What are employee recognition platforms?
Recognition platforms are software tools that allow employers to implement structured employee recognition and reward programmes. They make it easy for peers, managers, and leaders to celebrate successes, milestones, and exceptional contributions from individual employees or teams. Common features include social shout-outs, points-based reward systems, service anniversary recognitions, and ways to align recognition with organisational values. These platforms make it easy to scale recognition programmes across large organisations or remote teams.
Employee recognition and reward are essential for attracting and retaining talent. Figures from Boostworks’ The heart of workplace engagement whitepaper, published in July 2024, show that 51% of employees believed direct recognition from managers positively impacted their morale and engagement. It highlights the behaviours that leaders want to encourage.
One of the most effective ways employers can foster a culture of recognition and appreciation is by implementing an employee recognition platform by offering tangible awards such as gift cards, experiences, or points that can be redeemed in a reward marketplace. Available to organisations of all sizes they streamline the process of acknowledging employee contributions, boost morale, and foster a positive organisational culture by making recognition easy, visible, and in many cases, customisable.
The platforms facilitate peer-to-peer recognition, where employees can recognise each other’s accomplishments, and managerial recognition, enabling leaders and managers to formally recognise employees’ hard work or significant contributions, often aligned with organisational goals or values. Achievements can be made visible across teams or organisation-wide through a newsfeed, leaderboard, or email announcements, reinforcing positive behaviour.
Recognition platforms can also help employers to gather useful feedback, via anonymous surveys that can be incentivised with rewards. In addition to identifying ongoing patterns and trends among staff, this feedback can help address issues and problems and invite suggestions for possible changes. Increasingly, recognition platforms have a focus on employee health and wellbeing. Some employees find it difficult to talk about problems or issues. A recognition platform can be a barometer for the mood of the workforce.
Key factors to consider when choosing a recognition platform include the location of the workforce. More people are now working remotely or in a hybrid pattern, which can lead to feelings of isolation. Managers who have been used to identifying contributions in a physical office space now need to recognise employee contributions remotely.
It is important to establish that a recognition platform has the flexibility to reach deskless workers and in the case of overseas employees, cross-border operational capacity. Can the platform integrate with the channels that employees are using every day, such as Outlook and Slack? Security is another consideration, particularly with regard to privacy, and confidentiality.
Recognition platforms can be customised to ensure rewards and incentives are based on individual preferences and achievements. Platforms that offer customisable parameters, for example, reward tiers, and nomination processes, enable the design of a recognition programme that aligns with the company culture and objectives.
What are the cost implications?
The costs depend on the size of the organisation and the range of features required. Many providers operate a subscription model. As well as the costs of the software, it is important to factor in the costs of the rewards and integration with existing HR systems that may be required. However, the return on investment (ROI) in terms of enhanced morale and increased retention and productivity provide a strong rationale for introducing a recognition platform.
Are there any tax or legal issues?
Cash gifts, such as gift cards, count as taxable income, but small one-time non-cash gifts may not be. Vendors and employers still must correctly report and classify the recognitions. Working closely with legal and accounting partners is advised.
What are the current market trends or developments?
Peer-to-peer recognition is becoming more widespread in a bid to facilitate team bonding, while gamification via the collection of points and badges is popular for driving engagement. Artificial intelligence (AI) is a key trend, which is starting to add increasing value to the recognition space. For example, OC Tanner’s Recognition Coach is a gen-AI tool that delivers in-the-moment micro-coaching to improve how employees communicate and recognise each other. The provider’s recognition platform also includes ‘Yearbook’, a system that compiles a personalised book of comments, photos, and videos from friends and colleagues in recognition of a special career anniversary. This can be presented digitally or in person to elevate the employee’s experience.
Who are the main providers and what types of schemes do they offer?
Providers of recognition platforms and software include Achievers, Blackhawk Network, Bonusly, Boostworks, Guusto, Motivosity, OC Tanner, Perkbox, Reward Gateway and TerryBerry. Their offerings range from simple peer recognition to multi-faceted programmes with service awards, performance bonuses, and personalised rewards catalogues. The most sophisticated providers offer systems and programmes to suit a range of recognition occasions from onboarding and everyday achievements to peer-to-peer recognition and career anniversaries.
