37 Employee Reward Ideas to Motivate and Retain Your Team

Even though companies invest heavily in engagement metrics, they often see minimal movement. However, if you include recognition and employee rewards into the mix, you can significantly boost engagement metrics— absenteeism can decrease by 40%, companies become 21% more profitable, 85% of employees take more initiative, 48% care more about the workplace, work 12% harder than their peers, and are 22% more likely to stay than disengaged employees. 

The benefits of investing in employee rewards far outweigh the resources required. With that in mind, let’s explore 37 creative, flexible, and effective employee reward ideas that you can start implementing today to enhance engagement in your workplace.

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37 Employee Reward Ideas for the Modern Workplace

1. Handwritten Thank-You Notes

Personalized thank-you notes are a simple, old-school gesture that never goes out of style and that can have a profound impact, especially when managers or peers take the time to express sincere appreciation. Receiving a tangible acknowledgment allows employees to revisit the sentiment when they need motivation, reinforcing their value to the team.

Pro Tip: Stock your office with quality notecards and encourage leaders to write two thank-you notes per week.

2. Employee of the Month Awards

A classic yet effective method, Employee of the Month awards are evergreen in the workplace. To enhance transparency and inclusivity, consider allowing employees to vote for the recipient or a rotating recognition committee. Instead of relying solely on manager input, allow teams to vote. This fosters a sense of community, shared appreciation and encourages camaraderie.

Real-World Example: Atlassian rotates “Legend Awards” every month based on peer feedback in their internal platform.

3. Service Milestone Celebrations

Recognition shouldn’t be only for tasks well done at work—you should also recognize the employee who achieves a major milestone, like a work anniversary. Even though the age of employees who work in a single company for 30 years has passed, marking 1-, 3-, 5-, or 10-year anniversaries shows employees their loyalty and dedication are appreciated. Include a personal message from leadership, a custom gift, or a celebratory lunch.

Pro Tip: Use a digital tool like Qarrot to automate milestone tracking so no one is overlooked.

4. Peer-to-Peer Recognition Programs

Peer-to-peer recognition is a great way to give employees the power to acknowledge one another. Employees love to get praise and appreciation from their fellow team members, with whom they "share a trench” with, sometimes even more than they do from their managers or CEO.

Implementing a structured program encourages regular public or private acknowledgment, through micro-rewards tied to core values, strengthening team bonds and morale.

Why it works: Recognition from colleagues who understand the day-to-day is often more meaningful than top-down praise.

5. Public Acknowledgment in Meetings

Meetings are ideal for quick wins, and a great reward idea to praise, recognize, and celebrate your employees' achievements. Dedicate five minutes each week to shout out team members for achievements, big or small. Public recognition not only honors the individual but also sets a positive example, motivating others to excel. A company-wide gathering is an even bigger stage for this! 

Tip: Vary the format—try “Win Wednesdays” or “Monday Moments of Wow.”

6. Spot Bonuses

Unexpected financial rewards for going above and beyond can spark motivation. Whether it’s a $50 gift card or a $500 bonus, just ensure it's tied to specific actions or outcomes, aligning rewards with company values.

Best Practice: Publish spot bonus criteria to avoid perceptions of favoritism.

7. Professional Development Opportunities

People love to learn new things and become better at what they do. Learning and growth opportunities are top drivers of engagement, especially for Gen Z and Millennial employees. And one of the best ways how to do that is through professional development opportunities at work, which signals a commitment to their career progression, enhancing job satisfaction and performance.

You can provide your employees with access to courses, certification programs, conference tickets, training resources or even a library budget to buy books! 

Pro Tip: Survey your team quarterly on their upskilling interests.

8. Flexible Working Hours

Flexibility can be more valuable than money. Offering flexible schedules or remote work options as rewards acknowledges employees’ need for work-life balance, contributing to increased productivity and well-being.

If you don’t have flexible working hours as a default state in your company, you can provide it through your recognition program. For example, you can give your high performers additional remote days or compressed workweeks.

Real-World Insight: HubSpot found that flexible hours were among the top three benefits cited in their internal employee engagement surveys.

9. Team Outings

You can organize team events for different teams or departments. Team-building activities, such as bowling, escape rooms or outdoor adventures, promotes camaraderie and provides a refreshing break from routine tasks.

Why it matters: Social cohesion improves collaboration, and shared memories build stronger teams.

