Appreciated employees are a company's most valuable asset. It is a truth that all businesses ought to embrace. Retaining your employees and keeping them satisfied saves your company the high cost of recruiting. The easiest way to motivate your employees is through praise and recognition - the reason why the employee recognition program ought to be set in place for every organization.

An example of an Employee Recognition Program

Every company can use a different approach in their employee recognition program. This model can serve as a basic template to others who do not have an idea what the credit program entails.

Why recognize employees?

Recognition is done purely for motivation purposes providing the employees with the satisfaction and encouragement to perform their jobs more efficiently.

Who funds this program?

Heads of departments, directors and managers are to ensure the availability of funds and support reasonable budgets set for this program. These recognitions are unit based therefore department funded as well not from any individual employee.

Recognition Ideas

They come in two forms - formal and informal. Informal is the recognition done at the end of short projects or impromptu while legal is properly planned for by most if not all the departments. The formal recognition ideas include areas in the customer service, attendance, productivity, etc.


Employee Recognition may be given in form of awards that are of different types - monetary prizes, non-monetary awards, and Recognition leave. Whatever type of award, it must be documented and processed through the right procedures and signed as passed by the Human Resource department.

Monetary awards are to be issued according to the law that states that they should not exceed $750 and are subject to taxation. Examples of monetary awards are check, cash, and a savings bond.

Non-monetary awards are exempt from tax as they are at a lower cost. They should not exceed $50, and if they do, then they attract taxation. Department heads are responsible for keeping clear records of this recognition.

Recognition leave is meant for those who are under full time and part time employees who receive a whole month's salary. Wage employees do not apply to this one. Up to 40 days of leave are allowed in a calendar year.

Records for all types of awards should be well documented to provide records, especially during auditing period. Without these files, no one can be able to prove whether the rewards were given or not.

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