Rewards & Recognition




Rewards and Recognition is a system where people are acknowledged for their performance in intrinsic or extrinsic ways. Recognition & Reward is present in a work environment where there is appropriate acknowledgement and appreciation of employees’ efforts in a fair and timely manner. (Darwinbox, 2022)

One of the most important factors determining an organization's performance is the relationship between the employer and the employee. The staff's performance is directly tied to the organization's performance. It is critical to have a well-planned reward and recognition program that is aligned with the organization's end goals. Following are the main benefits of recognizing employee of the organization. (Andriotis, 2018)

·         Make employee happier

·         Improve employee retention

·         Cultivate a culture of self-improvement

·         Boost morale

 

Creating Rewards & Recognition Program

Employees' outstanding performance and achievements should be recognized and rewarded. As a result, the organization's productivity rises, and employees become more driven to perform better in their given roles. These programs help to develop a positive employer brand since privileged employees are always happy to talk about their employer's best HR practices and the benefits they receive as a result of working for them. When preparing reward and recognition programs in the workplace, the following factors should be considered. (Inc, 2020)

·         Identifying company goal

·         Identifying employee performance/achievements

·         Determination of the key measurements of the performance

·         Determination of appropriate rewards

·         Communication of program to employees

 

Differences between Reward & Recognition

Employees are a company's most valuable asset. Employers must recognize and improve employee performance by offering proper training, coaching, and skill development. Recognizing employees' efforts will boost productivity and reduce attrition. Although the terms reward and recognition appear to be equivalent, there are a few significant differences to be aware of when establishing an organization's reward and recognition program. (Vantagecircle, 2022)

Rewards

Recognition

 

         Tangible

         Rewards are consumed

         Rewards have economic value

         Rewards are expected

         Rewards are transferable

         Impersonal

 

 

         Intangible

         Recognitions are experienced

         Recognitions hold emotional value

         Recognition is unexpected

         Non- transferable

         Personal

 


Types of Rewards


Figure 01: Types of Rewards. Source (Vantagecircle, 2022)


The organization's reward and recognition program should be developed after a thorough study and alignment with the organization's vision, mission, and goals. This program should cover how employees will be recognized and what they will be given. (Juneja, 2022)

·         Monetary rewards

Ø  Salary Increment

Ø  Incentives

Ø  Allowances

Ø  Cash bonus

Ø  Gift vouchers

Ø  Air/train tickets or vacation trips

·         Non-monetary rewards

Ø  Letter of appreciation

Ø  Certificates

Ø  Awards

Ø  Dinner with boss

Ø  Use of company facilities

Ø  Say in management

 

“Appreciation can make a day, even change a life. Your willingness to put it into words is all that necessary.”  - Margaret Cousins

Conclusion

Organizations must frequently reward and acknowledge employees in order to maintain profitability and growth. As a result, the organization will become more eager and engaged. When employees believe that their work is valued, they will contribute their all to help the company achieve its objectives. Even the best-performing employees will not perform if there is no motivation, which highlights the importance of such initiatives. Nowadays, having a reward and recognition program is necessary to promote employee morale, improve performance, staff motivation and employee and customer satisfaction.


References

Andriotis, N., 2018. Employee Recognition in the Workplace: The Why and How. [Online]
Available at: https://www.efrontlearning.com/blog/2018/04/employee-recognition-workplace-benefits-ways.html
[Accessed 05 April 2022].

Anon., n.d. Reward & Recognition. [Online]
Available at: https://explore.darwinbox.com/hr-glossary/rewards-and-recognition?hsLang=en

Anon., n.d. Rewards & Recognition. [Online]
Available at: https://explore.darwinbox.com/hr-glossary/rewards-and-recognition?hsLang=en

Darwinbox, 2022. Reward & Recognition. [Online]
Available at: https://explore.darwinbox.com/hr-glossary/rewards-and-recognition?hsLang=en
[Accessed 05 April 2022].

Inc, 2020. Employee Reward and Recognition Systems. [Online]
Available at: https://www.inc.com/encyclopedia/employee-reward-and-recognition-systems.html
[Accessed 05 April 2022].

Jones, M., 2019. Why is Employee Reward and Recognition Important?. [Online].

Juneja, P., 2022. Employee Rewards and Recognition. [Online]
Available at: https://www.managementstudyguide.com/employee-rewards-recognition.htm
[Accessed 05 April 2022].

Vantagecircle, 2022. 50 Rewards And Recognition Ideas To Boost Employee Recognition. [Online]
Available at: https://blog.vantagecircle.com/rewards-and-recognition-ideas/
[Accessed 05 April 2022].

Vantagecircle, 2022. 8 Things To Know Before Starting A Reward And Recognition Program. [Online]
Available at: https://blog.vantagecircle.com/reward-and-recognition-program/
[Accessed 05 April 2022].

 

 


Comments

  1. You have discussed an important aspect as rewarding and recognizing employees leads to greater employee engagement, which increases retention and helps create a more positive overall workplace. Good article. All the Best!

    ReplyDelete
  2. Rewards and recognition is really important in an organization since it is a motivational factor for employee. However companies should establish a mechanism to recognize right person and reward him. Good article.. Best of Luck.

    ReplyDelete
  3. You mentioned that way of motivating employees enhances employee engagement, which increases retention and contributes to a more positive workplace environment. Excellent piece of writing. Best of luck to you.

    ReplyDelete
  4. Every organization should follow rewards and recognition to motivate employees and demonstrate that they are appreciated. The thoughts well explained in this article .Good one..

    ReplyDelete
  5. Rewards & recognition plays a vital role in satisfying, motivating and retaining employees with your organization. You have clearly discussed the difference between rewards & recognition. All the best !

    ReplyDelete
  6. Reward and recognition is a system where people are acknowledged for their engagement in intrinsic or extrinsic ways. Recognition and reward are present in a work environment where there are appropriate acknowledgment and appreciation of employees' efforts in a fair and timely manner while this article explained more on rewards and recognition. Good work and keep it up.

    ReplyDelete
  7. Employee recognition and rewards have become a very important component of today's successful businesses. Its popularity stems from its unique method of adding value to your employees' accomplishments. Companies should, however, set up a system to identify and reward the proper person. All the best.

    ReplyDelete
  8. Every organization should follow rewards and recognition to motivate employees and demonstrate that they are appreciated. well written. well done

    ReplyDelete
  9. Companies should Reward and recognise employees at right time. Or else it would impact employee motivation and eventually impact the performance of the organisation.

    ReplyDelete
  10. Awarding rewards has been a trend in current business world where with the high competition employees do not get satisfied just by saying "good work". As a way of motivation this has help organization to achieve their goals while making their employees lives enlightened. This article can help someone in gaining a good knowledge, why someone needs rewards and recognition. good article. Well done

    ReplyDelete

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