Thinking about launching an Employee of the Month program? You might want to hit pause.

The truth is, most formal recognition programs don't work. They’re either too sporadic, too common, too top-down—or just too forgotten. Some start strong but fade fast, becoming a source of disappointment or distrust. Others turn into popularity contests, reinforcing a sense of favoritism and hierarchy that alienates the rest of the team. I've even seen high performers intentionally pull back just to avoid being singled out.

But here’s the thing: it is possible to get employee recognition right.

I was speaking about this at a recent conference and asked the room if anyone had a recognition program they actually liked. Only one hand went up.

It belonged to a store manager from REI. She graciously shared her experience with their standout program—the Anderson Award—and gave me permission to pass it along to you. If you're looking to build (or reboot) a meaningful employee recognition program, this one is worth studying.

What Makes REI’s Anderson Award So Effective?

Here are 5 key elements that set it apart:

1. Peer-to-Peer Recognition
   Employees nominate each other, which makes the honor feel more authentic and avoids the perception of management playing favorites.
2. It’s Annual, Not Monthly
   This ensures it’s not just a checkbox or routine ritual. Annual awards build anticipation and maintain their significance.
3. It’s Selective
   Only about 1 in 100 employees receive the award. That level of rarity keeps it prestigious and meaningful.
4. It’s Values-Based
   Nominees are recognized for contributions that directly support REI’s mission and core values—not just for hitting metrics.
5. It Elevates Unsung Heroes
   Managers, directors, and VPs aren't eligible. This keeps the focus on frontline team members whose work often goes unnoticed.
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The Logistics: How It Actually Works

Behind every great recognition program is a process that reinforces its purpose. Here’s how REI makes the Anderson Award work, year after year:

1. Open Nominations
   Any employee can submit a nomination, which goes to the store or unit manager.
2. Peer Selection Committee
   The manager appoints a committee—typically chaired by last year’s winner—to review nominations and select the recipient. The manager stays out of the decision-making process entirely.
3. Creative Announcement
   The committee decides how to announce nominees and the winner. This changes every year, which keeps the award fresh and reflective of the team’s creativity and spirit.
4. Official Celebration
   The award is presented at a formal event, like a holiday store meeting. This underscores the company’s commitment to the program and gives space to honor nominees, recipients, and the committee itself.
5. Legacy and Connection
   Recipients spend three days at REI’s headquarters, connecting with other winners and company leaders. A stone engraved with their name is added to a walkway of previous recipients, making them a literal part of REI’s history. They also receive a practical, engraved item for everyday use—something functional, not just decorative.
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Bringing It Home

Does your organization have a recognition program that truly works?

The Anderson Award is a great reminder that honoring people doesn't have to be flashy—it just has to be intentional, values-aligned, and peer-driven. Recognition done well builds culture, deepens connection, and fosters pride—not just for the recipient, but for everyone involved.

What could your organization learn—or borrow—from REI?