Merit Increases or Awards/ Employee of the Year Award
Some of our staff are tossing around the idea of a Merit $$ Increase for someone who does an extraordinary job, exceptional performance, etc. and or when they notice an employee who goes above and beyond in some manner, i.e., stays late to help a department get a job done on time, which in turn helps the company as a whole. Perhaps give them a gift card, tickets to movies, etc.
My thought as an HR Administrator is awards whether it be a merit raise or a token of appreciation giving the gift, often causes bad morale as you don't always see everyone doing a terrific job or a job above and beyond due to the type of work they do.
Also Employee of the year awards which we do have now seem to cause bad moral. Can anyone out there give me some ideas of whether or not you do do any of this and if so what has your experience been with this? Thank you