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In the ever-evolving landscape of the modern workplace, finding effective ways to reward employees for good performance is not just a nicety—it's a necessity.

According to HBR, a staggering 79% of employees cite a lack of appreciation as their primary reason for leaving their jobs. In contrast, organizations that prioritize recognition and rewards experience a 31% lower voluntary turnover rate.

Moreover, a recent survey has also highlighted the impact of employee recognition: 69% of employees say they would work harder if they felt their efforts were better appreciated, and 78% of employees report that being recognized motivates them in their job.

As organizations strive for excellence, recognizing the dedication and hard work of their team members has never been more crucial. That's why we've compiled this comprehensive guide featuring 50 stellar ways to reward employees for good performance while honoring their commitment to your company.

Let’s explore creative, impactful, and meaningful strategies that celebrate achievement and fuel success within your organization.

How to reward employees for good performance: 17 effective ways

Recognizing and rewarding employees for their hard work and outstanding performance is a crucial aspect of maintaining a motivated and engaged workforce. Effective rewards not only boost morale but also contribute to higher job satisfaction and increased productivity.

Here are the effective ways to reward employees for good performance.

1. Performance bonuses

Performance bonuses are a common and effective way to reward employees for their outstanding work. These bonuses are typically tied to specific performance metrics or achievements, such as meeting sales targets, exceeding project goals, or surpassing customer satisfaction benchmarks.

Performance rewards or bonuses provide employees with a direct financial incentive for their exceptional efforts and contributions. To maximize their impact, it's important to set clear and achievable performance targets, communicate the criteria for earning bonuses transparently, and ensure timely and fair distribution of rewards.

Many companies offer performance-based bonuses as a way to reward employees for achieving specific goals or exceeding performance expectations. These bonuses can be one-time payments or part of a structured incentive program.

For example: Google is known for its generous performance bonuses. They offer significant cash bonuses to employees who excel in their roles and contribute to the company's success.

2. Profit sharing

Profit-sharing programs are designed to distribute a portion of a company's profits among its employees. This approach aligns employees' interests with the financial success of the organization.

Profit-sharing can be structured in various ways, such as allocating a percentage of profits to eligible employees or using a predetermined formula. By sharing in the company's financial success, employees feel a stronger sense of ownership and motivation to contribute to the organization's growth and profitability.

Some companies share a portion of their profits with employees as a way to reward them for their contributions to the company's success. This can be distributed through bonuses, profit-sharing plans, or stock options.

For example: The container shipping company Maersk has a profit-sharing program that distributes a portion of the company's profits among its employees based on their individual and team performances.

3. Recognition and awards

Recognizing and rewarding employees through various forms of recognition and awards can have a significant positive impact on morale and motivation. This can include verbal praise, certificates, plaques, or other tangible tokens of appreciation.

Personalizing these acknowledgments to individual preferences and achievements makes them even more meaningful. Publicly celebrating employees' accomplishments during team meetings or company-wide events can also boost their sense of pride and engagement.

Consistent recognition reinforces a culture of excellence and encourages employees to continue delivering exceptional performance.

For example: Marriott International has a "Spirit to Serve Our Communities" program that recognizes employees who go above and beyond in their community service efforts. They receive awards and recognition for their contributions.

4. Professional development opportunities

Investing in employees' professional growth is a valuable way to reward their good performance. Providing opportunities for skill development, attending training programs, workshops, or conferences, and supporting further education can enhance their knowledge and capabilities.

Not only does this benefit employees personally and professionally, but it also demonstrates the organization's commitment to their long-term success. Customizing professional development plans to align with individual career goals and the company's needs can make this type of reward particularly impactful.

For example: Deloitte, a global professional services firm, offers its employees various professional development programs, including leadership training, mentorship opportunities, and tuition assistance for further education.

5. Work-life balance benefits

In today's fast-paced work environment, employees often struggle to maintain a healthy work-life balance. Providing work-life balance benefits is a valuable way to reward employees for their dedication.

These benefits can include flexible working hours, remote work options, or additional paid time off. By enabling employees to better manage their personal and professional lives, you show them that their well-being matters, which can lead to increased loyalty and commitment.

For example: Salesforce, a cloud-based software company, is known for its generous work-life balance benefits, including flexible working hours and the ability to work remotely. They also provide paid time off for volunteering in the community.

