Employee of the Month Award Program: Why It Matters & Best Rewards Ideas

It is perhaps safe to assume that when one of the greatest writers of the last century, Nobel laureate William Faulkner said, "Gratitude is a quality similar to electricity; it must be produced and discharged and used up to exist at all.", he was not thinking about the employee of the month programs instituted in the contemporary workplace.

That said, his thoughts about gratitude are undoubtedly timeless and can apply to a wide range of situations.

Over time, employee recognition measures have become so ubiquitous in modern businesses that they are often an integral part of their corporate vision and ethos.

While the necessity and fruitfulness of employee of the month award programs are largely unquestionable, the structure of these outreach methods is increasingly coming under the scanner.

The pitfalls of a poorly designed employee recognition program

Most leaders and HR professionals intuitively grasp that a poorly-conceived or inefficiently executed employee recognition program could not just lack impact but could also harm the business considerably.

While it is evident that a run-of-the-mill program is a grievous misallocation of resources and time, it can also have far-reaching negative consequences on the team's morale.

When setting employee of the month criteria, the cardinal sin is not to disclose it. Employees who do not clearly understand what is sought of them cannot ace those requirements.

Furthermore, while these programs are often an excellent way to get employees to engage with each other, placing too much emphasis on the results of the employee of the month competition can foster unhealthy competitiveness in the team and create rifts.

A significant flaw in how the management and leadership teams view such programs is that often, managers believe that employee recognition initiatives are limited to conducting a monthly rewards program.

Building a culture of consistent positive reinforcement and regularly recognizing day-to-day achievements are imperative to forging a strong and motivated team.

It doesn't always require elaborate programs or financial incentives to motivate employees, as a simple thank you often go a long way in making them feel valued and appreciated.

What do the experts say about the employee of the month award program?

Published in the Journal of Organizational Behaviour Management, Douglas A. Johnson and Alyce M. Dickinson conducted a thorough analysis of employee of the month program examples. They came up with a few startling insights. After running two simulated programs on a control group, they found that;

The authors further explain that the program's negative impact could magnify should the criterion for earning the reward not be specific. While this data might initially seem counter-intuitive, it is worth examining it in further detail as the implications of these experiments can be immensely vast when applied to most offices.

Therefore, businesses must invest as much time and effort in designing employee recognition schemes as they implement them. Being conscious of the pitfalls of a poorly designed recognition scheme and eliminating them is the first step employers must take while structuring a program that works.

The most massive revelation regarding employee recognition schemes is that frequent and focused outreach will have a significantly more significant impact than a scattered program.

Also, it is of utmost importance that the reward is tied to specific productivity numbers and several aspects of performance.

Is “Employee of the Month” a good idea?

Do you think that the “Employee of the Month” award works?

The answer is no. The primary reason is that it only recognizes one employee and is not the best choice regarding employee motivation boosters because, eventually, the other employees will feel left out.

But if you are already running an Employee of the Month program and it is falling a little flat, here are the six main reasons why this might be happening.

1. Bad selection criteria

There isn't a clear-cut criterion for why the employee is being recognized. Sometimes, the requirements aren’t measurable. This system could become problematic as you have an employee who doesn’t know why they are getting the recognition.

2. Focus is on recognition

When an Employee of the Month award is put on the table, workers often focus on achieving that instead of improving their performance and job role. This is especially true if the prize is a bonus.

It’s much more effective to have employees focus on business goals so that the group focus is on a shared purpose and is not blurred by a fixation on a gift.

3. A team cannot be an employee of the month

An ”Employee of the Month” award focuses only on one person’s achievements. This means they often overlook others who may have also worked equally hard that month.

In many companies, it is not a single person who achieves goals but rather a group of individuals. Unhealthy competition can fester if only one is singled out and rewarded for it. Others will feel demotivated and left-out and harbor resentment for the company and their peers.

4. Encourages unhealthy competition

Some competition is healthy in the workplace. However, most companies agree that having employees collaborate and cooperate is better for overall morale, and the “Employee of the Month” award does not foster healthy competition.

Other members might feel demotivated if they are not picked as the month's top employees. This demotivation means your employees may not perform better as they see no direct reward.

As Aubrey C. Daniels (CEO of Aubrey Daniels & Associates) puts it, “The real problem with EOM is that one person's success creates another person's failure, and if the award is truly desirable, it creates destructive internal competition.”

