Are you searching for methods to involve your team and enhance overall performance? An employee of the year award might be just the ticket!
Any form of employee appreciation can elevate spirits, enhance workplace culture, and stimulate motivation. Yet, annual awards have a distinguished status. Because you distribute them once annually, they carry more significance.
Within this article, we’ll discuss what an employee of the year accolade entails, the standards your team needs to fulfill to be eligible, the recommendations and pitfalls of this type of acknowledgment, and much more. By the conclusion, you’ll grasp how to commend your company’s top achievers in a fair, enjoyable, and effective manner.
What is an Employee of the Year Award?
Let’s begin with the essentials.
An employee of the year recognition is an honor that businesses bestow upon their leading employee annually. Its objective? To spotlight outstanding performance, leadership, and/or the accomplishment of organizational goals.
An employee of the year distinction should not be confused with a customer service or rising star award.
A customer service prize is given to the top representative in customer service, whereas a rising star award targets newer employees who display promising potential for future accomplishments.
Although all these honors aim to acknowledge team members, the employee of the year recognition encapsulates overall success and commitment within the firm.

What’s the criteria for an Employee of the Year Award?
The most appealing aspect of employee of the year recognitions is that you can decide the criteria for your organization. That being said, there are specific attributes you should consider in your award recipient:
An Excellent Attitude
The individual chosen for your company’s employee of the year honor should possess a commendable attitude.
This might seem overly simplistic, but it is not. A positive demeanor cultivates cooperation, lifts spirits, and enhances employee involvement. These are vital in forming a flourishing company environment.
Moreover, positivity is infectious. When a staff member maintains an optimistic perspective, they inspire peers, fostering better teamwork and productivity. This ripple effect nurtures a supportive atmosphere desirable for all.
Fundamentally, a positive attitude is one of the foundational elements of exceptional performance.
A Remarkable Work Ethic
The individual who receives your employee of the year accolade should also be hardworking.
An impressive work ethic can have a significant influence on business achievement. Employees driven and committed not only reach their objectives, but motivate others to do likewise.
Acknowledging staff for their hard work cultivates a sense of responsibility as well. When your team witnesses their efforts being rewarded, they tend to uphold high standards. Consequently, a robust work ethic usually leads to enhanced productivity, work quality, and problem-solving capabilities.
Exceptional Performance
Lastly, the recipient of your employee of the year honor ought to demonstrate extraordinary performance throughout the year. What does this entail in a practical setting?
Sales representatives should sustain high closing ratios and drive significant revenue. Marketers ought to work on impactful campaigns that boost your company’s standing and generate high-quality leads. Service representatives should receive praise from the customers they engage with.
Just as crucial, your employee of the year must achieve these whilst upholding organizational values. Avoid rewarding individuals who employ unethical tactics to attain their professional achievements. Otherwise, it will set a precedent for negative conduct, potentially harming your company.

