Deliver recognition and reward in an open and publicized way. If not made public, recognition loses much of its impact and defeats much of the purpose for which it provided. Do not however, think that public recognition will substitute for private, everyday, personal thank yous and respect. What happens 365 days a year has much more impact than what happens at an annual recognition function.
Timing is crucial.
Recognize contribution throughout a project. Reward contribution close to the time an achievement is realized. Time delays weaken the impact of most awards. An immediate 'thank you' or 'great job' is much more important than a proclamation six months later. Tailor your recognition to the unique needs of the people involved.