Recognition Done Right vs Wrong: Your Guide to Not Messing It Up

If you’re reading this and think your company does a great job recognizing its employees, here’s a hard truth: you’re probably wrong.

Employee recognition is broken in too many workplaces. Sure, companies might check the box on acknowledging their employees, but let’s be honest: a 10-year-old keychain engraved with your company logo isn’t exactly screaming, “we value you.” 

For every heartwarming shoutout that inspires an employee to keep at it, there’s a tone-deaf “Great job! - Management” email that leaves them questioning whether their work matters.

Most employee recognition programs fail because they focus on optics over impact. They treat recognition and rewards as the end goal and miss the forest through the trees. When recognition is done wrong, it’s a waste of time and money. When done right, it catalyzes better-performing teams, smarter skill development, and longer employee tenure.

Said differently, companies that do recognition right are the ones that come out on top. 

Recognition done wrong

Before we dive into what works, let’s shine a light on what doesn’t. These common missteps undermine the potential of employee recognition and leave teams feeling frustrated and overlooked. In certain cases, these practices make employees feel worse. 

1. Anniversary gifts that completely miss the point. Think back to the last company gift you got for hitting a milestone. Did it feel meaningful? Or did it end up in the junk drawer with your mystery cables and wires? Keychains and plaques are performative, not genuine, gestures. If the gift doesn’t reflect thoughtfulness, it’s not recognition. It’s clutter.
   
2. Mad Lib-style thank yous. A thank-you message that could’ve been copy-pasted to anyone is worse than no thank you at all. Generic “Good job, team!” emails don’t make individuals feel seen, nor do they communicate what about the work was exemplary. If recognition becomes a Mad Libs exercise (“Thank you for [INSERT TASK HERE]”), someone has not understood the assignment.
   
3. Putting the full burden on managers. Recognition that only flows from the top down creates a culture of dependence. Employees start feeling like their peers’ opinions don’t matter, even though their peers likely experience and understand their work better than anyone. Getting your approach to traditional, top-down recognition is a good place to start, but the real magic happens when you invite your full team to help champion and grow your culture. Peer-to-peer recognition adds a vital layer of visibility and appreciation.
   
4. Participation awards. Sure, consolation prizes work for 5-year-olds in youth soccer leagues. But giving everyone recognition, just to be fair, dilutes its impact. Employees don’t want praise for showing up—they want meaningful acknowledgment of their efforts and wins. Recognition should be earned, not handed out like colorful ribbons.
   
5. Out-of-sight, out-of-mind programs. Recognition can’t wait for the end-of-year awards ceremony or bi-annual review cycle. Infrequent programs make employees feel undervalued in real time. Recognition should be as dynamic and immediate as the work itself.

Recognition done right

Now that we’ve covered the pitfalls, let’s explore how to give effective recognition, transforming acknowledgment into a powerful driver of engagement and performance.

1. Be personal and specific. A meaningful “thank you” starts with specifics. What did your coworker do? Why did it matter? When you recognize someone’s unique contribution, you’re not just saying “I see you”—you’re saying “I value your skills and approach.” Best yet, providing specifics highlights and reinforces winning behaviors for the company to emulate.
   
2. Be timely and frequent. There’s nothing more demotivating than accomplishing a big task only to be met with crickets. Recognition works best in the moment, not weeks or even months later. Don’t save sharing appreciation for only the big things, either. Turn recognition-giving into a habit —aim to do so at least weekly—and acknowledge the small but mighty wins, too. This is the best way to help employees adopt the habits and behaviors that will set them, and the company, up for greatness.
   
3. Encourage recognition among peers. Empower employees to celebrate each other’s wins. Peer-to-peer recognition builds connections and creates trust. Plus, who better to spot a job well done than the employees in the trenches together? Besides building a culture of appreciation, this also generates digestible data that managers can use to spot behavioral patterns, team trends, and opportunities for coaching.
   
4. Connect recognition to company core values. The best recognition doesn’t reward good work; it fuels good work. When company values and goals are continuously visible and reinforced, they're more likely to influence and inform behaviors that drive employee growth and company wins.
   
5. Pair recognition with feedback. Recognition and feedback are two sides of the same coin. Celebrate the wins, but also use recognition moments as opportunities to discuss growth and future potential. This turns acknowledgment into a growth tool.

The everyday impact of effective recognition

When companies get recognition right, they unlock outcomes that extend beyond employees feeling appreciated and toward a thriving company culture that prioritizes recognition, feedback, and growth. Here’s what meaningful recognition creates in the workplace:

1. More connection and collaboration. Frequent recognition is the glue that strengthens bonds within and between teams. When employees consistently feel appreciated, it builds trust, respect, and camaraderie. Teams become more aligned, support flows more freely, and collective success is unlocked.
   
2. A consistent stream of essential skills and behaviors. Effective recognition doesn’t just celebrate wins—it spotlights the skills and behaviors that made those wins possible. This constant reinforcement helps employees connect the dots between their efforts and the bigger picture. Over time, this stream of recognition becomes a blueprint for success, encouraging everyone to mirror the behaviors that lead to better performance.
   
3. A safe environment for feedback. Let’s face it: feedback is only effective if people are open to hearing it. Recognition creates that openness. It builds a foundation of trust, signaling to employees that their contributions are valued and that feedback is there to help them grow, not tear them down.
   
4. Motivated employees who strive to grow. Meaningful recognition lights a fire under employees, propelling them to keep up the great work. When hard work is noticed, employees don’t just maintain the status quo, they strive to do even better. Recognition becomes a self-sustaining cycle of motivation and improvement.
   
5. A culture that retains top talent. Talented employees have options, and if they don’t feel valued, they won’t stick around. Effective recognition ensures your best people feel seen and appreciated, making it far less likely they’ll start eyeing the door. It’s a proven way to build loyalty and reduce turnover.
   
6. Big business results. The math here is simple. Engaged employees are productive employees. By keeping teams aligned and motivated, recognition drives outcomes that matter. Implementing an effective employee recognition program isn’t a perk. It’s a business strategy. And the companies that know and practice that are the ones that win.

Recognition Done Right: your examples

Do you have examples of recognition done right at your organization? We want to hear from you! Share your best practices and examples on LinkedIn, and make sure to tag Bonusly and use the hashtag #RecognitionDoneRight

The takeaway

Recognition done right starts with appreciation but ends somewhere much more impactful: a workplace where everyone feels empowered to do their best work. Stop settling for the status quo of lip service, empty gestures, participation trophies, and ineffective programs. With the right tools and mindset, you can turn recognition into a game-changing business strategy.

It’s time to get it right, and Bonusly is here to help. Our approach makes recognition easy and impactful for today’s work-from-anywhere teams. Get started with a demo.