Do’s When Awarding Employee of the Year
Thinking of initiating an annual awards initiative at your workplace? This type of employee acknowledgment can significantly enhance team morale, if executed well. Here’s how:
1. Do: Consider Every Employee
Initially, ensure each individual within your organization has a chance to receive the employee of the year accolade.
Restricting the award to executive staff or leadership will generate displeasure among lower-level employees. Why? Because it will appear as favoritism, diminishing morale and involvement.
Conversely, granting everyone a shot at annual recognition fosters a sense of inclusion and drive. It also promotes healthy competition and cultivates an environment where individuals strive for enhancement, aware that their endeavors will be appreciated, no matter their position.
2. Do: Communicate Selection Criteria
Subsequently, make sure your team knows how to earn the employee acknowledgment award. Which characteristics, actions, and/or principles should they exhibit?
For instance, your company might value teamwork, creativity, and diligence. Or efficiency, analytical thinking, and professionalism. The choice is yours. Whatever you decide, be transparent. That way, your workforce understands what is expected of them and can embody those values in their day-to-day tasks.
Having clear selection criteria has an additional advantage: clarity. When employees comprehend why particular individuals are nominated, they become more involved in the process because they can assess their own conduct against award requirements.
3. Do: Incorporate Employee Votes
Employee honors elevate engagement levels. Leverage this by permitting your staff to nominate colleagues for the accolade. Then, go further and let them vote for the winner. This can render the entire awards procedure more transparent and engaging.
Just bear in mind, employee votes should only be one element in the decision. You and the management team should also have input on who claims the award. The victor will represent the organization for the following year and should not solely be the most popular or prominent nominee.
Striking a balance between leadership and staff opinions will help determine the winner.
4. Do: Establish a Formal Procedure
The employee of the year award at your company should be esteemed. Ensure it is by establishing a formalized procedure surrounding the recognition. This increases its significance.
We’ve previously discussed various actions you might take in this respect. You could set up …
establish clear selection standards, permit staff to recommend their colleagues, and additional aspects.
Moreover, consider more actions. For instance, deliver a formal letter to announce the award winner. Alternatively, organize a company-wide gathering to celebrate the top contenders and declare the real winner. Additionally, maintain thorough documentation to archive annual honorees.
Furthermore, present a reward, like a plaque or gift voucher, to emphasize the significance of this accolade, making it more impactful. Let’s dive into that topic…
5. Do: Enhance the Award’s Significance
Your team members should aspire to earn your employee appreciation awards. If they are indifferent about the Employee of the Year accolade, they won’t strive to attain it. This lack of drive might adversely affect organizational objectives. Thankfully, there are methods to make it more significant:
- Provide Company-Wide Acknowledgment: Public recognition enhances morale and instills pride in the work environment. Reveal the Employee of the Year to the entire organization.
- Offer Advancement Possibilities: Employees named as Employees of the Year are exceptional achievers. Therefore, they are ideal candidates for career advancement prospects. Remind your staff about this fact.
- Bestow Winners With Tempting Rewards: Concrete incentives, such as gift vouchers or additional leave, enhance the sweetness of recognition. Allow the broader team to partake in the festivities with a collective recognition tool like Inkspired Gifts.

Pitfalls to Avoid While Crafting an Employee of the Year Award
The intent of the Employee of the Year award is to commend your personnel for their diligent work and foster engagement. However, an improper or misguided implementation could achieve the contrary. To assist you in reaching this aim, sidestep these five pitfalls when establishing an employee of the year accolade:
6. Don’t: Postpone the Recognition Process
The last thing needed is to procrastinate during the employee of the year award process. By “procrastinate,” we mean delaying the selection of a winner beyond what is necessary.
Develop a schedule, share it with the broader team, and adhere to it. Postponing the recognition process lessens the importance of the award. It unintentionally signifies a lack of concern for the award. And if you do not prioritize it, why should your team? They have numerous other areas to concentrate on.
Moreover, your employees might be anxious awaiting the results. Why wouldn’t they be? Achieving Employee of the Year can bring remarkable career advantages. Compelling your team to wait for an extended timeframe is poor etiquette. Instead, provide recognition promptly.
7. Don’t: Keep the Award Confidential
Ensure everyone within your company is aware of who claims the Employee of the Year award. Announce it company-wide and publicize the announcement somewhere visible. This will benefit your company in two distinct manners:
- Firstly, it will afford your winner the acknowledgment they deserve. This individual likely worked immensely hard to secure the title of Employee of the Year. They should relish this accomplishment. If deprived of this chance, they might lose motivation.
- Secondly, a public announcement will establish a visible benchmark for other employees in your company. They will observe what exemplary performance entails. They can then emulate the winner’s conduct to enhance their productivity.
Simply put, public acknowledgment encourages a culture of excellence while enhancing engagement and output. Don’t conceal the award recipient!
8. Don’t: Consistently Award the Same Individual
Consider this scenario: Stephanie is a remarkable employee. She consistently maintains a positive attitude, exhibits diligence, and delivers outstanding outcomes. She is an obvious choice for your initial Employee of the Year award.
The second year arrives, and Stephanie continues to excel. Hence, she is bestowed with the title once more. The third and fourth years follow the same trend. Can you identify the issue here?
Constantly rewarding the same individual—or even a select group—can be harmful to workplace morale. It promotes a notion of partiality, causing other staff members to feel undervalued and ignored. The less-emphasized employees may begin to lose motivation and ponder, “Why bother? My hard work will likely remain unnoticed…”
To counter this, recognize a diverse array of achievers with your Employee of the Year title. This straightforward gesture will motivate everyone within your company to excel.
9. Don’t: Undervalue Other Staff
Remember, only a solitary employee can secure the “Employee of the Year” title each year.
That doesn’t imply the remainder of your team underperformed. Avoid viewing staff members who don’t win as inferior.
Every employee contributes uniquely to your company’s success and merits recognition for their contributions. (More details on daily acknowledgment will be covered in the subsequent section.)
Also crucial to note, the intention behind annual recognition awards is to incentivize and galvanize your team. Should the process make certain members feel underestimated, it will undermine that objective.
10. Don’t: Overlook Regular Recognition
While “Employee of the Year” titles possess substantial significance, day-to-day recognition holds greater importance.
Why? Consistent recognition nurtures a positive work atmosphere and boosts morale. It also motivates employees to sustain lofty performance levels. And as it fosters a sense of appreciation among employees, it can considerably impact your company’s turnover rate.
If your company has not yet considered employee acknowledgment programs, now is the opportunity to commence. Celebrate minor achievements and regularly appreciate staff. This approach will foster a culture of appreciation across your organization and lead to prolonged success.
Inventive Titles for Your Employee of the Year Award
When it comes to differentiating your company’s employee of the year accolade, you aren’t confined to the predictable “Employee of the Year.” Rather, consider innovative names that ignite curiosity and enthusiasm. Potential options include:
- Apex Achiever Award
- Excellence in Action Award
- Shining Beacon Award
- Star Performer Award
- Team 365 Award
- Top Trailblazer Award
When devising a title for your organization, take into account your company’s values or products. Attempt to incorporate the name into something employees are already acquainted with.
Bear in mind, the award acknowledges employees who exceed expectations. An imaginative title will not only emphasize the achievement but also inspire others to aim for excellence.

