Finding software can be overwhelming. Software Advice helps thousands of businesses choose the right employee recognition software to reward employee efforts, behavior and achievements.

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MotivosityFrontRunners 2021

Motivosity is a cloud-based employee recognition solution, which assists small to large organizations with performance tracking and benchmarking. Key features include peer-to-peer social recognition, feedback collection, monetary ... Read more

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Recent recommendations: 10 recommendations

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BizMerlin

BizMerlinHR is a cloud-based human resource management solution that helps mid to large enterprises manage the entire employee lifecycle, from onboarding to comprehensive employee records to performance management to team retentio... Read more

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Recent recommendations: 7 recommendations

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WebHR

WebHR is a cloud-based human resource management solution that helps organizations manage their employees' employment lifecycle, from the time they were hired to retirement. The solution merges functionalities provided by human re... Read more

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Recent recommendations: 5 recommendations

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WinningTemp

Winningtemp is a cloud-based software designed to help businesses leverage artificial intelligence (AI) technology and machine learning algorithms to measure employees' engagement and job satisfaction rates. Professionals can crea... Read more

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Recent recommendations: 5 recommendations

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QarrotFrontRunners 2021

Qarrot is a full-circle employee recognition software solution, ideal for small and mid-sized companies looking to improve team morale, strengthen workplace culture, drive higher performance, or to simply say "thank-you" to their ... Read more

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Recent recommendations: 4 recommendations

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energage

Energage is a cloud-based employee engagement platform that caters to businesses across various industry verticals. Features include performance and feedback management, employee and cultural alignment, surveys and more. The ... Read more

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Recent recommendations: 4 recommendations

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NectarFrontRunners 2021

Nectar is a people platform that bundles social recognition, rewards, employee discounts & swag management to create connection and appreciation across your organization. With Nectar, employees and managers can publicly recognize ... Read more

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Recent recommendations: 3 recommendations

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DaysToHappy

DaysToHappy is a people experience platform (PXP) designed for organizations of all sizes to engage, inspire, train, recognize, and motivate employees. Powered by next-gen mobile technology, human science, and positive psychology,... Read more

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Recent recommendations: 3 recommendations

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Inspire

Inspire Software is a cloud-based solution that helps small to large businesses manage employee performance through 360-degree feedback and recognition tools. It comes with a Goals Science module, which allows enterprises to creat... Read more

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Recent recommendations: 2 recommendations

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AwardcoFrontRunners 2021

Awardco is a cloud-based employee recognition solution designed to boost employee engagement and simplify the reward process with incentivized programs through Amazon Business. With Amazon integration, businesses can provide emplo... Read more

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Recent recommendations: 1 recommendations

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FondFrontRunners 2021

Fond is an employee recognition solution designed to help businesses acknowledge employees by creating various rewards and discount programs. It provides mobile applications for Android and iOS devices, which enable professionals ... Read more

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Recent recommendations: 1 recommendations

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Quantum Workplace

Quantum Workplace is a cloud-based human resources (HR) solution. The solution is designed for employee engagement. Key features include functionality for surveys, goals, recognition, feedback, ideas, alerts and analytics. Qu... Read more

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Recent recommendations: 1 recommendations

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BonuslyFrontRunners 2021

Bonusly is a cloud-based human resources (HR) solution for various industries such as accounting, consulting, biotechnology, healthcare, marketing and advertising. The solution offers native mobile applications for iOS and Android... Read more

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KudosFrontRunners 2021

Kudos is a cloud-based peer-to-peer employee recognition software for organizations with more than 100 employees. The platform gives organizations a high degree of customization around branding and the use of rewards. Other featur... Read more

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Guusto

Guusto is designed with the belief that people come first and that employee recognition leads to great culture. Guusto is simple and scalable, allowing you to schedule and send 1-1000 gifts at once. Allocate budgets to manag... Read more

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SpinifyFrontRunners 2021

Spinify is a cloud-based employee recognition platform that helps businesses of all sizes engage motivate and reward sales teams using gamification techniques. Designed for real estate, call center and recruitment organizations, t... Read more

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Tango Card

Tango Card is a cloud-based customer loyalty solution designed to help businesses enhance client and employee engagement using rewards, electronic gift cards and incentives. Professionals can create email templates, fund their acc... Read more

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Hi5FrontRunners 2021

Hi5 is an employee recognition solution that enables startups, businesses and non-profit organizations to improve staff's performance and acknowledgment on a centralized platform. Professionals can receive feedback from employees ... Read more

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Employment Hero

Employment Hero is a cloud-based human resource (HRM) management system available to businesses of all industries and sizes. The solution helps manage the entire employee lifecycle, with modules for recruiting, onboarding, payroll... Read more

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ConnecTeam

Connecteam Time Clock is a workforce management system that is suitable for companies from a range of industries including retail, food and beverage, transportation, construction, and healthcare. Companies can create and personali... Read more

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Buyers guide


Last Updated: April 19, 2021

According to an SHRM survey, the top employee management challenge of HR managers is employee retention/turnover. About 68 percent of them believe that an employee recognition program can reduce the employee turnover rate because employees stay in an organization where their work is appreciated or rewarded.

Rewards and recognition should be a key component of your HR strategy since they can improve employee engagement, performance and the organization's growth. However, you need to strategically design and deploy your employee recognition program with the help of technology in order to ensure that your managers and employees use it well.

