14 Companies With Best Employee Recognition Programs

 

1. Southwest Airlines

 

Southwest Airlines is known for its intentionality and effort in creating a positive work environment. Employees participate in the Southwest Airlines Gratitude (SWAG) program, where they recognize each other with gratitude points that can be redeemed for gift cards, experiences, and merchandise, or exchanged for rapid rewards points.

Employees can also receive additional recognition such as:

• the Winning Spirit Award, which recognizes employees who make an extra effort to make a difference in the lives of others.
• the President's Award, which honors the company's highest performers who have consistently exceeded expectations and brought positivity to the workplace each day.

2. Cisco

Cisco uses a program called Connected Recognition for its employee recognition efforts. The program is funded at 1% of payroll, and this investment emphasizes Cisco's commitment to rewarding employees for a job well done.

The company's senior vice president of acquisition & total rewards noted, "Recognition is an investment in people. It’s going to retain talent. If you’ve got the right talent, you’re going to drive revenue growth. It’s an initial investment with a future payoff."

Through the Connected Recognition platform, employees can grant each other rewards ranging from $25-$250. Employees can also use Cisco's Connected Achievement program to reward colleagues with larger value rewards, though this typically requires involvement from managers.

Employees are eager to share how this recognition program has benefitted them. One executive assistant was able to take her entire family - husband, children, and grandchildren - to Disney for a week, covering the entire cost using her Connected Recognition rewards. Another employee in Bangalore used his rewards to buy food and treats for others who needed support during the holiday season.

After sharing how he used his rewards to help fund travel to Thailand, a Cisco employee noted that his colleagues have used their rewards to purchase sports equipment, upgrade their technology, and redecorate their homes. Employees can choose whether they'd like to redeem their rewards for items or experiences, resulting in a more personalized employee experience.

 

3. Unilever

 

Unilever currently operates in almost 200 countries, so their employee recognition programs differ based on the location of each operation.

The organization creates opportunities for employees to influence performance-based rewards, such as their annual bonus and the Performance Share Plan.

The Unilever Heroes Award honors employees who have made a notable contribution to the company during the past year. Award recipients get to attend the Change Leaders Conference, where hundreds of senior managers gather once a year.

 

4. Hilton

 

Topping Fortune's list of the 100 Best Companies to Work for in 2024, Hilton does employee recognition really, really well. 95% of Hilton employees agree that it's a great place to work.

One employee said, "The company goes above and beyond to recognize and celebrate team members and I have never experienced anything like it at any other workplace. I can confidently share my ideas and they are taken seriously even as an hourly employee."

Hilton uses different employee recognition strategies to celebrate outstanding performance and recognize employee contributions to the workplace, including both formal and informal recognition.

The Catch Me At My Best is a spontaneous recognition program designed to recognize employees who were caught delivering outstanding hospitality to guests.

During Team Member Appreciation Week and International Housekeeping Week, employees are celebrated for their efforts and hard work.

Hilton's CEO Light & Warmth Award is the highest honor that employees can receive. It is awarded to employees who consistently live out the company's core values in their work and show exceptional leadership and hospitality skills. In 2023, 15 employees received this award, which includes a $10,000 bonus.

 

5. Airbnb

Airbnb landed at the top of the list on Glassdoor's 2016 list of best places to work, and the way they reward employees has to be at least one factor in this ranking.

The company offers cash bonuses as well as vacation bonuses to employees. Along with their structured employee recognition program, informal recognition happens often, in the form of small gestures and events such as pop-up celebrations and notes of thanks. Airbnb also provides performance bonuses and charitable gift matches.

The commitment to company culture is so strong at Airbnb that they employ a "Ground Control" team, a group of HR employees in charge of curating a positive employee experience.

 

6. Costco

This retail giant finds a variety of ways to offer rewards and recognition to its employees, including -

• Employee of the month
• Presidential Award, which honors outstanding acts of service, and comes with a plaque and monetary rewards.

Employee benefits are also available to people who demonstrate a commitment to the company. Long-term employees who remain with Costco for five years or longer receive an annual bonus of $4,000.

 

7. DHL

Along with delivering over 1.7 billion packages a year, DHL is committed to delivering one of the best employee recognition programs available.

"I'm on it" is both the name of DHL's employee recognition program and the attitude they ask their employees to display. On their employee recognition platform, workers can be awarded bronze, silver, and gold level awards, each one accompanied its own level of merchandise and travel rewards.

Every year, DHL hosts an appreciation week, where employees can enjoy parties, games, and competitions that are designed to recognize and reward their hard work.

