Three types of recognition have been defined by NAER – formal, informal, and day-to-day. Organizations use all three types of recognition as part of their recognition strategy.

Formal Recognition
Formal recognition is a structured program with defined processes that link to organizational goals. It has a nomination process and an awards ceremony. Employees receive public recognition in a formal setting. In most organizations, this type of recognition occurs annually, and only a small number of employees are recognized. Examples include: years of service or values champion awards.

Informal Recognition
Informal recognition is less structured then formal recognition. It is designed for individuals and teams to reward them for making progress towards a goal. Informal recognition typically includes a low-cost celebration with mementos or refreshments. An example is hosting a department-wide lunch when a major project is complete.

Day-to-Day Recognition
Anyone in the organization can give day-to-day recognition. This includes verbal praise or a thank you note. This type of recognition is designed to recognize behaviors that support the organizational values.