Recognizing the excellent work of an employee and giving out a tangible reward will not only encourage him to do better in his job but also encourage those around him to strive to attain to the form of excellent in order for them to receive the same recognition and reward. There is nothing wrong with encouraging an employee’s engagement in this manner.
Another results of companies expressing support for the efforts of their employees help the company in employee retention. And this is a big issue because a high staff turnover leads to poor morale that can make others want to look elsewhere. Employee retention is much easier than looking for new replacements and training them for the job. You will spend time and money on looking for new employees and training them than simply rewarding employees that are good.