Another annual tradition is choosing Employee of the Year winners. Nominated by their peers, employees of the year are individuals who demonstrate a commitment to going above and beyond for their colleagues, the company, and the customers. This is the highest global reward that employees can receive.

DHL's Got Heart program is the largest employee-involved philanthropic program in the world. It's designed to honor those who volunteer their time to serve others and donate money to causes that employees are passionate about.

 

8. Mars

 

The employee recognition program is pretty sweet at Mars. The organization celebrates employees who strive to make a difference within the company or their community. Every other year, they host the Mars Make the Difference Awards, which honor employees who show innovative thinking or a commitment to improving the world around them.

 

19. Apple

Apple is interested in greatness from their employees, and they are more than willing to pony up for it.

Apple workers can earn rewards based on their performance, and rewards include cash bonuses, Apple stock, PTO, and heavily discounted products. All employees have access to charitable giving matching (up to $10,000 a year) and PTO for instances when employees need to renew or recover.

Finally, every decade, employees are recognized with a reward celebrating another 10 years of tenure with the company.

 

10. Zappos

Zappos is often cited as one of the leading examples of how to run a successful employee recognition program.

Unlike most other employee recognition programs, Zappos utilizes a multi-directional approach. There's the traditional peer-to-peer and top-down recognition, but there's also employee-manager recognition, where employees can celebrate leaders who are making a difference in the community.

The recognition program includes perks like -

• Zollars (Zappo dollars) that employees can earn and then redeem for merchandise.
• Master of WOW parking, where employees can nominate one another for a coveted covered parking spot at their Las Vegas office.
• A coworker bonus program that allows each employee to reward another with a $50 cash bonus once a month.

Zappos also offers a unique Grant-a-Wish program. Employees are able to submit a wish through an online platform that everyone has access to. "Fairies" can choose to grant the wish, and the two individuals are introduced face-to-face.

 

11. Typeform

In Typeform's peer-to-peer recognition program, employees can reward each other with merit money using the Bonus.ly platform. They've named these reward points typecoins, and employees can redeem their typecoins for gift cards or cash, or donate them to a charity of their choosing.

Typeform also utilizes a more unorthodox recognition strategy-- spontaneous applause. When someone wants to recognize a colleague, they will start clapping, and in moments the entire office joins in.

 

12. American Airlines

In 2019, American Airlines launched Nonstop Thanks. In its first year alone, the program saw over 2.5 million moments of recognition and more than $10.5 million rewarded to deserving employees. Because many American Airlines employees spend their workday without regular access to a computer, their employee recognition platform is available through a mobile app.

In addition, American Employees employees can receive the Chairman's Award, the highest form of recognition available. Each year, 100 employees are honored with recognition and a $10,000 monetary reward.

 

13. Disney

With nearly a quarter million employees, Disney has its work cut out for it when it comes to employee recognition. The company uses a recognition software where employees can send notes of appreciation to their colleagues

Numerous awards are also available.

• The Walt Disney Legacy Award honors cast members who have demonstrated outstanding effort and work. Winners enjoy a night in Cinderella's castle, participation in a Disney parade, and other exclusive perks.
• The Milestone Award is given to employees who have been with Disney for extended periods of time.

14. Google

We couldn't end this list without mentioning Google, which has been consistently ranked one of the best places to work on lists created by Fortune, Business Insider, and Glassdoor.

Google uses a peer-to-peer recognition program, where employees can celebrate their colleagues and nominate them to earn a small bonus (if approved by a manager). It also uses a spot bonus program, which allows managers to recognize team members with a cash bonus or experience reward.

Employee recognition doesn't always need to include a reward. Thank You notes can be sent to peers to celebrate their hard work and effort. Since these notes aren't tied to a monetary reward, they send immediately without manager approval.

 

What Are the Benefits of Organizing Your Own Employee Recognition Program?

 

 

Successful employee recognition programs don't just reward employees - they also result in rewards for the company.

 

Improved Employee Retention

People who don't feel like they've received an adequate amount of praise are twice as likely to say they will quit within the next 12 months, and replacing an employee isn't a cost-efficient task. On average, it can run companies between six to nine months of an employee's salary to find and hire their replacement. Strong employee recognition programs can help lessen this financial drain.

More than two-thirds of HR professionals believe that frequent recognition has a positive impact on employee retention. When employees themselves are surveyed, those working in an organization that prioritizes employee recognition are 56% less likely to be searching for a new job.

