Whilst teaching awards have become an established practice in higher education, important questions remain about their effectiveness in recognizing high-quality teaching, with recent research suggesting that they may have dysfunctional consequences. We investigate how awards are perceived and impact upon recipients and non-recipients and propose that the potential of teaching awards is mediated by career stage, focus and performance. We also make recommendations for how teaching awards can contribute to a culture of teaching enhancement beyond the recognition of individual practice. In this way, we make a contribution by showing how teaching awards can be designed and used to recognize teaching practice while limiting their dysfunctional outcomes.