How to Choose the Best Employee Recognition Software for Your Company Comparing Bonusly and Top Alternatives

Let’s be honest: finding the right employee recognition software is harder than it should be. There are a million options, every vendor says they’re the best, and you’re left wondering if you’re about to waste time, money, and goodwill on yet another tool no one uses. This guide is for HR leaders, team managers, and anyone who actually has to make a call about recognition tools—especially if you’re comparing Bonusly to a crowded field of alternatives.

Here’s how to cut through the noise, figure out what matters, and actually pick a system people won’t hate (or ignore).


1. Start With Why: What Problem Are You Actually Trying to Solve?

Before you even look at a single demo, get clear about your real goals. “Employee recognition” sounds nice, but what’s the pain point?

  • Are people burned out and you want to improve morale?
  • Do you want to reduce turnover?
  • Are you struggling to get managers to actually recognize good work?
  • Does your company need to show “engagement” to leadership?

Pro tip: If you can’t explain your goal in one sentence, you’re not ready to buy anything yet. Write it down and make sure your team agrees.


2. Make a Short List of Must-Have Features

Not all recognition platforms do the same thing—or do it well. Here are the core features most companies actually use (and what’s usually just fluff):

  • Peer-to-peer recognition: Can anyone give kudos, or just managers?
  • Rewards: Can people redeem points for real stuff (gift cards, cash, experiences) or is it just virtual high-fives?
  • Integrations: Does it work with Slack, Teams, Outlook, or whatever people actually use?
  • Reporting: Can you measure participation, engagement, and ROI, or will you be guessing?
  • Budget controls: Is it easy to manage spend, or will you be surprised by random charges?
  • International support: If you have a global team, do rewards work in every country?

Don’t get distracted by: animated confetti, avatars, or “AI-powered motivation engines.” If the basics aren’t solid, none of that matters.


3. Bonusly: Where It Shines—and Where It Doesn’t

Bonusly is probably the most recognizable name in the space, and for good reason. Here’s how it stacks up in real-world use:

What Bonusly does well: - Peer-to-peer recognition is dead simple. Anyone can give points and a message, usually in less than a minute. - Integrates with Slack, Teams, and email. This matters more than you’d think. If it’s not where people work, they won’t use it. - Actual rewards. People can cash out for gift cards, charities, or even cash (depending on your settings). - Decent reporting. You can see who’s getting recognized and who’s not.

Where Bonusly falls short: - Limited customization. If you want to radically change how recognition works or add custom workflows, you’ll hit walls. - Can feel “lightweight.” Some teams complain it gets repetitive: “Thanks for the help!” over and over, with little meaning. - Budget creep. If you’re not careful with settings, costs can sneak up—especially with large teams. - Not a fit for top-down/manager-driven cultures. It’s built for peer-to-peer. If you want managers to drive all recognition, it’s clunky.

Bottom line: For most companies, Bonusly is easy, quick to roll out, and gets the job done. But it’s not magic—and it’s not a fit for every culture.


4. Top Alternatives to Bonusly: Honest Rundown

Let’s cut through the marketing. Here are the main contenders you’ll see, and what they’re actually good for:

Kazoo (now WorkTango)

Strengths: - All-in-one engagement platform: Recognition, surveys, goals, performance reviews in one place. - Highly customizable: You can tweak workflows, set up approval chains, and get granular with budgets. - Decent global rewards catalog.

Weaknesses: - More complex to set up and manage. - Can feel bloated if you just want recognition, not a full HR suite. - Not the cheapest option.

Kudos

Strengths: - Strong on social recognition: Feels more like a mini social network for appreciation. - Good for top-down and peer recognition. - Solid reporting and analytics.

Weaknesses: - Rewards catalog isn’t as deep as Bonusly’s. - Interface can be busy/confusing for new users. - Fewer integrations.

Nectar

Strengths: - Simple, clean interface. - Affordable for small to mid-sized teams. - Slack/Teams integrations.

Weaknesses: - Fewer international reward options. - Not as feature-rich as others if you want surveys or performance tools.

Awardco

Strengths: - Huge rewards catalog, including Amazon. - Customizable for enterprise needs. - Good for scaling globally.

Weaknesses: - Not as intuitive for day-to-day users. - Set up can be time-consuming. - Reporting is powerful but takes work to configure.

Assembly

Strengths: - Lightweight, easy to use, and affordable. - Works well inside Slack and Teams. - Unlimited free plan for small teams.

Weaknesses: - Limited reward options. - Not built for complex policies or global teams.


5. Demo Like You Mean It (and What to Watch For)

Never buy without a real, hands-on trial. Here’s what to actually do during demos—not just nod along while a salesperson clicks through slides.

  • Try to send recognition as a regular user. Was it easy? Did you need instructions?
  • Redeem a reward. Is the catalog decent? Any hidden fees or weird restrictions?
  • Test integrations. Does recognition show up in Slack, Teams, or wherever your people work?
  • Check admin controls. Can you set budgets, permissions, and reporting without a PhD in HR tech?
  • Ask about international support. Don’t assume rewards work in every country.
  • Watch for:
  • Laggy interfaces
  • Buried settings
  • Surprise upgrade prompts

Red flag: If it takes more than 20 minutes to get the basics, your users will bail.


6. Rollout: What Actually Gets People Using It

No tool is magic. Here’s what actually works (and what to skip):

Do: - Get leadership to use it first. If execs give and receive recognition, so will everyone else. - Promote it at team meetings. Remind people it exists. - Set a small budget for real rewards. Points with no value are ignored fast. - Keep it simple. Default settings are usually good enough. Don’t overthink badges, levels, or point math.

Don’t: - Mandate usage. Forced recognition is worse than no recognition. - Overload people with “best practices” emails. Show, don’t tell. - Customize everything out of the box. Get people using it, then adjust.


7. Cost: What to Watch Out For

Pricing is almost always “per user per month,” but here’s what vendors don’t highlight:

  • Minimum seat requirements. Most tools have a floor (often 50-100 users).
  • Reward markup. Some tools charge you more than face value for rewards.
  • Implementation fees. Not always, but ask.
  • Annual contracts. Month-to-month is rare with bigger platforms.

Pro tip: Ask for a total annual cost, including reward spend, for your actual headcount. Don’t just look at the sticker price.


8. How to Make a Decision (Without Regretting It)

Here’s how smart teams pick a tool and don’t look back:

  1. List your actual needs. (No, “industry leader” isn’t a need.)
  2. Pick 2-3 top contenders. Don’t waste time on a dozen demos.
  3. Get hands-on. Use a real trial with a few coworkers.
  4. Ask real users for feedback. What did they like? What annoyed them?
  5. Check the admin side. Can you manage it without a consultant?
  6. Pick the one that’s easiest to use, not the one with the most features.
  7. Start small. Roll out to a pilot group, iron out the bumps, then launch company-wide.

Keep It Simple—and Iterate

Employee recognition doesn’t have to be complicated or expensive. The best tool is the one people actually use, not the one with the most bells and whistles. Start with the basics, get feedback, and don’t be afraid to switch if it’s not working. You’ll learn more in a month of real use than from any sales pitch.

Recognition is about making people feel seen. The software is just a tool—don’t let it get in the way.