All What Is Employee Recognition Software and How To Choose the Best Solution
All Recognition and Rewards

What Is Employee Recognition Software and How To Choose the Best Solution

Author: Ravijojla Novakovic Last updated: March 5, 2024 Reading time: 9 minutes

With the adoption of innovative employee recognition software, businesses can now effectively acknowledge and reward their employees’ efforts and achievements. 

Finding the right employee recognition software seems like a simple task. There are plenty of options on the market.

However, as many HR professionals know, finding the one that works for you is crucial – for your goals, company, and employees. 

This comprehensive guide aims to help you navigate the vast landscape of options and choose the best employee recognition software for your organization.

We’ll dive into what employee recognition software is, its importance, and how to select the ideal solution that aligns with your company’s culture and goals. 

Stay tuned as we unravel the intricacies of choosing the perfect software to boost morale, increase productivity, and foster a positive work environment.

Before we start, find out why employee recognition is crucial for a company’s success.

What Is Employee Recognition Software?

At its core, employee recognition software is a sophisticated solution that empowers organizations to systematically acknowledge and reward their employees’ achievements and stellar performance.

This software, often called an employee recognition platform, is meticulously designed to facilitate the exchange of appreciation messages and/or monetary rewards for employees’ accomplishments.

The complexity of the recognition software can vary, offering additional features such as a social wall, the capability to run diverse recognition programs targeting different audiences, and more.

In the subsequent section, we will explore the key features to consider when selecting a recognition software that promises the highest Return on Investment (ROI).

Key Features To Consider When Choosing Employee Recognition Software

It’s important to keep in mind that each employee recognition software provider offers unique features. 

When you’re shopping for recognition software, it’s crucial to focus on what’s most important – the capabilities that will encourage your employees to participate and provide a good return on investment. Don’t get bogged down in the details.

Here are some of the most important employee recognition software options you should keep in mind. 

Ease of access and use 

An efficient employee recognition software should be accessible to all employees and easy to use. It is essential to choose an intuitive solution that can be accessed through mobile phones.

Millennials are becoming a dominant age group in the world workforce, and technology is embedded in their lives. Therefore, ensure your employee recognition software is user-friendly to increase the participation rate in your employee recognition programs and initiatives. 


It is important to have the possibility of configuring various aspects of the employee recognition software at hand.

On one hand, your new solution must fit in with your existing system and brand.

On the other hand, you know your employees best – so you need to have the option to increase the participation rate of your employee recognition programs by customizing them. 


Employee recognition software uses employee data, which needs to be protected. Look for solutions with maximum data security and compliance protocols like GDPR if you need them. Ask your colleagues from IT and legal departments to assist you in this area. 


Your employees are accustomed to certain workplace apps, so you should ensure your employee recognition software can integrate with those.

Look to integrate with your communication apps like Slack or MS Teams. Moreover, see if the solution you are considering integrates with LinkedIn, so your employees can share their recognition certificates publicly. 

Find out what other integrations of employee recognition software you could use to increase its popularity and increase your ROI. 

Flexibility of recognition programs 

This is another very important feature of employee recognition software to look for.

You will want to create different employee recognition programs based on your business goals, core company values, locations of your subsidiaries, and others.

Moreover, consider functionalities such as peer-to-peer and monetary and non-monetary recognition. 

Get best practices and guidelines on implementing and maintaining employee recognition programs in our Employee Recognition Playbook

Social recognition 

A social recognition feature in the form of a social wall ensures that your employees are aware of recognition taking place.

It is directly related to company culture and is especially important if some of your employees work remotely. 

Integration with HRIS

Apart from the regular integrations, you should look for employee recognition software that integrates smoothly with your existing HRIS.

This is crucial so all the employee data you need is accurate – your employees’ anniversaries, birthdays, learning outcomes, and more. 

Rewards features 

If you plan to use your employee recognition solution to reward employees, you should carefully investigate reward features.

First of all, 88% of Millennials say that prepaid cards are their favorite type of monetary reward. Therefore, make sure to include this option for redeeming rewards.

Second, you can also consider an employee gifts catalog and think of what it should include.

