Employee recognition has a measurable impact on workplace culture. When employees feel appreciated for their work, they become more motivated, more engaged, and more connected to their team’s success. This is why many organizations implement an employee of the month program as a simple but powerful way to highlight outstanding contributions.
A thoughtful program supported with meaningful rewards, such as flexible digital gift cards through Toasty, helps reinforce positive behaviors and strengthens your culture. Below, we walk through everything you need to build a fair, motivating, and scalable employee of the month initiative.
Why Employee Recognition Matters for Workplace Culture
Most employees genuinely want to excel at work. Even if people joke about Mondays or count down to Friday, they take pride in doing meaningful work and being valued for it.
Employee recognition plays a big part in creating that positive environment. Research consistently shows that fulfilling workplaces share key characteristics including:
Variety in day to day responsibilities. Employees feel energized when they can use diverse skills.
Support, acknowledgment, and fair rewards. Consistent, transparent recognition systems strengthen trust and morale.
Clear processes. Employees know what qualifies for raises, awards, and advancement.
Growth opportunities. Professional development is accessible and encouraged.
When your employee of the month program aligns with these principles, it becomes more than a routine announcement. It becomes a strategic driver of engagement.
Steps to Build a Strong Employee of the Month Program
Follow this structured guide to design a program that motivates employees while keeping the selection process fair and transparent.
1. Define the Purpose of Your Program
Before setting criteria, decide what you want your employee of the month award to accomplish. Your goals might include:
• Boosting morale
• Encouraging teamwork
• Improving customer service
• Highlighting innovation or leadership
• Supporting retention
Keep your goals focused. Three to five clear objectives is a good target.
2. Create a Selection Committee
A fair and credible program depends on a balanced evaluation process. A committee prevents bias and increases employee trust.
Tips for forming your committee:
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Choose the right size. Groups of three to seven work well.
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Include a mix of roles. HR, managers, and peer representatives help ensure diverse perspectives.
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Set roles and responsibilities. For example, some members gather nominations while others lead evaluation discussions.
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Decide how winners are chosen. Consensus or a structured voting system both work.
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Rotate members regularly. Refreshing the committee every six to twelve months protects fairness.
3. Establish Clear and Measurable Criteria
Employees should understand exactly what it takes to be nominated and selected. Consider criteria such as:
• Job performance
• Teamwork and collaboration
• Customer service excellence
• Leadership or initiative
• Innovation and problem solving
• Commitment to learning and development
4. Select Rewards That Truly Motivate Employees
Recognition only works when the reward feels meaningful. Pair public celebration with a concrete incentive that employees appreciate.
Examples include:
• Digital gift cards through Toasty
• Small bonuses
• Extra PTO
• A premium parking spot for the month
• Education reimbursement
• Company donation to a nonprofit of their choice
• Choice of an upcoming project or assignment
• Travel credits or local experience vouchers
If you are unsure what employees prefer, send a quick survey.
Choice based rewards like the Toasty Choice Card are often ideal because different employees value different things.
Employee of the Month Program Dos and Don’ts
Dos
• Use clear and visible criteria
• Keep the evaluation process transparent
• Offer rewards that matter to employees
• Recognize a variety of strengths and qualities
• Celebrate winners publicly in meetings, email, or internal channels
Don’ts
• Allow favoritism to influence decisions
• Use vague or subjective criteria
• Exclude peer insights
• Give repeat awards too frequently
• Neglect tracking whether the program is achieving its goals
Following these guidelines helps ensure the process feels fair, motivating, and aligned with your company culture.
Frequently Asked Questions
Is an employee of the month program worth implementing?
Yes. A well structured program boosts engagement, increases motivation, and strengthens company culture.
What criteria should be used to determine the winner?
Criteria should be objective, measurable, and aligned with your company’s goals such as performance, teamwork, customer service, leadership, or innovation.
How should the Employee of the Month be announced?
Announcements can be made during all hands meetings, team calls, internal emails, or company wide channels. Pair the announcement with a meaningful reward for maximum impact.