What Types of Employee Recognition Matter Most?

Appreciating your employees matters more than ever. How do we know? It’s all in the employee recognition research.

Studies show that 87% of people say meaningful recognition impacts their job satisfaction. At the same time, companies with strong employee recognition programs see up to 31% lower voluntary turnover. This tells us that recognition isn’t just nice to have. It shapes workplace culture, drives engagement, and keeps top talent on board.

But here’s the thing: not every employee recognition strategy will work for your team. What makes one person feel valued might fall flat for another.

In this article, we break down why employee recognition isn’t one-size-fits-all, the different ways to recognize your staff, and how to pick the strategy that best fits your people and your brand.

Employee Recognition Isn’t One-Size-Fits-All

Employee recognition isn’t a cookie-cutter process. Employee motivations, organizational resources—even the time of year—can impact what recognition strategies work best.

Those who treat recognition as a checklist item often miss the real opportunity: making employees feel seen and appreciated. Just remember, different people want to be recognized in different ways. Strategies that work with one individual might fall flat with others. This is why flexible, personalized employee recognition should be non-negotiable.

When you understand how your employees want to be acknowledged, you can build stronger connections and boost engagement from the ground up. The result? Higher employee engagement, stronger employee loyalty, and a healthier company culture.

8 Types of Employee Recognition to Try

If you want to build a culture of appreciation, use a variety of employee recognition types. Doing so will keep things fresh and help meet the diverse preferences found in your workplace.

1. Written praise
   
   Thoughtful emails, handwritten notes, digital group cards: written praise is a powerful way to show appreciation and improve job satisfaction. It doesn’t cost much either. So managers can use this form of recognition on a regular basis.
   
   You might be wondering why a simple written message can mean so much. One, it’s hardly ever used. The novelty of written praise makes it feel unique. It’s also harder to write a note than it is to purchase a gift card. This fact makes written praise valuable. Finally, employees can reread these messages whenever they need to. In other words, it’s a gift that keeps on giving.
   
   Pro Tip: Written praise is perfect for remote teams and team members who find public recognition uncomfortable. Write a personal message if either situation applies to you.
   
   
2. Peer-to-peer recognition
   
   Peer-to-peer recognition lets employees celebrate each other’s wins. As such, this recognition approach spreads positivity and helps everyone feel included. In most cases, the employee experience is dramatically improved.
   
   Also worth mentioning, when coworkers show appreciation for each other, it strengthens teamwork and trust. Peer recognition encourages a culture where great work is noticed at every level. This simple consideration keeps everyone invested in the company’s success.
   
   Pro Tip: Peer-to-peer recognition is easy to facilitate with a tool like Kudoboard. Employees simply tag each other inside the platform to show appreciation for their colleagues. Even better, said appreciation can be personalized with emojis, text, and images to make it more special.
   
   Note: Peer-to-peer recognition is often referred to as social recognition, but they aren’t quite the same. Both refer to public acknowledgement, but social recognition can come from anyone. As the name suggests, peer-to-peer recognition only comes from peers.
   
   
3. Verbal praise
   
   Verbal praise is the quickest way to let someone know they’re valued. It can be shared in a team meeting, during a one-on-one, or when passing a colleague in the hall.
   
   Like written praise, verbal recognition is free but impactful. It encourages open communication and trust. And when a manager gives it in front of others, it boosts confidence and morale. 
   
   For many employees, a kind word at the right moment can brighten their day. It can even reinforce positive behavior. For these reasons, give verbal praise whenever possible.
   
   Pro Tip: Go beyond “Good job!” with your employees and/or colleagues to tell them exactly what they did well. Specificity will make the praise more effective.
   
   
4. Prizes
   
   Prizes, like gift cards, subscriptions, and company swag, offer tangible proof that one’s hard work is noticed. As an added bonus, the variety—digital, physical, big, small—will let you match the employee reward to the individual person and achievement. Plus, many prizes serve as regular reminders that you value your employees’ efforts. Win!
   
   So, whether you award a new set of headphones or a tasty coffee subscription, know that the prize you give will make recognition more memorable and foster a positive company culture.
   
   Pro Tip: Make the process more personal by allowing employees to choose their own prizes.
   