3 Advantages of the Employeethe Year Distinctions
We’re not going to sugarcoat it, developing a yearly staff appreciation strategy requires effort.
You’ll have to establish criteria for the accolade, promote the contest among your staff, gather employee votes, buy rewards, organize a recognition ceremony… The list continues.
Thankfully, all this effort will be worthwhile when your enterprise achieves:
Increased Engagement
Annual recognition distinctions for employees enhance engagement levels.
When your team knows they have a concrete goal to aim for, they’ll be more eager to channel their skills and energy into their tasks. In simpler terms, their drive will escalate.
This is crucial because organizations with high employee involvement see 21% higher profitability. Moreover, motivated employees often demonstrate more initiative and creativity. These qualities are key if you aspire for your company to reach its objectives.
Enhanced Performance
Annual employee recognition distinctions also result in better performance.
It stands to reason. Before you present the yearly accolade to your team, you’ll identify the characteristics, actions, and principles the awardee must display. This set of criteria will clarify for your employees what you expect from them.
The aspiration to obtain the accolade might also inspire your team to exert more effort. After all, the more they exert themselves, the higher the chances they’ll receive the award and enjoy the associated advantages (assuming you offer appealing ones!).
Superior Staff Retention
Finally, annual employee recognition distinctions can bolster staff retention.
When employees are absorbed in their duties, motivated to excel, and appreciated for their contributions, they’re less inclined to look for external opportunities. This results in lower turnover rates, which are vital for maintaining team continuity and cutting down payroll expenses.
Research indicates that replacing a staff member can cost as much as 213% of their annual earnings. Ultimately, high retention rates save organizations money and help preserve a robust team.

Honor Employees Throughout the Year With Inkspired Gifts
Winning the employee of the year distinction will heighten staff engagement, elevate their performance, and improve retention. But you must approach the recognition process correctly. After reading this piece, you’re aware of what to do (and avoid) in this context.
Don’t forget, your company also requires a continuous recognition plan. Annual honors, while significant, aren’t sufficient to thoroughly transform your organization.
When it comes to employee recognition, Inkspired Gifts is a safe bet. Our platform simplifies the process of publicly acknowledging employees. Equally vital, your team can acknowledge one another too, which will further boost their engagement. Success!
Craft an Employee of the Year Inkspired Gifts
Commemorate the recipient of your company’s Employee of the Year honor with Inkspired Gifts.