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The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

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Employee of the Month Award

The 'Employee of the Month' is a term used to recognize employees who are perceived as having performed exceptional work over a month. The award can be given by a manager, supervisor, or human resources department and often includes a small gift such as a certificate or plaque.

The concept behind this phrase is that companies usually have a system where they reward their employees based on their performance. This may be in the form of monetary rewards or other forms of recognition, such as gifts or public recognition. The idea is to recognize employees for their efforts and encourage them to keep doing better.

What is employee of the month award?

The employee of the month award is an opportunity for businesses to acknowledge and reward their employees for all their hard work and dedication. An employee of the month award is a great way to recognize employees who have gone above and beyond in their job. These awards can be given out monthly, quarterly, or annually. It's up to the business!

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What are the benefits of the employee of the month award?

Here are some of the benefits of the Employee of the Month Award:

  • It encourages teamwork.
  • It motivates employees to be more productive and efficient at work.
  • It helps develop strong company culture and camaraderie among employees.
  • It encourages friendly competition among co-workers, which results in better performance.
  • It motivates other employees to try harder and improve their performance so that they can win the award too.
  • It helps create a positive company culture and improves morale among employees. It makes them feel appreciated and valued for their efforts.

When should the employee of the month award be used in the workplace?

The Employee of the Month award should be used in the workplace :

  • When an employee has done something remarkable in their job.
  • When an employee has gone above and beyond to help others out.
  • When an employee has made a change within your organization (big or small).
  • When an employee has demonstrated dedication to the company's goals and objectives.

Is employee of the month awards a good idea?

Yes, giving out awards to employees every month is a good idea because they serve as excellent motivators and increase productivity. It can be an excellent motivator that helps employees feel appreciated. It gives them an opportunity to celebrate their hard work and effort.

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What are some of the best employee of the month award ideas?

Here are some effective employee of the month award ideas:

  • Trophies: These can be engraved with your company logo or other designs.
  • Certificates: These are popular for employee recognition because they are simple and easy to send. You can even create them digitally and send them instantly via their email.
  • Digital gift cards: These are always appreciated by employees, especially if they are given out on special occasions like Christmas, work anniversaries, and birthdays!
  • Public praise: Another great way to show your appreciation for all that your employees do for you each day is by complimenting in front of everyone!
  • Free lunch or dinner: Offer free lunch or dinner at work once a month as part of your employee appreciation program. Employees will appreciate this small gesture because it shows that management cares about them and wants them to succeed.

Are employee of the month awards taxable?

The answer to this question depends on how the award is given and to whom. If your company gives an award to a single employee, then it's generally considered a gift, which isn't taxable. However, giving an award to multiple employees can be regarded as compensation and is subject to federal income tax withholding and payroll taxes.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

How to award employee of the month?

The best way to thank employees is by giving them a pat on the back and showing them how much they mean to your company. You don't have to throw an elaborate party with all-expense paid trips or big bonuses; there are many simple ways to show your employees how much they mean to you.

Here are some tips to award employee of the month:

  • Acknowledge the achievement in front of co-workers and managers.
  • Give an award that has meaning and significance to the employee, such as a digital gift card, a certificate, or dinner at their favorite restaurant.
  • Create a display board with photos and other recognition items from past recipients of awards. This will serve as inspiration for future winners!
  • Offer time off with pay or comp time for extra hours worked during busy times (like tax season).
  • Hold a celebration event. Have a party or lunch where you can present your employee of the month with their trophy and certificate and collect stories from them about why they deserve it.
  • Create a list of specific criteria for judging winners, such as attendance rate, sales figures, customer service scores and so on. Consider adding extra points if someone has won the award before.

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