   
5. Awards
   
   Awards can be used to recognize standout contributions and major milestones. From “Employee of the Month” plaques to “Years of Service” awards, this type of recognition makes achievements extra meaningful. They also help reinforce core values and boost morale—especially when shared publicly. Other employees will think, “Hey, I can do that too.”
   
   Pro Tip: Don’t be afraid to have fun. For example, you could host an annual award ceremony and give awards for “Best Zoom Background” and “Ultimate Deadline Slayer.”
   
   
6. Bonuses
   
   Bonuses are a popular form of employee recognition because they offer real, immediate value. Money speaks, and a timely bonus shows clear appreciation for results. As such, bonuses can boost morale, reduce turnover, and motivate staff to hit future goals. These financial rewards can take multiple forms, such as:
   • Spontaneous “spot” bonuses for a job well done
   • Seasonal bonuses tied to holidays or company success
   • Annual performance bonuses awarded on an individual basis
     
     Pro Tip: Your employees will appreciate “just” a bonus. But you can improve the gesture by including a personalized digital card to explain why they received the monetary reward.
7. Leader-to-employee recognition
   
   Recognition from directors, managers, and other team leaders carries a lot of weight.
   
   It reassures employees that their contributions matter to those in charge. This small act reduces anxiety about job performance and helps employees feel secure, leading to better engagement.
   
   Pro Tip: Leader-to-employee recognition can be given in multiple ways—prizes, awards, bonuses, written notes, etc. Whatever form your leader-to-employee recognition takes, know you’re making your employees feel noticed and giving their work more meaning.
   
   
8. Team-wide recognition
   
   Team-wide recognition celebrates group achievements, like hitting an important project deadline, meeting revenue goals, or even just making it through a hectic week of work.
   
   While personal rewards are important, team recognition builds a sense of unity and shared purpose. It’s especially useful for cross-functional and/or collaborative projects. Recognizing the team reminds everyone that success is a group effort and all contributions matter.
   
   Pro Tip: There are many ways to give team-wide recognition. One unique way is to use a trusted employee rewards platform. Then allow your entire team to choose their own rewards within a specific monetary range. This will add an element of fun to the process.

Structured vs. Unstructured Recognition: What’s the Difference?

As we’ve seen, employee recognition comes in many forms. But most strategies fall into two key categories: structured and unstructured. Knowing the difference will help you match strategies to team needs. Here’s a detailed look at both recognition types and when to use them:

Structured Recognition: Structured recognition, also referred to as formal recognition, has set criteria, schedules, and rules. Examples include annual and service awards. You might want to use this form of recognition because it creates a sense of fairness. Employees know if they do XYZ, their efforts will be acknowledged. These programs also reinforce company values, which can have long-term benefits. At the same time, structured recognition can feel less personal, so employees might not care about them.

Unstructured Recognition: Unstructured recognition, also known as informal recognition, is spontaneous, flexible, and highly personal. Instead of a formal announcement or plaque, it might take the form of a quick thank you message, a peer shoutout, or a surprise gift card. This approach gives everyone the freedom to recognize achievements the moment they happen. As such, it can feel more genuine and boost employee morale. It’s also more adaptable to each person’s style and preferences. On the flip side, unstructured recognition programs require constant attention. Managers must acknowledge their teams regularly or the program will fail.

At the end of the day, we recommend both structured and unstructured recognition programs. 

Use an unstructured approach to motivate your employees every day and ensure they feel valued. Use a structured approach to reward exemplary performance over a longer time horizon. Whatever you do, make employee recognition as personal as you can.

How to Choose the Right Employee Recognition Strategy

To choose the right employee recognition strategy, tailor your efforts to fit each employee’s personality and specific achievements. Then balance these things with the resources at your disposal. Doing so will make your recognition feel more authentic and ensure your employees feel valued. Let’s dive a bit deeper into this simple four-step approach:

Account for the employee

Every employee is different. Some enjoy the spotlight. Others prefer to work in the background. Before recognizing someone, think about their personality and preferences.

Is the employee reserved? A private thank-you note or one-on-one conversation will likely be most appreciated. Does the employee enjoy the spotlight? A public shout-out on social media, your company’s intranet, or even during an in-person meeting might hit the mark.