6. Wellness programs

Investing in the physical and mental well-being of your employees is a win-win strategy. Implementing wellness programs such as gym memberships, on-site yoga classes, or access to counseling services can help reduce stress and improve overall health.

Recognizing high performers with such wellness initiatives not only improves their quality of life but also demonstrates your commitment to their holistic well-being.

For example: Apple Inc. provides its employees with wellness benefits, including fitness reimbursement programs and mental health resources through its Employee Assistance Program.

7. Employee of the month/quarter/year

Traditional recognition programs like "Employee of the month" are still effective at acknowledging outstanding performance. These programs allow you to publicly celebrate an employee's achievements, often accompanied by a plaque, certificate, or a designated parking spot.

This recognition not only boosts the recipient's morale but also inspires others to strive for excellence, creating a culture of healthy competition.

For example: The retail giant Walmart has an "Associate of the Month" program where exceptional employees receive recognition, a special parking spot, and a certificate of achievement.

8. Peer recognition

While formal recognition is essential, peer recognition can be equally powerful. Encourage employees to acknowledge and appreciate each other's contributions. You can implement a peer-to-peer recognition system, where employees can nominate their colleagues for outstanding work. This fosters a sense of camaraderie and teamwork while reinforcing positive behaviors.

For example: LinkedIn has a "Kudos" feature that allows employees to give each other shout-outs and recognize their contributions publicly within the company's internal platform.

9. Personalized rewards and perks

Not all employees have the same preferences when it comes to rewards. To make your recognition efforts more impactful, consider offering personalized rewards and perks. Get to know your employees' interests, hobbies, or career goals, and tailor rewards accordingly.

This could range from tickets to a sporting event for a sports enthusiast, additional professional development opportunities for a career-focused individual, giving out learning rewards, or a spa day for someone who values relaxation.

For example: Airbnb offers a unique travel stipend to its employees, allowing them to explore different destinations and stay in Airbnb listings, aligning with the company's core business.

10. Flexible benefits packages

Employee benefits are a valuable form of recognition. Instead of offering a standard benefits package, consider providing flexible benefits options that allow employees to choose the perks that matter most to them.

This could include options like flexible work hours, remote work arrangements, additional healthcare choices, or the ability to allocate a portion of their compensation towards benefits of their choice. A flexible benefits package empowers employees to tailor their rewards to their specific needs and priorities.

11. Innovation time

Allocate dedicated time for employees to work on innovative projects of their choice. This can be a set percentage of their workweek or a specified number of days per month. Providing this autonomy allows employees to explore their creativity and potentially contribute to the company's growth through new ideas and solutions.

12. Promotions and advancements

One of the most significant forms of recognition and reward is the opportunity for career advancement. Promotions and advancements not only come with increased responsibilities but also higher compensation and recognition of an employee's skills and potential.

When employees see a clear path for growth within the organization, they are more likely to stay committed and motivated to perform at their best. Ensure that promotion decisions are transparent and based on merit to maintain a fair and motivating work environment.

13. Special projects and leadership roles

Recognize exceptional employees by involving them in special projects or assigning them leadership roles within the organization. These opportunities not only provide a new challenge but also serve as a clear demonstration of trust and confidence in their abilities.

Whether it's leading a high-impact project, mentoring junior team members, or representing the company in a key initiative, these roles can be immensely rewarding and motivating for high-performing employees.

14. Employee travel experiences

Offer employees the opportunity to embark on exciting travel experiences as a reward. This can include fully-paid vacations, weekend getaways, or travel vouchers. With efficient travel booking software, employees can seamlessly plan and book their trips, ensuring a hassle-free experience from start to finish. Travel not only serves as a refreshing break but also allows employees to create lasting memories. It can be a powerful motivator and a way to thank employees for their dedication. Travel not only serves as a refreshing break but also allows employees to create lasting memories. It can be a powerful motivator and a way to thank employees for their dedication.

15. Sabbaticals

A sabbatical is an extended period of leave with continued employment, often granted after several years of service. Sabbaticals provide employees with the chance to pursue personal interests, further their education, or simply recharge.

This extended break can be a unique and highly valued reward for long-term employees who have consistently demonstrated exceptional performance.

