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High-performing employees are the backbone of business success. They contribute up to four times more productivity than the average worker and drive 26% of total output. Despite their impact, many companies struggle to reward them meaningfully and consistently.
Research shows that companies with strong recognition programs experience 31% lower turnover, and employees who feel appreciated are 3.7 times more likely to feel engaged at work and half as likely to experience burnout. Organisations typically allocate 1–2% of payroll to recognition programs, with top companies investing up to 4% to ensure their high performers feel valued. These investments go beyond monetary rewards; they build workplace culture, reinforce values, and create a sense of belonging.
Also Read: How Organizations Can Retain Their Best Talent?
As per The Recognition Effect Report, when recognition is lacking and employees don’t receive all four signals of recognition – appreciation, acceptance, validation, and accomplishment – employee motivation at workplace drops from 96% to 60%. Great Place To Work India research shows that at Best Workplaces, 84% of employees believe that they have the chance to receive special recognition at work.
How Can Leaders Ensure Fairness and Transparency in Recognizing High-Performing Employees?
First, leaders need to make it clear what high performance looks like, and employees need to know what it means to be a high performer, when they’ve reached that level, and what opportunities are available for them. To boost transparency and fairness, Best Workplaces use dashboards and digital recognition systems to monitor goals, track progress, and clearly communicate employee rewards. So, who are these top performers? They are self-directed, flexible, and always go above and beyond what is expected of them. They fix problems, lead projects, and make the team work better. By making clear what is expected of them and tying performance to meaningful rewards, leaders give employees the power to work hard to do their best.
This article explores proven methods for rewarding top performers, providing business executives and HR leaders practical strategies. These procedures tackle one of the most important issues facing today’s leaders: How do we recognise, and retain the best employees in a competitive, fast-changing world?
1. Monetary and Compensation-Based Rewards
High-performing employees play a crucial role in business success and deserve recognition that reflects their contributions. Best Workplaces use a layered approach to compensation, blending monetary rewards with long-term value creation.
Key practices include:
- Performance Bonuses: Regular cash incentives linked to individual, team, or company achievements that support a culture of merit.
- Profit-Sharing Models: High performers receive a portion of company profits, which promotes a sense of ownership and connection to business outcomes.
- Equity-Linked Long-Term Incentives: High-performing leaders are rewarded through structured plans like Long-Term Incentive Plans (LTIPs) and Phantom Stock Plans. These plans link to key performance metrics and usually vest over multiple years, encouraging a long-term commitment.
- Milestone-Based Incentives & Performance Bonuses: Financial rewards triggered by specific achievements, such as successful project delivery or innovation. This makes recognition timely and relevant.
An employee from a BFSI company recognised in Top 100 India’s Best Companies To Work For 2025 shared, “My hard work truly pays off at my organisation. One of the best things about working here is the incentive structure, which allows me to continuously advance in my career and receive pay based on my performance.”
Also Read: Employee Engagement Goals to Strengthen Retention and Motivation in 2026
By pairing short-term and long-term financial incentives with transparent tracking, organisations build a strong reward system that fosters excellence, accountability, and loyalty among high performers.
2. Workplace Privileges and Special Benefits
According to Great Place To Work, organisations that offer personalised support, such as coaching, flexible work arrangements, and lifestyle benefits, consistently see improvements in employee retention, productivity, and employee engagement. When employees feel their efforts are acknowledged through meaningful lifestyle benefits, they are more likely to remain engaged and committed to the organisation.
High-performing employees can be rewarded with special benefits in the following ways:
- Family wellness packages or travel vouchers that let them celebrate their accomplishments with loved ones.
- VIP Days, where top performers receive public recognition, invitations to senior leadership, or special experiences like executive lunches.
- Success story spotlights: An organisation can use newsletters, intranet features, or recognition posters to transform its accomplishments into stories about employee motivation for its entire workforce.
An employee from a Best Workplace shares, “Reaching my goals opens exciting opportunities like domestic and international tours in addition to financial rewards. These experiences really challenge me to think beyond my daily tasks and get me ready for more significant roles in the future.”
Workplace privileges may also include priority access to premium facilities, reserved parking, or early access to new initiatives and tools. In certain cases, consistent goal achievement activates customised schedules, additional time off, or the autonomy to choose preferred work arrangements, such as selecting their own remote vs. in-office days. These practices reflect a shift from one-size-fits-all employee rewards to personalised, performance-based experiences that empower employees, promote well-being, and foster long-term engagement.