Also, do your best to personalize tangible rewards. For example, if you give someone a gift card, make sure it’s to a restaurant or store they like. The best recognition shows you’ve paid attention to the person, not just their work. This will make it feel more genuine.

Consider the achievement

The level of recognition should match the size of the achievement.

If an employee succeeds in a small way, like positively contributing to a team meeting, a personalized note is sufficient. It acknowledges their effort without blowing things out of proportion. If that same employee has a major accomplishment, like closing a seven-figure deal, a more substantial reward is appropriate. In this scenario, a hefty bonus might be in order.

By aligning recognition with achievements, you’ll show your team that your approach to appreciation is balanced and fair. This will inspire employee motivation and boost performance.

Recognize your limitations

Not every business can shower its employees with expensive rewards. Your company has real-world limitations—both financial and otherwise—that must be accounted for.

What matters most is the sincerity and timing of your employee recognition.

If budgets are tight, focus on personalized, heartfelt recognition. A handwritten letter or a genuine conversation can mean as much as a monetary bonus if it’s written the right way. In the end, the goal is to make employees feel valued, not to simply pad their bank accounts.

Make a thoughtful decision

Once you’ve weighed personalities, employee achievements, and resources, take action. 

The most important thing is to show your employees that their contributions matter. You can’t do this if it takes you weeks or months to acknowledge their hard work.

If you’re not sure what’s perfect, remember there will be more opportunities in the future. It’s better to recognize someone quickly, even in a small way, than to wait for the “perfect” moment. The habit of consistent, thoughtful recognition strengthens morale and company culture.

The Benefits of an Employee Recognition Platform

Employee recognition platforms have become essential for many companies. It’s not hard to see why. These tools provide an easy way to celebrate wins in real time. They also help company leaders build habits of appreciation that impact everything from morale to retention.

Here are five reasons to invest in employee recognition software:

Better Employee Engagement

According to a recent Gallup study, employees who receive recognition are 20 times more likely to engage in their work than those who don’t.

This isn’t surprising. People want to know their efforts matter. Why engage in tasks that have no meaning? For most employees, the answer is they won’t.

The right employee recognition platform will make it easy for your company to acknowledge its employees’ contributions on a regular basis. When this happens, your team will naturally engage with their roles on a deeper level, then employee performance will skyrocket.

Increased Team Productivity

Recognition platforms give company leaders an easy way to call out team successes.

Doing so motivates employees to keep performing at their best. In fact, nearly 78% of employees say they’d be more productive if they were recognized more often.

When praise becomes routine, it sets a higher standard across the organization. Employees work harder, teams collaborate better, and everyone pushes for bigger results.

More Collaboration

Top employee recognition software includes peer-to-peer recognition tools, Said tools encourage colleagues to notice and celebrate each other’s contributions.

In other words, these tools turn employee appreciation into a group activity, breaking down silos and strengthening relationships across teams. This is important because employees who feel comfortable praising each other are more likely to share ideas and work with others. The result is a more connected, supportive environment where collaboration happens naturally.

Improved Employee Retention

A strong recognition culture is one of the best ways to keep your team together.

After all, valued employees don’t usually look for alternative employment. Data backs this up: a recognized employee is 63% more likely to stay in their job for the next three to six months. 

Employee recognition software allows for regular recognition, which improves morale and retention. Because of this, companies that use a recognition platform experience less employee turnover. This lowers hiring costs and keeps institutional knowledge within the company.

Thriving Company Culture

Consistent recognition creates highly engaged and motivated workers who know their efforts matter. It can also help employees recognize each other for their hard work.

All of these things create an environment that people want to be a part of.

Imagine a workplace where your employees get more done, achieve bigger goals, and have the time of their lives in the process. Recognition software can help make that vision a reality.

Wrapping It Up

Employee recognition is key to your company’s success.

Of course, you have to match the type of recognition you use to the specific people you manage and their achievements. You also need to account for company resources. It’s a lot, but after reading this guide, you can do it.

To make sure your recognition efforts are successful, invest in an employee recognition platform. Tools like Kudoboard make it easy to recognize workers in unique ways. They also include peer-to-peer recognition features so colleagues can acknowledge each other’s efforts.