10. Gift Cards

Digital gift cards are an evergreen employee reward idea because they're quick, scalable and they can be tailored to individual preferences, serving as effective tokens of recognition for various achievements. Just make sure they're relevant—Amazon, local restaurants, or niche services like Audible are usually a hit.

Tip: Let employees choose their gift card vendor from a curated list.

11. Wellness Programs

Wellness options should be included in your employee reward program, especially in today’s stressful work environment. Wellness rewards like subsidized gym memberships, massage vouchers, or meditation app access show that you care about your team’s physical and mental health, reducing burnout and enhancing engagement.

Best Practice: Offer a monthly wellness stipend so employees can choose what works best for them.

12. Employee Appreciation Day Events

Having a designated employee appreciation day where you focus on celebrating your employees' contributions is a great way to foster a culture of gratitude. It’s also a great opportunity to ensure consistent recognition across the organization by marking your calendar with these regularly scheduled events and preparing for it.

For example, yo can pick a day quarterly to celebrate your people with food, games, giveaways, or shoutouts. Even remote teams can enjoy virtual lunches or trivia games.

Pro Tip: Use this day to highlight values-based contributions from across departments.

13. Social Media Shout-Outs

Highlighting employee accomplishments on social media platforms is like appreciating your employees but on steroids. It amplifies the impact of the recognition, showcasing the company’s appreciation to a broader audience.

You prepare a post for a platform like LinkedIn to showcase success stories or an employee's outstanding work. You can also have people share the post for more visibility— a simple but effective employee reward idea.

Note: Always get the employee’s permission before posting publicly.

14. Personalized Gifts

Think beyond swag. Thoughtful, personalized gifts require a bit more preparation, but the effects they bring amply justify the cost. It also demonstrate attention to detail and a genuine appreciation for individual contributions.

It doesn’t have to be something big, but it should reflect the employee’s personality—an engraved notebook for a writer or custom artwork for a designer.

Pro Tip: Keep a “favorites” list of employee hobbies or wish list items.

15. Lunch with Leadership

How often do your employees get the chance to sit down with senior leadership (or C-suite) and present their ideas to them? Creating opportunities for informal connection between executives and team members encourages open communication, idea sharing, and a sense of inclusion.

Example: Schedule monthly “Lunch and Learns” with rotating employees and leadership.

16. Employee Recognition Wall

Set up a digital or physical space in your office or intranet to showcase recent wins, new hires, and birthdays. An employee recognition wall serves as a constant reminder of valued contributions, inspiring others to strive for excellence.

Bonus: Rotate who curates the wall each month to keep it fresh, or use Qarrot's digital signage app to display praises and celebrations on any office screen.

17. Experience-Based Rewards

Rather than objects, offering experiences, like concert tickets, cooking classes or art museum passes, provides memorable rewards that resonate personally with employees.

Pro Tip: Partner with local vendors to offer discounted experiences.

18. Office-related gifts

Office-related gifts can be any tools, big or small, that enhance comfort or productivity in the workspace:

• Personalized journals
• Desk calendars/organizers
• Adjustable (laptop) desks
• Ergonomic chairs
• Palm rollers
• Wireless chargers
• Noise-canceling headphones
• Coffee mugs
• Art
• Dust/Snow/City globes

Idea: Let employees choose from a list of curated workspace upgrades.

19. Employee Spotlight in Newsletters

You can create a dedicated space in your weekly or monthly internal newsletters to feature your employees' stories, successes, and achievements. 

Pro Tip: Rotate responsibility for writing the spotlight to engage different departments.

20. Time-Off Awards

Who doesn’t like an additional day off? Granting half-days, bonus vacation time, or “mental health days” as recognition for for exceptional performance acknowledges hard work and provides valuable rest, contributing to overall well-being.

Note: This reward reinforces work-life balance and helps prevent burnout.

21. Mentorship Opportunities

Employees love to learn and grow. So creating a structured mentorship program where top performers can mentor or be mentored is an excellent way to support professional growth, knowledge sharing, and career development within the organization.

Real-World Example: LinkedIn pairs employees cross-functionally to build broader company knowledge.

22. Office Celebrations

If you learn anything from the show “The Office,” it's that you can celebrate anything at work with cake and a party. So don’t be shy about celebrating birthdays, cultural holidays, or project launches with some good ol’ comfort food. It adds rhythm and joy to the workplace and fosters a positive and cohesive work environment.

Tip: Be inclusive by offering alternatives for those who don't celebrate birthdays.

23. Charitable Donations

Making donations to charities chosen by employees reflects shared values and demonstrates corporate social responsibility. If you know they cherish the environment, finding a charity that helps save the planet and donating to it would be an excellent employee reward idea. This aligns company values with employee passions.

