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Employee recognition has an impact on employee engagement, motivation, and retention.
It’s one of the essential performance drivers, along with professional development opportunities such as training and mentorship, and attractive benefits and compensation packages.
Read on to learn about nine types of employee recognition and get inspiration from companies such as Adobe, Asana, and Zappos.
Types of recognition at work
Let’s look at the different types of employee recognition and when it’s best to apply each.
1. Top-down employee recognition
Top-down recognition flows from higher up in the company hierarchy. This is the most traditional type of employee recognition.
You will find two main types of top-down recognition:
One is manager-to-employee recognition. This could be done either informally, for example, as verbal praise, or formally, such as during the annual performance review. And according to 40% of employees, it’s the most impactful type of recognition.
The other type is company-to-employee recognition. That’s normally a formal and structured type of recognition.
What is a good example of top-down recognition?
Many UK universities, such as Imperial College London, recognize excellent employee performance with presidents’ awards, and plenty of businesses run employee of the month or year rewards.
For many employees, recognition from managers or company executives carries serious weight and could be particularly motivating and rewarding.
2. Peer-to-peer employee recognition
Peer-to-peer recognition is when coworkers recognize each other's contributions and achievements.
This could be in the form of a simple ‘thank you’ when they help out a colleague in need or more structured activities.
For example, at Zappos, an online retail company, co-workers give each other $50 bonuses as a token of appreciation. And there’s no limit on how many of these you can get from your colleagues, so it’s an incentive to help as many of them as possible.
Peer-to-peer recognition is particularly valuable in contexts where teamwork and collaboration are important. When combined with team-building activities, it can strengthen the unity and mutual support among employees.
3. Public employee recognition
As the name suggests, public recognition is shared openly with others – at the end of a meeting, in a Slack channel, or on social media, as activewear brand Lululemon does on LinkedIn.
Why should you use this kind of recognition?
86% of companies that participated in a SHRM and Workhuman study believe that public recognition increases employee engagement. Some employees thrive when in the spotlight, and public recognition does wonders for their motivation and job satisfaction.
You can also use it to showcase role models and exemplary behaviors you want others to emulate.
4. Company-wide recognition
Company-wide recognition is a kind of public recognition. It celebrates employee achievements, contributions, and milestones in a way that’s visible to the entire organization.
This could be done through formal announcements, events, or communications that ensure everyone in the organization is aware of the recognized individual or team's successes.
Why would you want to use this type of recognition?
One reason might be to acknowledge accomplishments that have a significant impact on the company and to achieve maximum impact and awareness. Or to highlight behaviors that exemplify the company’s values and mission.
For example, AGL Energy, an Australian energy company, has created a recognition program that rewards employees for behaviors that reflect its commitment to carbon-free energy.
It’s based on “Energize,” a custom-built online platform where staff can recognize their colleagues, individually and as teams, with shout-outs, high-fives, and thumbs-ups.
5. Private employee recognition
Private recognition is the opposite of public recognition: It acknowledges employees’ achievements in a personal and discreet manner, away from the public eye, such as in a one-on-one meeting with a personalized note or a meaningful gift.
This type of recognition is particularly valuable for introverted employees who may feel uncomfortable with public attention.
And the fact that you recognize this sends them a clear signal that you understand and value their diverse preferences. This can strengthen the personal connection between the feedback giver and the recipient.
6. Structured employee recognition
Structured recognition is a systematic approach to rewarding employees' contributions, achievements, or behaviors.
This form of recognition is typically part of an organized program with set criteria, processes, and schedules.
Performance bonus initiatives are a great example. You could reward your employees for meeting a specific sales target or referring a new employee.
Thanks to the set criteria, recognition is consistent and fair, so it promotes employee trust.
What’s more, spelling out what it takes to succeed can drive professional development. It encourages employees to develop the skills necessary to achieve their goals. Especially if they’re aligned with your continuous learning and mentoring programs.
7. Team recognition
Team recognition is the practice of celebrating the efforts, achievements, and successes of a group of employees working together to achieve a goal.
For example, you could reward them for completing a project or achieving set performance goals.
Team recognition strengthens the bonds between team members, fostering a strong sense of belonging, accomplishment, and satisfaction that comes from being part of a successful team.
As this type of recognition focuses on the contributions of the team as a whole, you can use it to emphasize the importance of team communication, mutual support, and collaboration.
8. Milestones recognition
Milestones recognition is the practice of celebrating significant events or achievements in an employee's career or the progress of the organization.
Companies use milestone recognition to honor employees’ long-term commitment and dedication with years of service awards, for example.
Other notable milestones include significant professional accomplishments, such as completing a degree. Or you could recognize when a mentor or mentee has completed a mentorship program or participated in a certain number of sessions.
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This recognition also allows leaders to acknowledge the successful completion of project stages or important events, like getting an industry award or new accreditation.
9. Day-to-day employee recognition
Day-to-day recognition acknowledges employees’ efforts, contributions, and behaviors in their daily work.
This type of recognition is typically spontaneous and less formal than structured or milestone recognition. It focuses on regular, everyday activities, and often those thankless tasks that nobody wants to do but are essential for organizational success.
For instance, the Asana recruitment team uses a board where staff can post “Tiny gratitudes” for their colleagues to recognize their support and collaboration on an ongoing basis.
What’s the objective?
To provide immediate feedback that encourages and reinforces desired behaviors and makes employees feel valued for their ongoing contributions, not just major achievements.
Employee recognition best practices
Be specific and timely: Instead of generic praise, specify what the employee did to deserve recognition and do it as soon as possible so it’s still fresh in their minds.
Choose the right type of recognition: Learn what your employees value and what motivates them best, and use the insights to inform your recognition program design.
Use a wide range of recognition types: Leverage different types of employee recognition to maximize their impact and foster inclusivity.
Train your managers: The success of your recognition program depends a lot on the attitude and personal skills of your leaders. Use e-learning tools and mentoring to help them recognize the importance of employee recognition and teach them how to provide meaningful feedback.
Create recognition rituals: Embed recognition into everyday routines so that employees do it habitually. For example, allocate 5 minutes at the beginning of the meeting to celebrate “small victories.”
Final words
There are multiple ways to recognize employee contributions. You can do it privately or publicly, formally or informally, individually or as a group. Recognition can come from managers, the company, or the employees themselves.
Which of them you use depends on the circumstances and what you’re trying to achieve. That’s why you’re more likely to need various recognition types to engage your staff.
Of course, recognition programs alone aren’t going to improve employee performance. They need to be part of a more comprehensive strategy, including well-designed benefit and well-being packages, training, and mentoring, to name just a few.
To learn more about retaining employees through recognition, download our Employee Retention Strategies playbook!
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