What are Awards and prizes?

Q: Why are workplace awards important?

Awards recognise contributions, reinforce valued behaviours, and boost engagement . Recognition is a key driver of employee satisfaction. People want to feel their work matters and is appreciated.

Q: What makes an effective employee award program?

Clear criteria, fairness, timeliness, and meaning. The best programs recognise behaviours that align with organisational values and are perceived as fair by employees. Recognition loses impact if only favourites win.

Q: Should awards be monetary or non-monetary?

Both have value. Monetary awards are tangible but can feel transactional. Non-monetary recognition (public acknowledgment, trophies, experiences) often has more emotional impact. Many programs combine both elements.

Q: How often should awards be given?

Regular recognition matters more than infrequent big awards. Mix frequent informal recognition with periodic formal awards. An annual award ceremony plus regular spot recognition creates consistent acknowledgment.

Q: Are awards taxable in Australia?

Generally yes. Cash awards are taxable income. Non-cash prizes may attract Fringe Benefits Tax (FBT) depending on value and type. There are some FBT exemptions for minor benefits under $300. Consult tax advice for your specific program.

Updated 31 Jan 2026 • 5 min read

Awards and prizes in the workplace are formal recognition given to employees for achievements, contributions, or exemplary behaviour. They can include trophies, certificates, monetary rewards, gifts, or public acknowledgment, and are part of broader employee recognition and engagement programs.

Understanding awards and prizes

Workplace awards formally recognise employee achievements and contributions. They're part of broader recognition strategies that drive engagement by showing employees their work is valued and appreciated.

Why awards matter

Recognise contributions
Reinforce values
Boost morale
Drive engagement

Award elements

Clear criteria
Fair selection
Public acknowledgment
Meaningful reward

Types of awards

Performance awards: Recognising exceptional results and achievements
Values awards: Acknowledging behaviours that exemplify company values
Service awards: Milestone recognition (years of service)
Peer recognition: Nominated by colleagues rather than managers
Innovation awards: Creative solutions and improvements
Team awards: Group achievements and collaboration
Customer service awards: Outstanding customer experience delivery

Awards must be fair

If employees perceive awards as favouritism or politics, the program backfires. Winners should be genuinely deserving based on transparent criteria. Recognition that feels unfair breeds cynicism rather than motivation.

Best practices

Effective award programs

Clear criteria: Everyone knows what earns recognition

Fair process: Transparent selection, not manager favourites

Timely recognition: Close to the achievement, not months later

Public acknowledgment: Share the recognition widely

Meaningful rewards: Prizes that matter to recipients

Common mistakes

Same winners every time

When the same people always win, others disengage. Ensure criteria allow different people to be recognised. Consider different award categories to spread recognition more widely.

Generic recognition

Vague awards like "employee of the month" without clear criteria or specific acknowledgment. Recognition should be specific about what the person did and why it mattered.

Awards without broader recognition culture

Formal annual awards while ignoring day-to-day appreciation. Regular informal recognition matters more than infrequent formal ceremonies. Build a culture of ongoing acknowledgment.

Key takeaways

Workplace awards recognise achievements and reinforce valued behaviours. Effective programs have clear criteria, fair selection, timely delivery, and meaningful rewards. Awards work best as part of a broader recognition culture, not as a substitute for regular appreciation.

RosterElf's staff management helps Australian businesses build engaged, high-performing teams.

Frequently asked questions

Why are workplace awards important?

What makes an effective employee award program?

Should awards be monetary or non-monetary?

How often should awards be given?

Are awards taxable in Australia?

Written by

Steve Harris

Steve Harris has spent over a decade advising businesses in hospitality, retail, healthcare, and other fast-paced industries on how to hire, manage, and retain great staff. At RosterElf, he focuses on sharing actionable advice for business owners and managers — covering everything from smarter interview techniques and compliance with Australian employment laws, to building positive workplace cultures.

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General information only – not legal advice

This glossary article about awards and prizes provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

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