Bonus: Organize a volunteer day for a team-building + give-back combo.

24. A yearly subscription

Offering yearly subscriptions to services like streaming platforms or magazines can be an excellent way to show appreciation for employees’ interests. It’s a reward that keeps on giving.

Pro Tip: Poll employees annually to refresh the list of options.

25. Surprise Treats

The best thing in the morning is when someone surprises you with coffee (or tea) and snacks for breakfast. The surprise element adds a layer of delight and reinforces a culture of appreciation.

26. A houseplant

A houseplant can be a great employee reward when done right. Plants brighten workspaces and improve air quality. Gifting aesthetically pleasing houseplants enhances the workspace and symbolizes growth, contributing to a pleasant and inviting environment. However, this is a case where bigger isn’t always better— choose a stylish, low-maintenance variety and add a fun card with care instructions.

27. Employee Surveys for Recognition Preferences

Not everyone wants public praise—some may prefer private notes, others thrive on stage time. You can simply solicit feedback on employees' preferred recognition methods ensures that rewards are meaningful and tailored to their individual preferences. Usually, if you provide people with an opportunity to share their preferences, they will take it.

28. Team Recognition Awards

Recognition shouldn’t be only for individuals— acknowledging the collective efforts of departments or project teams reinforces collaboration and highlights the importance of working together towards common goals.

Pro Tip: Include a trophy or rotating plaque to make it fun.

29. Personal Development Books

Providing personal development books are a great way to support continuous learning and demonstrates investment in employees’ holistic development. You can create a curated library of business and personal growth books or, better yet, offer stipends so employees can choose their own.

30. Cocktail party

A cocktail party (or "happy hour") can be a great employee reward idea, especially if you have the budget to get a true cocktail master to mix drinks for you and your colleagues. It offers a relaxed setting for employees to unwind and celebrate achievements or milestones together.

Tip: Include mocktails and snacks for inclusive participation.

31. Employee Idea Implementation

Recognizing and implementing employee suggestions fosters a culture of innovation, encourages ownership and shows that their input is valued and impactful.

Tip: Create a digital “Idea Box” with voting to increase transparency.

32. Learning Stipends

Offering learning stipends or an annual budget per employee for certification programs, courses, and platforms like Udemy, Coursera, or MasterClass empowers employees to take charge of their development, aligning personal growth with organizational goals.

33. Recognition Badges

When you have a digital platform for recognition, you can implement digital badges for accomplishments which add a gamified element to recognition. This way, their awards and recognitions can live in their Slack profiles or internal platforms and spark pride and friendly competition.

34. Student Loan Reimbursement/Payoff Program

Considering most of your Millennial and Gen-Z employees have student loans (and they’re not small), offering monthly reimbursements toward student debt would be a great reward for them. Assisting with student loan repayment addresses a significant financial burden for many employees, enhancing loyalty and financial well-being.

Note: Even $50/month can make a meaningful difference.

35. Employee Blogs

Your employees know a lot so give them the opportunity to share their insights, expertise, or passion projects on the company blog. It builds their profile, enriches your content and recognizes their thought leadership.

Related article: 5 Content Strategies That Can Boost Employee’s Online Engagement

36. Podcast with the Employee

A team member did something extraordinary? Offer to interview them for a monthly podcast episode and let them share stories, wins, or lessons learned. These initiatives help fostering a sense of pride and community.

37. Work-Life Balance Initiatives 

Last but not least are work-life balance reward ideas. Today’s workplace is quite stressful for employees, so implementing policies that promote work-life balance, such as flexible scheduling or mental health days, demonstrates a commitment to employees’ overall well-being and shows that you care about them beyond KPIs. Another example is to support boundaries through “no-meeting” days, email-free evenings, or access to therapy services.
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Conclusion

Employee rewards are more than just gestures of appreciation—they’re a strategic investment in your company’s success, and a powerful tool to drive engagement, retention, and performance. By implementing any of these 37 employee reward ideas, you can create a workplace where employees feel valued, appreciated, and driven to perform at their best.

Remember, the key is personalization—understanding what truly motivates your employees and tailoring recognition accordingly allow you to build a rewards program that’s dynamic, values-based, and human-centric.

And if you’re unsure where to start or how to scale your recognition efforts across teams and locations, consider partnering with a recognition platform designed for HR professionals like you. Book a demo today—we’ll walk you through it, step by step.

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