Employee of the Month

A service business wants to thank people who solve difficult customer problems, so it creates a monthly award but quickly finds that managers nominate the most visible employees. Clear criteria and a fair review process are needed.

The purpose should be stated, such as recognising customer care, collaboration, safety or improvement, because a prize without a defined behaviour turns into a popularity contest. SHRM's recognition-program guidance covers design and management of employee recognition, and it suggests a broader program can use multiple forms of recognition rather than relying on one monthly winner.

SHRM also notes that not everyone favours Employee of the Month programs, since a single award can leave strong contributors feeling overlooked, especially when work is hard to compare. Offer other recognition routes, such as timely manager thanks, peer appreciation and team milestones, so one winner does not consume the entire recognition budget.

Set eligibility deliberately by including roles, locations, shifts and part-time status, so a person who rarely meets senior leaders still has a fair chance if their work qualifies. Publish criteria before nominations, using observable contributions rather than adjectives such as positive attitude without examples, and explain the period and evidence required.

Choose nominators with care, because managers, peers and customers see different aspects of work, and combining sources may help but the quantity of nominations should not automatically beat quality. Review nominations consistently, with a small panel comparing evidence against stated criteria, recording conflicts of interest and avoiding one manager selecting their own favourite without challenge.

Do not assume one winner every month, since if no nomination meets the standard, forcing a choice may dilute the award, and a team achievement may deserve group recognition. Consider the reward as well, because a certificate, paid time, gift or cash payment can carry different cost and tax effects, so check payroll rules before promising a prize.

Ask whether public praise is welcome, since some workers prefer a private thank-you and consent and cultural context matter, particularly if a photo or personal story will be shared. Use specific wording that says what the person did and why it mattered, because generic praise such as always amazing is less useful and harder to verify.

An illustrative nomination rate is employees nominated at least once divided by eligible employees in a period, so if 15 of 60 are nominated that is 25%, though it does not prove the selection was fair. Watch visibility bias, because frontline workers on busy shifts may be easier to notice than quiet colleagues who prevent errors behind the scenes, and managers should be trained to spot useful contributions since a dramatic rescue can attract attention while consistent prevention may create less visible value.

Avoid rewarding unhealthy overwork, keep recognition separate from formal appraisal, review patterns over time by role and shift, keep administration simple, invite feedback and explain unsuccessful nominations carefully without public ranking of employees. For owners, Employee of the Month is a visible thank-you that works better as one fair, specific part of recognition than as the only way excellent work gets noticed, and the scheme should be reviewed regularly because recognition is supposed to support a healthy workplace, not create a scoreboard for its own sake.