3. Fun and Workplace Culture Boosters
Rather than relying solely on standardised employee rewards, some Best Workplaces integrate other incentives with emotional and symbolic gestures to create memorable experiences for the high-performing employees. These include:
- Wall of Fame installations that publicly celebrate high performers and their achievements.
- Legacy Awards that honour long-term impact and contributions, often presented in ceremonial formats.
- Custom Trophies or Keepsakes that serve as lasting symbols of appreciation.
- Gamified Recognition Platforms featuring leaderboards, badges, and point systems that add a layer of fun and healthy competition.
- Other Recognition Events, where the high-performers are personally awarded by the CXOs, often complemented with storytelling, personalised gifts, or spotlight moments.
To further enhance the emotional touch, certain Best Workplaces send personalised letters to an employee’s family or invite them for cake-cutting ceremonies, acknowledging their achievements and expressing gratitude for the support system behind their success.
4. Career Elevators and Growth Opportunities
Exceptional performance should be rewarded exceptionally. Best Workplaces don’t just reward their employees monetarily; they go even further by giving high-performing employees development opportunities that are essential for their individual growth and help the company reach its goals. Some of these ways are:
- Access to special leadership development programs made in collaboration with well-known universities or global leadership forums as well as existing programs of reputed institutes. These programs are all about helping people become better at strategic thinking, coming up with new ideas, and leading others. Most significantly, they equip workers to handle future business challenges and push them to think beyond routine tasks, preparing them for their next role.
- Immersive experiences like global exchange visits, mentorship from senior executives, or even a “day with the CEO” give you a chance to see how business works in a bigger way and how decisions are made.
- Individual coaching and mentoring programs that help people become better leaders, communicators, and thinkers.
- Preference for internal job postings or global mobility programs, which opens multiple opportunities for exposure and growth.
- Special opportunities and platforms to contribute to business-critical roles which gives them a chance to help shape the organisation’s future.
Through these career-enhancing opportunities, companies send a clear message: high performance is not just rewarded but also nurtured. These practices build trust, reinforce long-term commitment, and ensure that top talent continues to grow within the organisation.
3 Tips to Make Employee Recognition Successful
- Always make recognition public: Announce the wins! You never know how many you’re inspiring by recognising someone.
- Share the specific reasons for the recognition: As Gina Creegan, Global Head of Experience Operations at Atlassian, rightly puts it: “Recognition should have a clear line of sight to your company values and behaviors that are important to your workplace culture. People need to understand why you are thanking them.”
- Make it timely: Recognise the performance as soon as it occurs, as it increases its impact. A delay may not create the best experience for the employee.
How Can the Experience of High-Performing Employees be Enhanced?
Employees are 56% more likely to give extra effort when they feel their contributions are recognised meaningfully. Recognising and retaining high-performing employees requires a holistic experience. A truly rewarding experience for these employees is not just about bonuses or incentives; it’s about building trust, offering growth, and consistently listening. It’s about making them feel seen, valued, and invested in.
Frequently Asked Questions
How can HR leaders and business executives reward high-performing employees effectively?
HR leaders can reward top performers effectively by offering monetary and compensation-based employee rewards; providing workplace privileges and special benefits; incorporating fun and culture boosters at the workplace and creating career elevators and growth opportunities.
How can organizations reward exceptional performance beyond monetary benefits?
By providing growth opportunities such as leadership development sessions, international exchange programs, Individual coaching and mentoring, preference for internal job postings and special opportunities and platforms to contribute to business-critical roles, organizations can effectively reward exceptional employees beyond monetary benefits.
How do Best Workplaces create memorable recognition experiences for high-performing employees?
Best Workplaces combine incentives with emotional and symbolic gestures such as Wall of Fame installations, Legacy Awards, custom trophies, gamified recognition platforms, and special recognition events with CXOs, instead of relying solely on standardized rewards. They further personalize the experience by sending letters to employees’ families or inviting them to celebratory ceremonies, making recognition deeply meaningful and memorable.
What are three tips for successful employee recognition?
Three tips for successful employee recognition are always making recognition public, sharing the specific reasons for the recognition and ensuring it is given at the right time.
How can leaders ensure fairness and transparency in recognizing exceptional performers?
People managers should clearly define what high performance looks like and communicate the expectations and rewards associated with it. Best Workplaces achieve this by leveraging technology through dashboards and digital recognition systems to track goals, monitor progress, and make recognition timely and meaningful.