5. Managers think recognition is done with the reward

Recognition is more than just handing out an “Employee of the Month” award twelve times a year. Day-to-day recognition and appreciation are much better and create lasting memories for the employee.

Employers who adhere to strict reward programs like “Employee of the Month” think that’s enough and they do not need to do more. More often than not, this is not effective and does not motivate employees or enhance their productivity.

6. There are only twelve months in a year

Having only twelve months in the year means that only twelve people can realistically win the “Employee of the Month” award each year. If you have a company of 50 people, this could become problematic.

Many employees will feel overlooked, especially if they work hard and help the company succeed daily.

Go Beyond a Basic Employee of the Month

A monthly award isn’t enough to keep employees motivated. Empuls helps you create a recognition program that feels personal, meaningful, and truly rewarding.

Make Recognition Impactful

What needs to be the focus of employee of the month rewards?

Few would disagree that the 'ideal employee' is a good team player, reliable, seeks growth and improvement, spreads optimism and joy in the workplace, helpful, proactive, motivated, appreciative of others, and good at solving problems.

When the traits expected from a promising employee are so diverse and vast, the rewards should also be equally varied and comprehensive.

• A gesture of appreciation that periodically nudges employees to pursue these skills is a reliable motivator and driver of excellence.
• Instituting a weekly recognition system on a rotational basis could do wonders in boosting the morale of a team and help them lock in the gains.
• Recognize different deeds. If the most proactive employee who has pre-empted potential problems gets a pat on the back during the first week of the month, the next week, the employee who has been the best guide to a colleague should get an appreciation.
• Reward and recognize the values and not the person. This helps staff align themselves to the company's values vs. the performance of a particular individual.
• Financial benefits too.

It is easy to envisage how such a system would mean that most employees would get adequate recognition for their efforts over a certain period. It is incredibly beneficial as a conventional result-oriented recognition scheme could mean that several invaluable traits of valuable contributors would go unnoticed.

Also, it would help avoid several team members from not getting recognized at all.

Since it is undeniable having an efficient team of motivated employees will deliver better results than having a few standout performers in a large group, employers must set out to actively encourage team building.

Innovate, customize & institute your Employee of the Month Award

While it might appear slightly frivolous, it would also be beneficial to have recognition categories that focus on traits, behaviors, and practices not traditionally considered in employee recognition programs.

Examples of such categories could include:

• Most creative problem solver of the month
• An employee of the month who never repeated a mistake
• The calmest employee under pressure
• Conflict resolution champion
• Lead problem solver

Instituting such categories can have multiple beneficial effects on the team. Firstly, it encourages managers and team members to engage with each other in a broader array of areas of professional interest.

It is a valuable by-product of such an employee recognition program as far too often for the interaction between managers and employees is limited to targets, numbers, and graphs.

The second significant benefit of adding categories such as these is rather apparent. It helps instill holistic development in employees and reflects on what they need to work on.

Any day, an all-rounder employee is a better bet than someone who might lack as many skills as they possess.

Finally, adding these categories is also an efficient way to relieve stress and keep your office's environment light and fun. Many modern workplaces often end up being far too exacting of their employees and gradually start to cause stress-related and other illnesses.

Hence, it could be beneficial to the optimal functioning of the team that the employees remain cheerful, calm, and productive.

5 Employee of the month reward ideas

Recognizing employees for their hard work keeps them motivated and engaged. A well-planned Employee of the Month Award not only acknowledges their contributions but also sets a positive example for the entire team. Here are five Employee of the Month Rewards that go beyond just a certificate or a thank-you email:

1. Gift cards with personal choice

Instead of generic gifts, give employees gift cards or shopping vouchers so they can pick something they truly want. Whether it’s for a favorite restaurant, an online store, or a wellness experience, this adds a personal touch to the Employee of the Month Recognition and makes it more meaningful.

2. Extra paid time off (PTO)

An additional day off or a half-day of their choosing is a highly valued reward. It allows employees to recharge, spend time with family, or simply enjoy a break as a well-earned benefit. This makes the Employee of the Month Award feel special while reinforcing a culture that prioritizes work-life balance.

3. Exclusive experiences or memberships

Consider giving access to unique experiences such as concert tickets, spa days, or subscriptions to services like audiobooks, streaming platforms, or fitness apps. This keeps Employee of the Month Rewards exciting and tailored to individual interests.