Finally, check if your future employee recognition app will have a built-in purchasing power index if your company operates in more countries – to ensure fairness.

Also, see if there are any markups or transitional costs on redemption of merchandise. 

Strategic support 

Strategic support is not an exact feature you can pinpoint.

Still, it is essential to find out how the employee recognition software you are considering has changed from its initial version and how it grows according to industry trends.

In a sense, you are looking for support in best practices and updates of certain features, as well as the development of new ones. 

Moreover, strategic support will help you tie your recognition programs and criteria to your business goals on both a daily and long-term basis, which is one of the prerequisites for running a successful employee recognition program. 

The Importance of Choosing the Right Employee Recognition Software

Employee recognition is a cornerstone of the Total Rewards Strategy and should be treated as a long-term initiative.

Ensuring your employees feel valued requires a structured and sustained effort that evolves over time.

In this context, it’s crucial to select an Employee Recognition Software that can adapt to your company’s changing needs and growth.

Here’s why choosing the right employee recognition software is so important:

Improving employee engagement 

stats that show how employee recognition boosts employee morale

Employee engagement is a very popular HR metric.

It indicates how engaged or disengaged employees are in their work and signals overall employee satisfaction, productivity, and retention. Therefore, it is important to keep it optimal throughout the employee journey. 

58% of employees say that their leaders could engage them better by recognizing them.

Leaders who are aware of the importance of recognition in the workplace often send employee appreciation letters or inspiring employee appreciation quotes their colleague’s way.

However, this is not easy with an unsuitable employee recognition platform or the one rarely used among your employees.

If the employee recognition software is not user-friendly or is just not that popular, recognition will either take place in person – and you or others will not be aware of it – or it will not happen at all. 

Increasing employee retention 

Many companies are struggling with retaining highly skilled employees in their rows.

There are many opportunities for sought-after professionals on the job market, and they are leaving their employers not only for better pay but for lack of recognition—namely, 76% of employees who do not feel valued look for other job opportunities. 

Employee turnover varies across industries, but it always represents a significant cost.

Since employee recognition software helps employers appreciate their employees’ contributions, it pays off to invest in the solution that will help them prevent attrition. 

Enhancing employee experience  

Employee experience (EX) is one of HR’s leaders top priorities for 2021, with 28% seeing it as an important thing to focus on.

EX includes all aspects of the workplace and accounts for all experiences employees have with a certain employer. 

As such, employee recognition adds to the cumulative employee experience index.

However, as having access to and using up-to-date technology is increasingly important to Millennials and Gen Z, having the right employee recognition solution becomes more essential than ever. 

Boosting employee productivity 

recognition boosts employee productivity stats

There are a lot of influences on employee productivity: disturbances, organizational capability, stress, etc. However, one is especially important: employee motivation.

Luckily, employees say that being appreciated motivates them at their job. 

Employee productivity worldwide has been challenged by the pandemic, but the research did not find any significant drops in productivity since the remote work policy was implemented.

This is because many companies have already switched to online platforms in many employee experience areas like communication, employee feedback, and recognition.  

Supporting employee development 

Employee development is important for any company’s growth. Some would say it is more important than ever since building critical skills and competencies is HR leaders’ top priority for 2021.  

Therefore, it is important not only to plan and offer learning and development opportunities at your company but also to encourage and support it.

The right employee recognition software can help you tie your recognition program to learning and development outcomes.  

Creating a positive company culture 

Creating and maintaining a vibrant, positive, and productive company culture is difficult. This task is even more difficult if the company at hand is a large enterprise.

In such an environment, one must have smart solutions to improve the work atmosphere at scale for all employees across departments and locations.

Watch how our Employee Recognition Platform JobPts enables employers to create a positive employee experience and productive company culture.


Choosing the right employee recognition software is a crucial decision that can significantly impact your organization’s culture, employee engagement, and overall productivity.

This software facilitates systematic recognition and rewards and fosters a positive work environment. Remember to consider the key features that align with your company’s needs and values. 

With the right software, you can effectively acknowledge your employees’ efforts, boost morale, and ultimately drive your organization toward success. 

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