The major methods of employee recognition are monetary or nonmonetary awards. Monetary awards are usually those that are paid by way of cash, check, money order, and direct deposit or any item that can be readily converted to cash, such as savings bonds or refundable gift certificates. These kinds of awards work well when the amounts being given is sufficient enough to spark continued high performance among workers. If they are too low worker will not perform at such a level to be recognized for it. Workers may not consider the award as something to aspire towards attaining. Finding the right balance in terms of the amount and what the reward is for may be challenging, but if it is adequate it will motivate employees to produce good work on a more consistent basis.

Non monetary awards are those that have no cash attached to them and include things like non-refundable gift certificates, trips, plaques, pens and certificates. They help in building feelings of certainty of action and a level of satisfaction in employees. For non-monetary awards to be meaningful they must be lasting in nature and easily seen and recognizable by others. Non monetary recognition is a key element in keeping good workers and for getting great performance.

Employee Awards such as spa gift certificates, increased vacation leave, gym membership and trips to an exotic island are a simple way to encourage those high performing workers when the economy is down and jobs are scarce. Another non monetary award is personal growth opportunities that some companies offer, where employees are made a part of some special projects team or a decision making group. It is extremely motivating for employees to be chosen for a task team to work on and achieve a company project, as it is a great way for employees to acquire new skills, competences and the experience. It also shows the level of trust management has in their capabilities, and injects some range in the employees work possibilities.