How HR Can Reward Great Employees with Meaningful Recognition

Editor's note: Posts published on From the Workplace are written by outside contributors and do not necessarily reflect the views or opinions of SHRM.

Rewarding exceptional work is an expectation of modern employees — heavily influencing their engagement, retention, and sense of belonging. In response to growing employee expectations, rewards and recognition programs support a more holistic recognition system, turning singular, disjointed appreciation into an incentivized, supportive experience. But why is it important to create a dedicated system or platform for rewards and recognition? 

Without that well-defined program, rewards and recognition (R&R) won’t travel as far, and the impact won’t be felt equally. And when hard work is unrewarded, engagement falls — directly impacting a company’s bottom line, according to Gallup’s State of the Global Workplace: 2023 Report.

Its research finds a direct correlation between employee productivity and the nearly $9 trillion lost globally to poor output. With the same report referencing only 23% of workers being actively engaged, a figure that’s dropped to 20% in 2025, rewards and recognition are an invaluable remedy for both employees and their leadership. 

In fact, Gallup’s research finds that when employees believe their wellbeing is prioritized, they are three times more likely to be engaged and 71% less likely to burn out than their peers.  

Support Strong Rewards Programs

If strong rewards and recognition have a direct impact on retention, engagement, and the bottom line, designing them with intent is key to reaping these rewards. A useful R&R program begins with a few core elements:

Policy

Creating holistic rewards programs begins with a clearly defined policy and purpose, in tandem with meaningful organizational values that employees can associate with recognition, such as innovation, leadership, or teamwork. 

Engaging Employees

Each program needs a reason for employees to engage. Provide practical examples of recognition, some with monetary rewards or points, and others just as kindgestures. Ensure leadership is committed, as rewards from leaders tend to have a high emotional impact. 

Implementation

Launching a rewards and recognition program can be daunting, especially as early adoption is key to success. To implement the program, create 30-, 60-, and 90-day outreach programs, ensuring employees know what their benefit is and when it becomes active. 

Growth

If using an outside vendor, choose a partner that has built-in analytics tools that will make gauging success and scaling the program as utilization grows. Quality analytics are also essential for gathering feedback and prioritizing improvements and suggestions from employees, whether it be on new eligible expenses or accessibility. 

Webinar: Elevate Engagement in 2026

Key Components of Great R&R Programs

Great rewards and recognition programs explore meaning beyond a “thank-you.” They combine everyday experiences with meaningful and high-impact reward moments. 

Peer-to-Peer Recognition

Support employees to recognize exceptional work among their teams for everyday wins. 

Leadership Recognition 

Reserve high-profile recognitions for exceptional, company-wide celebrations, giving employees a monetary reward spendable on real, impactful rewards. 

Milestone Rewards

Some companies choose to forgo monetary recognition in favor of larger rewards at service increments, like one, three, five, and 10 years. 

Team-Based Recognition

With a dedicated R&R program, employers will have an easier time recognizing successful teams at scale, with visibility from the rest of the organization. 

Toolkit: How to Develop and Sustain Employee Engagement

Why Disconnected Recognition Doesn’t Work Anymore 

Rewards and recognition programs need a great level of care and thought, outside of just thanking for high-impact actions and moments. They are the backbone of any successful, healthy organization, pushing employees to greater heights while encouraging support from leadership. 

Tim Abraham is the director of people operations at Espresa and a seasoned global culture enthusiast known for his transformative and empathetic leadership.