16. Community service time off

Encourage employees to give back to their communities by offering paid time off for volunteering or participating in charitable activities. This not only benefits the employees personally but also reflects positively on your company's corporate social responsibility efforts. It shows that you value their commitment to making a difference in the world.

17. Donation matching

Incentivize employees to contribute to causes they care about by implementing a donation matching program. When employees make charitable donations, the company matches a percentage or the full amount. This not only supports important causes but also reinforces the company's commitment to social responsibility and employee engagement.

Case Study: How Xoxoday Plum helped Capgemini in rewarding its high performing employees?

Capgemini, a global leader in consulting and digital transformation, faced challenges in rewarding its stakeholders through various means, including gift options, certificates, trophies, and vouchers from different brands and aggregators. The logistics of procuring and tracking these rewards became a significant issue.

After evaluating several options, Capgemini chose Xoxoday for the following reasons:

1. Wide variety of reward options: Xoxoday Plum offered an extensive range of rewards, including experiences, gift cards, and perks, simplifying the reward process by consolidating options under one platform.

2. Rewards dashboard: Xoxoday's rewards dashboard provided transparency and trackability for reward distribution, streamlining the process.

3. Responsive customer service: Xoxoday's commitment to service level agreements was crucial, ensuring timely support for Capgemini.

4. HRMS/Procurement system integration: Xoxoday Plum seamlessly integrated with Capgemini's internal software, reducing manual processes.

The solution provided by Xoxoday resulted in increased reward frequency, reduced rewarding time, and 100% customer issue resolution within service level agreements. Capgemini achieved greater efficiency in its reward process, and they plan to explore further leveraging rewards for engagement.

Xoxoday Plum successfully addressed Capgemini's rewarding challenges, providing a streamlined and efficient solution.

Do you also want to streamline your employee rewarding process? Get in touch with our employee rewards specialist.

7 Digital ways of rewarding employee for good performance with gift cards

Here are 7 digital ways of rewarding employee for good performance with gift cards.

1. Dining experiences

Gift cards for dining experiences are a delightful way to reward employees. These cards can be for popular local restaurants, national chain eateries, or food delivery services like ubereats or doordash. Employees can use them to enjoy a meal out with friends or family or have their favorite dishes delivered to their doorstep.

You might provide employees with gift cards to well-regarded restaurants in your city, ensuring a diverse range of culinary options to suit different tastes.

2. Retail therapy

Retail therapy gift cards allow employees to indulge in some shopping, whether it's for clothing, electronics, home goods, or personal items. These gift cards can be for popular retail stores, both brick-and-mortar and online.

For example, you could provide gift cards for well-known retailers such as amazon, target, or a favourite clothing brand, offering a wide array of shopping options.

3. Entertainment and leisure

Entertainment and leisure gift cards cover a broad spectrum of rewards, including movie theater gift cards, subscriptions to streaming services like netflix or disney+, passes to amusement parks, or tickets to concerts and sporting events.

For example, you could offer gift cards to popular movie theaters or theme parks, enabling employees to have fun and create lasting memories with friends and family.

4. Travel and adventure

Travel and adventure gift cards open the door to exciting experiences. They can include airline gift cards, hotel chain vouchers, or gift cards for travel booking websites, allowing employees to plan a getaway, vacation, or adventure trip.

For example, you might provide gift cards for well-known airlines like delta or american airlines, or for hotel chains like marriott or hilton, giving employees the flexibility to plan their dream trip.

5. Subscription services

Subscription service gift cards provide access to various online services. These can include streaming platforms like netflix, music streaming like spotify, or wellness apps for fitness and meditation.

For example, you could offer gift cards for popular subscription services like netflix, spotify, headspace (a meditation app), or a fitness platform like peloton, allowing employees to choose what aligns with their interests and lifestyle.

6. Gourmet food and beverage gift cards

Gift cards for gourmet food and beverage experiences can include vouchers for specialty coffee shops, high-end tea stores, artisanal bakeries, or gourmet food markets. Employees can use these cards to savor premium food and drink items.

For example, you might offer gift cards to a well-regarded local coffee roastery or a gourmet bakery known for its exquisite pastries and treats, allowing employees to savor exceptional flavors.