4. Public recognition & workplace perks

Make recognition public by announcing it in company meetings, newsletters, or internal communication platforms like Empuls. Pair this with workplace perks like a prime parking spot, priority lunch service, or an office upgrade to give the recipient a VIP experience.

5. Learning & career development opportunities

Support career growth by offering sponsored training, online courses, or tickets to industry events. Employees appreciate opportunities to upskill, and investing in their development ensures long-term engagement. Employers can also use Empuls' tax-free fringe benefits to provide professional development rewards in a cost-effective way.

A strong Employee of the Month Recognition program should be personalized, valuable, and motivating. Whether it’s flexible perks, public appreciation, or professional growth opportunities, meaningful rewards ensure employees feel truly valued while strengthening workplace morale.

The best employee of the month alternative

Let's look at some healthy alternatives to the “Employee of the Month” award.

1. Peer-to-peer recognition

Peer-to-Peer recognition allows co-workers to give positive feedback and highlight their achievements. This program works daily, so recognition is frequent, unlike an “Employee of the Month” award.

Peers are more likely to know what is going on at work, so the reward feels less political and does not breed unhealthy competition.

With this program, peers can show recognition to those who have helped them with their work, achieve a job goal, or perform better. This type of award fosters encouragement amongst peers.

2. Multiple awards for employees

Instead of just having one “Employee of the Month” award, why not dole out awards for different categories or criteria?

For example, SnackNation recognizes its employees by giving out a Value Victor award to employees who exemplify the company's core values during a month. The award comes with preferred parking, a trophy, and a bag of snacks. .

It's good to note that there can be more than one Value Victor, meaning multiple employees can earn the award and receive recognition for that month.

Another example could be a problem-solver award for employees who worked under pressure to solve problems and find solutions. The “Problem Solver” award recognizes employees who can make a success out of chaos.

3. Collaboration of the month

A “Collaboration of the Month” award suits a team working on a project together. Instead of singling out one person to get rewarded, the whole team receives recognition.

This type of award fosters collaboration and cooperation amongst the employees, encouraging them to work together and drive workplace performance.

4. Going the extra mile program

Started by Staten Island University Hospital, the “Go the Extra Mile” Program rewards employees for quickly moving hospital patients around or helping the hospital improve efficiency.

It works because employees nominate each other to improve the department's work. Then, the leader or employer tallies these nominations to find the winner. This program puts the employees in the frontline of deciding who gets the award, providing a more democratic way of doing things.

5. Throw a "recognition day" with rewards

What boosts morale better than celebrating a recognition or appreciation day? Employers plan a day where they have a barbecue or a party to hand out awards for different actions.

6. Recognition through recognizing passions

The ad agency Omelet started a program called 60/60. It gives employees two hours a week to work on a project about which they are passionate. This program is about valuing your employees' passions and showing that you respect them as unique individuals.

Make employee of the month more meaningful with Empuls

Recognition needs to be timely, personalized and celebrated across the organization to make an impact. Empuls transforms this initiative into an engaging experience that employees genuinely appreciate.

✔ Turn recognition into a habit: Empuls enables peer-to-peer and manager-led appreciation, ensuring employees feel valued beyond a monthly award.

✔ Offer meaningful rewards: A one-size-fits-all reward rarely excites employees. Empuls lets you personalize incentives, from gift cards to exclusive perks, making recognition more impactful.

✔ Amplify achievements: Make recognition visible. Empuls’ social intranet ensures every award is celebrated publicly, reinforcing a culture of appreciation.

✔ Encourage continuous engagement: Recognition shouldn’t stop after a monthly award. Empuls helps build an ongoing culture of motivation with automated milestone rewards and engagement programs.

A well-designed Employee of the Month program should inspire, not just reward. Empuls makes recognition meaningful, ensuring employees stay motivated, engaged, and proud of their contributions. Create a culture of recognition now.

Key Takeaways

Simple changes can significantly improve employee recognition programs without requiring structural overhauls. Offering gift cards or shopping vouchers instead of fixed gifts gives employees the freedom to choose their rewards, making recognition more meaningful.

Regular feedback is essential—conducting surveys helps employers tailor recognition programs to employee preferences. Instead of focusing solely on financial incentives, companies should design programs that encourage a wide range of productive behaviors rather than just hitting performance targets.

The goal should be to foster team growth and motivation while avoiding unhealthy competition. Recognition should be frequent, well-distributed, and aimed at strengthening collaboration rather than creating rivalry. A balanced approach ensures that employees feel valued, leading to sustained engagement and better performance.