9 Benefits of Rewarding People Employee of the Month

Companies like recognizing their most valuable employees with monthly awards. The importance of these awards can be seen in their many benefits, particularly regarding employee satisfaction and retention. The rewards given to recipients include increased job security or company bonuses.

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1. Increased Retention and Satisfaction

Rewarding employees with an employee of the month award encourages them to remain loyal to their company. When a person feels appreciated by their company, there is a higher likelihood that they will remain with that company for a long time. When employees know they are being rewarded for doing a good job, they have more incentive to work hard and do more good work in the future. The higher the employee’s satisfaction with their job, the more likely they are to stay with the company.

3. Increased Productivity

Employees who are more satisfied and loyal to their companies are highly likely to be more productive. When employees know they will be rewarded for doing a good job, they are highly likely to work harder and think more creatively. Using employee of the month plaques allows managers to record who deserves to be rewarded and when. Employees will work hard to be on the list, increasing their company’s productivity.

3. Improved Customer Service

In addition to an employee of the month award improving employee satisfaction, it also improves the company’s customer service. Customers notice differences in the level of customer service depending on the employee they are interacting with. For example, a higher quality level of customer service will be provided to customers when employees have been rewarded for doing a good job.

4. Improved Community Relationships

When employees have been awarded for doing a good job, their relationship with the community is also improved. For example, a manager will be more willing to listen to their employees’ concerns and develop good policies if rewarded for their hard work. The result is that the company will have better relations with the community and will be more likely to receive favorable press.

5. Improved Brand Recognition

When employees are proud of the company they work for, they will spread the word about how well the company treats its employees. Customers can then hear about these rewards and be compelled to buy products from that company. The company’s brand recognition is greatly improved through employee recognition awards. The improved customer loyalty will also contribute to a strong brand image of the company.

6. Motivates for Higher Quality Work

When an individual knows that their company rewards employees for doing good work, they will be motivated to do a higher quality of work. Knowing that the company will not tolerate poor quality work makes individuals more likely to produce higher quality work. The increased employee motivation results in more effective employees and, ultimately, a better final product.

7. Reduces Turnover Costs

One main benefit of rewarding employees is that it reduces turnover costs, which can be very expensive for companies. By giving employees a chance to be recognized for their hard work, it is much easier to retain them and keep them from moving on to another job. When companies treat their employees well, more of them are likely to stay with the company longer. Retention helps minimize talent acquisition and onboarding costs.

8. Improves Employee Relationships

When employees are rewarded for their hard work, it helps them develop a better relationship with their manager, who acts as a direct customer to the employee. The employee and manager can understand each other more closely and work together in a way that results in a more productive relationship for all involved. The teams awarded an employee of the month recognition plaque is more likely to work together, resulting in a better product and team culture.

9. Helps Attract Talents

Experienced people will be more willing to work with a company that rewards its employees. People will be more interested in joining a company if they know there will be higher salaries and other benefits. The employee of the month award is one way to entice talented people to work with your company. The hiring process for talented employees is often more demanding, so giving potential employees a sense of satisfaction for doing a good job makes it more likely they will be attracted to the company.


The value of employee recognition can be seen in its many benefits to the company, including increased productivity, customer service, community relations, and brand recognition. Expectations for higher-quality work and happier employees are also a benefit of an employee of the month award.

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