Pricing is not listed on the website. You'll need to schedule a demo/sales call with Awardco to learn more about pricing.

Awardco G2 score: Awardco holds a G2 score of 4.8/5 based on user reviews.

Notable Awardco customers: Visionworks, ClickUp, Ultradent, Pilot, Texas Roadhouse, and TaylorMade.

What Awardco customers are saying on G2: "As the company admin on the account, I am usually troubleshooting issues for our employees myself and when communicating from our CSM we hardly ever hear back. There is simply not enough support from the employer's side of things. The features are also very limited. Many competitors have a social platform and have customized recongitions and Awardco seems very lackluster compared to the top tier competitions. It does appear that they are trying new things and rolling out new features but these have been disappointing and don't really help us achieve our main goal of retention and recognition." - Verified User in Information Technology and Services.

4. Bonusly

About Bonusly: Bonusly is a leading employee recognition platform that facilitates peer-to-peer recognition through micro bonuses, allowing employees to instantly recognize each other's contributions. This democratizes recognition, fostering a more inclusive workplace culture. Bonusly integrates with platforms like Slack and Microsoft Teams, making incorporating recognition into everyday workflows easy. The platform also offers a customizable rewards catalog with options like gift cards, donations, and branded merchandise, catering to a global workforce. With features such as automated celebrations for birthdays and anniversaries, Bonusly is designed to enhance employee engagement and retention, particularly in remote or distributed teams.

Bonusly main features:

• Peer-to-peer recognition: Allows employees to recognize each other instantly through micro bonuses.
• Customizable rewards catalog: Includes global options such as gift cards, merchandise, and charity donations.
• Automated celebrations: Recognizes birthdays, anniversaries, and other milestones.
• Real-time feedback: Promotes immediate recognition for contributions and achievements.
• Integrations: Seamlessly integrates with Slack, Microsoft Teams, and HRIS systems.

Bonusly pricing:

• Appreciate: $2/user/month, billed annually
• Connect: $5/user/month, billed annually
• Achieve: $7/user/month, billed annually

For more information, please visit the Bonusly pricing page.

Bonusly G2 score: Bonusly holds a G2 score of 4.7/5 based on user reviews.

Notable Bonusly customers: Toast, Tactile Medical, Seat Geek, Qualtrics, PaloAlto Networks, MongoDB, and Headspace.

What Bonusly customers are saying on G2: "The recognition method and how it can interact with the whole team. It is a great idea to use the Social Media way of posting. Reports and settings are a bit unstable, and the format will not load correctly occasionally." - Diego V., VP of Operations & HR.

5. Vantage Circle

About Vantage Circle: Vantage Circle is an employee recognition platform that helps organizations enhance employee engagement through a combination of peer-to-peer recognition, rewards, and wellness programs. The platform offers a point-based system that aligns rewards with a company's global workforce through its Standard of Living Index (SOLI), ensuring fair distribution of rewards. Employees can send and receive acknowledgment via the social feed, which encourages real-time acknowledgment. The global rewards catalog includes gift cards, experiences, and branded merchandise, making it easy for employees to redeem points for meaningful rewards. Additionally, Vantage Circle integrates with major HR platforms like SAP SuccessFactors and BambooHR.

Vantage Circle main features:

• Peer-to-peer recognition: Real-time recognition with digital badges and messages visible across the organization.
• Global rewards catalog: Offers gift cards, merchandise, and experiences that can be redeemed worldwide.
• SOLI (Standard of Living Index): Ensures fair point distribution for global employees.
• Reports and analytics: Provides insights into recognition patterns and employee engagement trends.
• Integration: Works with Slack, Microsoft Teams, SAP SuccessFactors, and BambooHR for seamless workflow integration.

Vantage Circle pricing:

• Request a demo for pricing. A one-time setup fee is applicable to all plans.
• Grow
• Transform
• Enterprise

For more information, please visit the Vantage Circle pricing page.

Vantage Circle G2 score: Vantage Circle holds a G2 score of 4.7/5 based on user reviews.

Notable Vantage Circle customers: Wells Fargo, Bosch, DHL, Infosys, Wipro, ACG, and Landmark Group.

What Vantage Circle customers are saying on G2: "I like the fact we can personalize our comments with the use of stickers, gifs, and emojis. I hate having to have such a long password!!! I actually hate passwords....having to have a log in process with yet another password is a barrier for me recognize my peers." - Katie R. Manager.

Choosing the right employee recognition and rewards for your company

When it comes to selecting the perfect employee rewards and recognition platform, it is critical to choose a solution that is consistent with your company's particular culture, values, and goals. You want a platform that motivates employees and makes recognition easy, fun, and effective. That's where Matter comes in.

Matter is the ultimate solution for companies looking to simplify and enhance their employee recognition program. With seamless integration into tools like Slack and Microsoft Teams, Matter makes giving and receiving recognition effortless. Employees can send peer-to-peer recognition with customizable, visually appealing kudos cards perfect for celebrating serious accomplishments and inside jokes. The platform is designed to reflect your company values, making it easy to celebrate employees in a way that resonates with your team.

One of the standout features of Matter is its Feedback Friday system, which encourages employees to wrap up the week by giving kudos and rewards. Fully customizable and automated, this feature ensures that recognition becomes a regular part of your work culture without adding extra management overhead.

Remember that recognition is only half of it; Matter also offers incredible rewards that keep employees engaged. The platform provides something for everyone with options ranging from digital gift cards and prepaid Visa/Mastercards to unique custom-branded rewards like lunch with the CEO or extra vacation days. Plus, the coin system resets weekly, encouraging employees to engage regularly and authentically in recognizing their peers.

Matter is perfect for both celebrating achievements and personal milestones. Whether it's a birthday, work anniversary, or hitting a professional goal, Matter automates the celebration, so no special moment goes unnoticed. It even makes gathering those dates effortless by automatically prompting employees for key events.

Ready to transform your company's recognition program into something your team will truly love? Get started with Matter for free today; it's simple to install, totally configurable, and will impact your business's operations long-term.