The right software will make it easy for you to reward your employees' achievements, efforts and behaviors that align with your business goals and values. But understanding the myriad employee recognition tools and their features is necessary to getting the right solution for your business.

This Buyer's Guide will help you understand employee recognition software and its features and benefits. Armed with this knowledge, you'll be able to make an informed purchase of the right solution.

Here's what we'll cover:

What Is Employee Recognition Software?
Common Features of Employee Recognition Software
What Type of Buyer Are You?
Benefits of Employee Recognition Software
Market Trends to Understand

What Is Employee Recognition Software?

Employee recognition software helps HR managers and supervisors reward their employees' contributions in the form of awards, e-gifts, additional time-off etc. These could be based on exceptional performance or when they exemplify a business value, such as being a great team player.

The software allows HR managers to set the metrics and track employee progress. It's important to know that a typical employee recognition solution should have the following functionality:

  • Provide survey tools to incorporate peer feedback.
  • Include analytics functionality to identify top talent and award recipients based on different metrics.
  • Integrate gamification elements—such as leaderboards and badges—to ensure user engagement.
  • Offer templates to create employee recognition programs and timelines for rewards distribution.

Rewards catalogue management in Bonusly

Rewards catalog management in Bonusly (Source)

Common Features of Employee Recognition Software

This section looks at some of the common features that you can expect to find in most employee recognition solutions. Here are the details of these features:

Peer-to-peer recognition Allow employees/managers to give feedback for their peers/reportees; the feedback is stored in a centralized database.
Activity tracking (goal management) Create and assign employee goals for a specific time period (month, week etc.) and track the status of goals in real time.
Built-in survey tools Create surveys and questionnaires to gauge workforce performance; send these to employees for their feedback.
Rewards catalog management Search a catalog of rewards such as vouchers for travel, merchandise, e-gifts or non-monetary rewards (e.g., praise cards).
Nominations management Allow employees or managers to nominate candidates who demonstrate business values and behaviors such as collaboration, integrity and innovation.
Analytics and reporting Create customized analytics reports (charts or graphs) to track and analyze employee (or whole team) performance. Compare this with team averages to identify underperforming employees.
Gamification Increase peer engagement in recognition programs by integrating gamification elements such as leaderboards, badges and contests.
Social recognition Allow employees to post/share their recognition scores on social media platforms (Facebook, LinkedIn etc.)

What Type of Buyer Are You?

Different organizations use different methods to recognize their employees such as offering micro-bonuses, verbal praise or certificates of appreciation. With employee recognition software, business can efficiently—and fairly—find out the top performers or outstanding employees who should be rewarded.

However, before purchasing the software, you should assess your buyer type. Most buyers fall into one of the following categories:

Best-of-breed software buyers: These buyers may already have HR software in place, but need a niche solution for a specific functionality. They want simple-to-use tools that will automate the process of employee recognition at varying levels (i.e., peer-to-peer or peer-to-manager).

Such buyers can opt for software-as-a-service (SaaS) or cloud-based solutions, which usually have monthly service fees. This way you won't have to purchase proprietary software.

Integrated suite buyers: These buyers require a single software suite to implement a range of applications. A suite saves integration costs and stores all data in a single database. If you are in this buyer's category, choose a solution that offers employee recognition as a core feature.

And if you want to integrate third-party apps with your existing software suite, ensure that you have the in-house expertise to integrate the apps. If you don't, you'll need external IT help for the integration and ongoing maintenance.

Small businesses are most likely to buy best-of-breed systems as they perform specialized functions in a niche category (in this case, employee recognition). On the other hand, midsize and large enterprises are more likely to opt for full suites to handle multiple business requirements.

Benefits of Employee Recognition Software

Sixty-six percentof HR managers feel that a recognition program at their workplace has boosted their reputation as an employer. And 90 percent of employees feel that such programs have a positive impact on employee engagement.

In this section, we've called out the most important benefits of employee recognition software. The key benefits are:

Increased employee productivity: Seventy-eight percent of employees would work harder if their efforts are better recognized at work. When employees are recognized, they are motivated to be efficient and proactive, resulting in increased productivity.

Higher employee loyalty and customer satisfaction: When employees are motivated, they are more likely to promote and sell your brand in a positive way. This leads to increases in customer satisfaction and your net revenue.

Market Trends to Understand

Across the world, employee recognition programs are gaining popularity as employers realize the importance of keeping their employees engaged. Here are some of the important market trends you should be aware of:

Employee recognition increases retention: Being a large part of the workforce, millennials expect regular attention and recognition from their employers. Without both, they end up quitting pretty quickly. That's why businesses with employee recognition programs tend to have a 23.4 percent lower turnover rate than businesses that don't.

Increase in employee recognition through mobile: With the increasing adoption of mobile devices among workers, apps are playing a big role in employee recognition. These apps are often free or low-cost, offering you a cost-effective, innovative way to recognize your peers, irrespective of time and location. Tap My Back, LifeWorks and gloodoo are some of the popular mobile apps in this category.

FrontRunners

Your Guide to Top Employee Recognition Software, January 2021

Software Advice uses reviews from real software users to highlight the top-rated Employee Recognition Software products in North America.

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“Usability” includes user ratings for Functionality and Ease of Use.“Customer Satisfaction” includes user ratings for Customer Support, Likelihood to Recommend and Value for Money.Reviews analysis period: The reviews analysis period spans two years and ends on the 15th of the month prior to publication.