The Best Employee Recognition Software of 2021

What Is Employee Recognition Software?

Employee recognition software allows businesses to recognize and reward employees for meeting goals, performing a job to the best of their ability, or standing out above other workers. This program is typically a browser-based application, so managers and employees with an internet connection can give reviews on an individual’s work habits. All information is stored in the cloud, so it can be shared among multiple locations, which is ideal for chains. Based on these reviews, managers, business owners, and team leaders can analyze this information and give out monetary rewards, gifts, and future promotions. The software defines what these rewards are and turns goals and deadlines into a fun participation game.

Employee recognition software typically works in one of two ways: a continuous social media feed that lets employees see who’s recognized and for what or individual profiles where users can leave comments. It’s often other employees who see their peers hard at work, and this software gives them the ability to make comments on a daily basis. For most of these programs, employees earn electronic cash or points, which can be exchanged for actual gifts, gift cards, or company swag.

Benefits of Employee Recognition Software

Employees who feel appreciated tend to feel more positive about their jobs, happier at work, are more loyal, and are likely to work harder. Employee recognition software can help create a positive work environment where staff feels welcomed, so they look forward to coming to work. Top talent is drawn to companies with positive work cultures. They also tend to stay longer and attract others of the same caliber. This helps build a positive company culture and one where employees feel engaged. This can translate into a lower turnover rate, which reduces training expenses. Engaged employees also put forth an extra effort because they tend to be proud of where they work. Most companies have to scope out potential employees. Those with a positive work culture have candidates who reach out for employment, which helps make recruitment easier.

Employees who feel appreciated by their peers work better in team environments. Work collaborations generally yield better results so companies can reach goals much faster. Instead of competing with one another for attention, employees who feel recognized and appreciated tend to have greater mutual respect and are more likely to work toward the greater good of the organization.

Must-Have Features for Employee Recognition Software

Companies that choose employee recognition software often look for specific features, such as programs that focus on morale. We evaluated these features and considered some of the most popular ones.

• Recognition tracking: Key performance indicators are used to gauge how effective an employee is to the organization and help identify areas that need improvement. The software should keep track of how often employees are recognized for meeting these performance goals and when they’re being rewarded.
• Reward points: Look for recognition software that keeps a rolling total on the number of recognition points individuals receive so rewards aren’t overlooked.
• Peer-to-peer recognition: This allows coworkers to comment on one another’s performance instead of relying solely on what the team leader views. This also makes it easier for all workers to comment on the praise and upvote the behavior.
• Manager-to-peer recognition: Management recognition is helpful for yearly reviews. This option also makes it easier for managers to see whom to choose for future projects and upcoming promotions.
• Integrations for HR systems: Choose software programs that integrate with collaboration tools your company already uses to help make celebrating recognition the focus of employee chats.

The Cost of Employee Recognition Software

The cost of employee recognition software varies depending on the number of users and types of options needed for your business. Most software companies charge by the month, with prices ranging from $1 to $9 per person.

These monthly plans are ideal for small companies on limited budgets. Larger businesses may opt to pay annually, which can provide savings on the monthly rates.

Regardless of the cost, employee recognition software plans charge additional fees for rewards.

There are also free plans available, but they don’t include features such as reporting and integrations. However, they may be a good choice for companies with only a few employees.

The number of advanced features an employee recognition software program offers can also affect its cost. Basic plans let you create personality profiles and offer weekly highlights and allow you to make announcements of recognition. More advanced features include awards and badges, the ability to create bonus programs, and employee turnover tracking.