7. Bookstore gift cards

Provide employees with gift cards to well-known bookstores, both physical and online, such as Barnes & Noble or amazon. This allows employees to explore and purchase books of their choice, whether for leisure, personal development, or professional growth.

For example, you could offer employees gift cards to a local independent bookstore or a major online retailer like amazon, ensuring access to a wide variety of reading materials.

Case Study: How Freshworks Inc, used Xoxoday to automate and distribute $5000+ worth digital gifts within a few clicks.

Freshworks Inc., a prominent NASDAQ-listed SaaS company, partnered with Xoxoday to streamline the distribution of digital gifts worth over $5,000. The challenges Freshworks faced included the need to gift event participants in various global locations, complexities in incentivizing Account Based Marketing (ABM) and referral campaigns, sourcing local vendors, dealing with currency conversion issues, and lacking a personalized approach.

To overcome these challenges, Freshworks implemented Xoxoday's rewards platform and leveraged Zapier integration to create custom workflows for rewarding customers seamlessly. They utilized "Xoxo Codes" and "Xoxo Links" to:

1. Run customized referral campaigns, automating the distribution of localized rewards to referrers worldwide.

2. Incentivize ABM campaigns by offering personalized virtual meetings and increasing brand awareness.

3. Enhance event participation by sending digital gifts to speakers and participants across different regions.

Freshworks benefited from Xoxoday's extensive reward catalog, which includes options from over 21,000 choices across 75+ countries. They distributed $5,000+ in brand vouchers with just a few clicks, thanks to Xoxoday's user-friendly platform and Zapier integration. Xoxoday's tech support also helped create custom landing pages and simplified currency conversions for end-users.

Looking ahead, Freshworks plans to use Xoxoday for virtual lunches and incentivizing internal teams for driving event registrations, further leveraging the platform's flexibility and robustness.

Sandeep John from Freshworks praised Xoxoday's experience, highlighting the platform's ability to address their gifting challenges effectively.

32 More ways to reward employees for good performance

Here are 10 more ways to reward employees for good performance

1. Flexible work arrangements

Offer employees the flexibility to choose their work hours, work remotely, or have compressed workweeks. This allows them to better balance work and personal life.

2. Health and wellness initiatives

Implement programs that promote employee well-being, such as on-site fitness classes, meditation sessions, or access to mental health resources.

3. Personalized thank-you notes

Write personalized thank-you notes expressing appreciation for an employee's specific contributions, highlighting their individual achievements.

4. Employee-designed office space

Allow employees to have a say in the design and decor of their workspace, creating a more personalized and comfortable environment.

5. Family-friendly benefits

Family-friendly benefits provide benefits that support employees with families, such as on-site childcare, flexible parental leave policies, or assistance with school-related expenses.

6. Employee stock ownership plans (ESOPs)

Offer employees the opportunity to become partial owners of the company through stock ownership, aligning their interests with the company's success.

7. Surprise work celebrations

Organize unexpected celebrations or events at work to recognize achievements or milestones, creating a fun and festive atmosphere.

8. Access to exclusive events

Offer employees tickets or access to exclusive events, concerts, or shows as a reward for their exceptional performance.

9. Employee recognition in company publications

Feature outstanding employees in company newsletters, magazines, or social media to publicly acknowledge their contributions and boost their visibility within the organization.

10. Professional networking opportunities

Provide high-performing employees with opportunities to attend industry conferences, seminars, or networking events. This not only rewards them but also helps them expand their professional network and stay updated on industry trends.

11. Skills swap program

Encourage employees to share their unique skills and knowledge with colleagues through a "Skills swap" program. This can be a platform for employees to teach workshops or lead training sessions, fostering a culture of continuous learning and collaboration.

12. Employee appreciation events

Host exclusive events such as private movie screenings, themed parties, or unique dining experiences for high-performing employees and their families, creating memorable moments of recognition and celebration.

13. Give them handwritten notes

Take a personal approach by writing handwritten notes expressing your appreciation for their hard work and contributions. A heartfelt message can have a profound impact and make employees feel valued and recognized.

14. Allow them to leave early

Surprise high-performing employees by letting them leave work a few hours early. It's a simple yet effective way to provide them with some extra leisure time to relax and enjoy their personal lives.

15. Provide them with a health club membership

Encourage a healthy lifestyle by offering employees a health club membership or fitness class subscription. This not only promotes physical well-being but also shows that you care about their health and work-life balance.

