Hello,
First of all, you must determine what you want to reward and have categories in terms of competence, initiative, behaviors, attitudes, achievements, etc. Then decide if you would use monetary or non-monetary forms of reward and recognition.
Rewards and recognition can come in the form of letters, mail, memos to the employee concerned, and to the entire staff of the organization about the achievement or behavior, etc. Eventually, this is documented in the employee's file.
You can give day(s) off work if they would appreciate this.
You can publish their names on the notice board or company newsletter.
You can name a conference room after them.
You can give books addressed to the individual for the particular recognition, for example, being the best leader/motivator, best salesperson, best-dressed lady/gentleman, etc.
You can decide to have a quarterly or bi-annual mini-program where people have something to eat and then announce these rewards and recognitions, etc.
Of course, paying a bonus is one sure way of rewarding good performance.
Hope this helps. If I get more information, I will contact you again.
Taiwo