 

Increased Employee Engagement

Employees who believe their managers will recognize them for their hard work are 2.7 times more likely to be highly engaged. Employee engagement impacts numerous other performance indicators, including absenteeism, productivity, and overall wellbeing. If you can boost employee engagement, you're almost guaranteed to see some thrilling results.

 

More Positive Workplace Culture

Your company culture hinges on how you make your employees feel, and when they feel valued and appreciated for the work they do, it's a win for all. Employee satisfaction is higher in organizations where they are frequently praised.

 

Improved Employee Performance

37% of employees agree that an increase in appreciation would motivate them to produce better work more frequently, and 92% of employees say they would repeat a behavior if they were praised for it.

 

What Makes an Employee Recognition Program Effective?

You don't have to have a large corporation to have a killer employee recognition program. Small and medium businesses can execute incredible employee recognition programs by following the same principles. Let's talk about what those are.

 

Clear Objectives

The best employee recognition programs have a strong why. Consider what it is you want to achieve with your program - this becomes the cornerstone for the rest of your planning. It helps you determine what recognition looks like at your company.

 

Timeliness

Recognizing employees in a timely manner is essential to reinforcing the positive behavior or achievement you're celebrating. Think back to Hilton, which was named the number one place to work in 2024. Their Catch Me At My Best program is designed to celebrate exceptional employee performance the moment it happens.

The importance of timeliness is also becoming magnified as Gen Z enters the workforce. Research from Gallup shows that the majority of Gen Z and younger millennial employees prefer to receive recognition at least a few times a month, rather than the less-frequent preferences of Baby Boomers.

 

Variety of Recognition

You'll notice that in the majority of companies with the best employee recognition programs, recognition comes in two main forms.

There's the smaller peer-to-peer and top-down recognition. This happens when employees recognize each other through their employee recognition software or a manager shouts someone out during a meeting. It's the SWAG of Southwest Airlines and the Zollars of Zappos.

Then there's the major recognition-- the kind used to honor leaders in the company through annual awards and major perks. This is Hilton's CEO Light & Warmth Award and Deloitte's Green Dot Award.

Recognition doesn't solely need to focus on individual employees, either. Research from Gallup has shown that team recognition has a major impact on the cohesion and culture of teams.

When team achievements are recognized, 74% of employees agree that their colleagues help each other when needed, but in organizations where team achievements aren't recognized, only 31% of employees would agree that they help one another.

In teams that are regularly recognized, two-thirds of employees trust one another, compared to just 26% of employees where teams are not recognized. The need for team recognition is why the Hilton Light & Warmth Award also recognizes two teams each year.

This trend continues for many indicators of team cohesion; when teams receive praise, they prioritize quality (66% of recognized teams vs 25% of non-recognized teams), they feel like they are doing worthwhile work (74% vs 42%), and they openly share ideas amongst themselves (56% vs 18%).

 

Visibility

Public recognition boosts morale for the recipient as well as their peers. There are numerous ways to make your employee recognition visible. Virtual recognition programs are one of the easiest - with a company-wide recognition feed, everyone can see the praise that their colleagues receive.

Many companies use email, newsletters, employee apps, or social media to publish the names of award winners. You can also use recognition walls or just post it on the sign out front. Let the world know how grateful you are for your team of rockstars.

 

Equitable

In 2014, Apple shut down during the week of Thanksgiving. While employees were already off that Thursday and Friday, this shutdown meant that they were given Monday-Wednesday off as well. No loss of vacation days, no deduction from their paychecks, just three additional days off to celebrate an exceptional year at the company.

To make sure their entire workforce could benefit from this reward, Apple modified the bonus days for employees who didn't work in a US office. International employees were provided additional PTO during an equitable holiday, and retail workers who were still needed to go in during Black Friday shopping received the three days at a different time.

Companies with the best employee recognition programs make sure their program is inclusive for all employees regardless of their roles, backgrounds, or identities. Equality doesn't mean that employee appreciation is the same for all, but that rewards and recognition are tailored to best suit the individual.

Keeping employee recognition equitable also means that you should ensure all employees are receiving a similar amount of appreciation. In theory, this is obvious, but in reality, only 26% of employees believe they receive similar amounts of recognition as their peers who are performing at the same level.

Black and Hispanic employees are less likely to agree that they receive equitable recognition, and diverse talent isn't the only group lacking desirable amounts of recognition. Young workers, especially Gen Z, receive far less recognition than is desirable to the majority of the generation.

Managers also experience a lack of recognition and an imbalance in how much praise they give vs receive. People managers generally report giving recognition three times as much as they receive recognition from their own supervisors.

