4 tips for providing meaningful employee rewards and recognition

Employee engagement is a big deal—it drives productivity, retention and overall business success. But here’s the problem: only 31% of U.S. employees were engaged in their work in 2024, according to Gallup—the lowest level in a decade. That’s a huge red flag. Disengaged employees are more likely to feel disconnected, unmotivated, and even start looking for other jobs, which means higher turnover and hiring costs for companies. 

The good news is that a strong employee rewards and recognition program can turn things around. When employees feel appreciated for their hard work, whether through personalized rewards, public recognition or meaningful shout-outs, they’re more motivated and invested in their roles. Recognition reinforces company values, strengthens relationships and creates a culture of appreciation where people want to stay and do their best work.

Here are 4 strategies to ensure your employee recognition initiatives resonate in today’s work environment:

1. Meaningful employee rewards go beyond cash

Everyone loves a little extra cash or a gift card now and then. In fact, 44% of employees prefer gift cards as rewards.

But after a while, they can start to feel impersonal, like an afterthought rather than a meaningful reward. The key to an effective employee rewards program is making recognition feel personal and valuable.

That doesn’t mean you need a massive budget. Even with limited resources, you can get creative with your incentives. Think about rewards that align with your company culture and help strengthen relationships between team members. A personalized note from leadership, an extra day off, or a team lunch can go a long way in making employees feel appreciated. And if you’re not sure what recognition system would be meaningful to your employees? Just ask them! A quick survey or casual conversation can help you understand what kinds of rewards actually matter to your team.

2. Recognize efforts, not just outcomes

It’s easy to celebrate big wins, but there’s a lot of hard work that happens behind the scenes. Employees who feel their efforts are recognized are 2.7 times more likely to be highly engaged at work. That means recognizing dedication, problem-solving and persistence—not just the final outcome—can make a big difference in employee engagement and morale.

Think about it: when employees put in long hours or tackle tough projects, they want to know their efforts matter. Even if something doesn’t generate immediate results, acknowledging the time and energy spent can make employees feel valued. A quick shout-out in a team meeting, a thank-you note, or a public recognition post for high-performing employees on your internal platform can go a long way in reinforcing a culture of appreciation.

3. Gamify your employee rewards program

Gamification is a powerful tool to drive motivation and engagement in the workplace too. 90% of employees say gamification makes them more productive at work, and on average, employees see a 48% increase in engagement with a gamified work experience. 

Think about incorporating leaderboards, badges, points, and rewards to celebrate employees who participate in training, complete tasks or hit milestones. Not only does this make tasks feel more engaging, but it also adds a fun element to daily work. Gamifying learning initiatives, like health and safety workshops or skills development sessions, is a great way to get employees involved and motivated to improve.

Gamification can also help close knowledge gaps. If certain employees aren’t participating in a training session, use a bit of competition to spark interest. Reward top performers with recognition or tangible rewards like swag or extra perks. This keeps things exciting and encourages everyone to stay engaged and perform their best.

Axonify blends games, points, and rewards to help employees find their own motivation. Through features like Recognition Pins, managers and peers can acknowledge an employee’s hard work, with the recipient earning points. This creates a personalized and rewarding recognition experience that keeps employees engaged and motivated.

4. Make sure everyone (seriously, everyone!) knows

Recognition doesn’t work unless it’s visible. If you’re putting time and effort into a rewards program, you need to make sure everyone knows about it. 

When recognition is shared across teams or company-wide, it not only celebrates the individual but sets an example for others. Whether it’s a shout-out at a team meeting, a post on the company’s social platform, or an email announcement, making recognition public helps create a culture of employee appreciation that’s visible to everyone. It shows employees that good work doesn’t go unnoticed and encourages others to step up their game.

Think of recognition as part of the company’s overall communication strategy. If you want to keep employees engaged, you need to actively promote your rewards programs. This means using platforms that everyone has access to, like team chats, internal newsletters, or your company’s social media channels. Sharing moments of recognition makes employees feel celebrated and strengthens the connection to their work culture.

It’s one of the simplest ways to boost employee satisfaction and morale, ensuring that everyone feels seen and appreciated for their contributions.

5. Encourage peer recognition to strengthen team bonds

Recognition doesn’t always have to come from leadership. Sometimes, the most meaningful appreciation comes from colleagues. Peer recognition fosters a sense of belonging, reinforcing company culture and strengthening team dynamics. Employees who feel valued by their peers are more engaged, leading to higher job satisfaction and retention.

One way to implement this is through a structured peer recognition program where employees can give shout-outs for hard work, milestones, or everyday contributions. Whether through a recognition platform, a shared Slack channel, or a simple monthly awards system, empowering employees to celebrate each other creates a culture of appreciation that keeps morale high.

Tie peer recognition to tangible rewards—such as swag, perks, or incentives—to make it even more impactful. The key is to ensure recognition is easy, visible and part of your company’s everyday interactions. A strong peer-driven recognition system motivates employees and enhances teamwork as well as overall workplace culture.

Bring it all together with a culture of appreciation

Building a culture of appreciation is key to creating a workplace where employees feel valued and motivated. When recognition is consistent and aligned with your company’s values, it drives engagement, morale, and retention. Recognizing milestones, hard work, and everyday contributions shows employees they’re a vital part of the team.

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A culture of recognition fosters a positive environment where employees are more likely to stay engaged and motivated, ultimately leading to better company performance. Make recognition a regular part of your work culture and create a cycle of appreciation that benefits both employees and the organization.