16. Bring them breakfast

Organize a surprise breakfast for the team or the individual achiever. A delicious breakfast spread can boost morale and set a positive tone for the day, fostering a sense of camaraderie and appreciation.

17. Let them work from home for a day

Grant high-performing employees the flexibility to work from home for a day. This provides a change of scenery and allows them to work in a comfortable and personalized environment.

18. Watch a movie in the office

Arrange a movie screening at the office during lunchtime or after work hours. Let employees vote on the movie, provide popcorn and snacks, and create a relaxed atmosphere for them to unwind and enjoy.

19. Provide them with event or festival tickets

Offer tickets to concerts, sports events, or cultural festivals that align with your employees' interests. This allows them to enjoy memorable experiences and create lasting memories.

20. Change the dress code periodically

Introduce "Casual fridays" or themed dress-up days to add a fun and relaxed element to the workplace. This change in the dress code can make the work environment more enjoyable.

21. Post their accomplishments somewhere public

Celebrate employees' achievements by featuring them on a dedicated bulletin board, company newsletter, or the company's social media platforms. Public recognition can boost their confidence and motivation.

22. Give them company swag

Provide employees with company-branded merchandise such as t-shirts, water bottles, or customized desk accessories. This not only promotes company pride but also serves as a tangible reminder of their achievements.

23. Language classes

Offer language classes to help employees improve their communication skills. These classes can be tailored to the languages that are most relevant to their job roles or personal interests. Learning a new language can enhance employees' abilities to collaborate with international colleagues, serve customers from diverse backgrounds, or simply enrich their cultural experiences.

24. Cultural celebration days

Host events to celebrate various cultural holidays and traditions. This fosters a sense of inclusion and diversity within the workplace. Employees from different cultural backgrounds can share their traditions, food, and customs, promoting a more inclusive and harmonious work environment.

25. Professional photoshoots

Arrange for professional photoshoots for employees and their families. This reward allows employees to create lasting memories and high-quality family portraits. It can be especially appreciated for capturing milestones, such as anniversaries or significant life events.

26. Book club or learning circles

Create a company book club or learning circles around specific topics. This encourages continuous learning and discussion among employees. Reading and discussing books or learning materials related to their field or personal development can lead to valuable insights and shared knowledge.

27. Tech gadgets

Provide the latest tech gadgets or accessories as rewards. This includes items like smartphones, tablets, noise-canceling headphones, or other cutting-edge technology. Such rewards can appeal to tech-savvy employees and enhance their work efficiency and personal enjoyment.

28. Milestone celebrations

Recognize work anniversaries with special celebrations and awards. Milestone celebrations can include personalized gifts, certificates, or dedicated events to honor employees' loyalty and commitment to the organization. These celebrations create a positive workplace culture and reinforce long-term relationships.

29. Financial counseling

Offer financial planning and counseling services to help employees manage their finances. Financial wellness programs can provide valuable advice on budgeting, investing, debt management, and retirement planning, contributing to employees' overall well-being and reducing financial stress.

30. Meditation rooms

Designate quiet spaces for meditation and relaxation. Meditation rooms provide employees with a sanctuary to de-stress, unwind, and refocus during the workday. These spaces support mental health and productivity while demonstrating the company's commitment to employee well-being.

31. Health challenges

Organize wellness challenges with rewards for achieving health goals. These challenges can encourage employees to adopt healthier lifestyles through activities such as step challenges, weight loss competitions, or mindfulness programs. Rewards might include fitness trackers, wellness vouchers, or additional time off.

32. Employee-owned side projects

Support and fund employees' side projects or entrepreneurial ventures. This unique reward allows employees to pursue their passions and interests outside of their regular job. By backing their side projects, the company shows appreciation for employees' creativity and entrepreneurial spirit, potentially leading to innovative ideas and business opportunities.


Investing in your employees' happiness and recognizing their hard work is the secret sauce to a thriving workplace. By implementing these creative ways to reward employees for good performance, you not only boost morale but also foster a culture of excellence.

Remember, a little appreciation goes a long way in creating a team that's motivated, loyal, and ready to conquer new horizons together.

So, let the rewards begin and watch your employees shine brighter than ever!

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