 

Support from Leadership

Speaking of the need to provide rewards and recognition for managers, support from leadership is a critical component of a successful employee recognition program. It's up to company leaders to provide top-down recognition to managers, and to train managers in providing much-needed peer to peer recognition.

When leaders actively participate in a recognition program, it sends a strong message about the importance of recognizing employees, ultimately enhancing the program's credibility.

People also hold recognition from leadership in high esteem. In a Gallup survey, 24% of employees said the most memorable recognition they received came from a high-level leader or CEO, and 12% said it came from their manager's manager.

By taking the time to recognize employees for their efforts, the C-suite team and other leaders contribute to a culture of recognition and contribute to career moments that become lasting memories.

 

Alignment with the Company's Values

An effective employee recognition program is designed to align with your company values and goals. You can make this a reality by creating recognition opportunities to highlight those values. For example, when Typeform employees celebrate one another on their recognition platform, they have the ability to include hashtags that align with their company values, such as #seek_to_innovate or #leave_space_for_fun.

 

Employee Involvement

Employee involvement in employee recognition programs should be twofold.

First, there should be a way for workers to provide peer to peer recognition. There is significant value in top-down recognition, but recognizing employees is only a small portion of a manager's daily tasks.

Peer recognition multiplies the amount of recognition each employee is able to receive throughout the week. It also ensures that people are being appreciated for a large variety of accomplishments, since their colleagues see behaviors and actions that managers and leaders may not always be privy to.

65% of employees would stay at a job with an unappreciative manager as long as their co-workers expressed appreciation for their work.

Second, employees should be asked for regular feedback regarding the current recognition program. Use formal surveys and informal conversations to learn about their perception of the program.

Using a Likert scale and the questions below, you can gather valuable insights to help improve your system -

How much do you agree with the following statements?

• I am satisfied with the current employee recognition program.
• It is easy to use the recognition platform to give and receive praise.
• I am satisfied with the types of recognition available through the platform.
• Our recognition program is effective in facilitating peer to peer recognition.
• I feel that recognition is visible and transparent across the organization.
• I believe our recognition program has had a positive impact on our company culture.

At Unilever, employees receive a total rewards statement that include a 'rate my reward' feature on their employee recognition platform. With this feature, reward recipients can give feedback about each aspect of their reward package, noting how they value each element and their overall satisfaction with the available employee rewards.

By prioritizing employee feedback, Airbnb demonstrates its commitment to creating a company culture built on trust. The company uses online feedback forms that allow for two-way employee feedback, so employees have the freedom to share ideas and concerns that they'd like to address. During their annual three-day conference, time is set aside for employees to provide feedback on what is going well and where there's room for improvement.

 

Storytelling

Sharing stories of recognized employees and their achievements can inspire others and provide concrete examples of desired behaviors and outcomes. Storytelling adds a human element to your recognition program and, when publicized on your social media or company website, can be a major boost for your company brand.

 

Recognition Technology

Employee recognition software is key to streamlining the recognition process. It allows for almost instant recognition and doesn't require additional tools beyond the computer your employees are already using. It enhances the accessibility of your recognition program so that, regardless of whether they're remote or in-person, all employees can participate.

The data available on a digital employee recognition tool can also provide valuable insights about what kind of employee recognition is taking place within your team. For example, with Terryberry's recognition platform, managers can see who gets the most recognition on their team, who sends the most recognition, the last time each employee was recognized, and what categories of recognition are being used.

Using this data, leadership can evaluate the effectiveness of their employee recognition program and determine which team members are demonstrating desired traits, such as team spirit or a commitment to company values.

 

 

You Can Build a Thriving Employee Recognition Program

Although the benefits of employee recognition programs are well-documented, many companies aren't capitalizing on them. In fact, almost two-thirds of leaders say that they have no budget set aside for employee recognition. And 81% of leaders say that employee recognition isn't a strategic priority for their company.

Just 23% of employees agree their employer has a system to celebrate work milestones, and only 15% say there's a system to honor significant personal events for their employees.

For many of the companies on this list, their successful employee recognition programs include a digital platform where employees can send and receive recognition for a job well done.

Terryberry's recognition software combines employee recognition and employee rewards in one easy to use platform. Employees receive recognition from their peers and managers and earn points that can be redeemed for thousands of items and experiences on the Reward Platform.

Simple and successful employee recognition, all in one place. That's Terryberry.

Learn what Terryberry can do for your employee recognition efforts.