Rewards vs. Recognition: What’s the Difference?

Many companies are increasing their recruitment efforts in order to retain top talent in a tough job market, and many are merging those efforts with a solid retention strategy for existing staff.

Rewards and recognition may be essential components of your company's retention strategy; however, knowing the distinction between the two is vital for proper implementation.

Rewards vs Recognition: What's the Difference?

Rewards are tangible benefits, whereas recognition praises a worker's achievements via verbal and nonverbal communication. It is critical to understand that awards are in addition to, not in place of, an employee's wages and benefits.

What is the significance of rewards and recognition?

Many businesses are still dealing with the fallout from the Great Resignation and are looking for ways to make their staff feel appreciated. While benefits such as health insurance are still the most appealing to prospects during recruitment endeavours, rewards and recognition can help keep the current team engaged and motivated. Employee engagement and performance can be improved by behaviours that express appreciation and affirmation in the workplace, according to the Journal of Applied Behavioral Science.

Organisations must cultivate engaged employees since they are frequently the most driven and create higher quality work. Furthermore, turnover is costly, and companies can save time, money, and stress by retaining high-performing personnel.

Keep in mind that employees want to be recognised for their efforts and services to the organisation. Integrating consistent rewards and recognition in your company's retention plan can have a huge payoff and make employees feel valued.

Examples of recognition and rewards

After achieving specified targets, employees usually know what to expect because rewards are usually fixed. Here are some instances of rewards:

1. Financial incentives. Gift cards are frequently used as monetary rewards. It could be a gift card to a team member's preferred store or a more generic gift card.

2. Food and treats.  Food and treats are a popular way for businesses to demonstrate their appreciation for their staff. There are numerous ways to provide this incentive, including office snacks, catered lunches, and company dinner parties.

3. A trip. Companies can go a step further and reward their staff with an all-expenses-paid trip. It could be a company-wide vacation or a specific incentive for going above and above under special situations, tenure and achievement.

4. Extra leave days. Giving employees paid time off is a terrific way to thank them for their efforts. Time off is an excellent method to refuel motivation after a hectic period, and staff appreciate the opportunity to unwind.

Recognition is usually more frequent, less costly, and less formal. Here are some examples of recognition:

1. Congratulating an employee for completing a task or solving a work obstacle during a company meeting can make the individual feel valued in the eyes of the company.

2. An email or message appreciating an employee on their work is a thoughtful gift that can help them feel validated and appreciated.

3. Posting acknowledgement on corporate social media or internal company chat channels is a simple and efficient approach to raising team morale, especially if your team is still working remotely.

Source: Bernie Portal