A sometimes overlooked but often very important aspect of running a business is acknowledging when things are going right… and then acting accordingly. Having procedures and policies in place to counteract any problematic situation that may arise is crucial for any company. However, so is reward and recognition… so how do you reward and recognise success in the workplace?
The difference between reward and recognition
Are you clear on the difference between reward and recognition? Both are used as a way to signal appreciation or thanks for a job or task completed successfully. A reward is normally something physical that has a monetary value, whilst recognition is something that occurs and offers the recipient a sentiment that cannot be bought. Furthermore, somebody receiving a reward will often know what’s coming, whereas recognition can come out the blue.
The best way to clearly show the difference is by looking at an example. Let’s say that David, who works for Company A, managed to sell the most product in a given month, and management decides he deserves some acknowledgement. They may buy David a gift card as a token of their appreciation, which would be his reward. However, management also decide to say “thank you” to David when they next see him at the office and mention his achievement in the company monthly newsletter – this is recognition. Interestingly, often reward without recognition does not make the same impact as using both tools together.
Employees tend to demonstrate higher engagement, increased motivation and higher morale due to being outwardly appreciated, making them likely to be more productive – it’s a win-win situation using a strategy that has been tried and tested (and is relatively straightforward to put into action).
Implementing reward and recognition schemes
We’ve covered the why, so now we turn our attention to the how. How can you go ahead and apply a reward and recognition scheme in your business? This will depend on your business type, what your employees value and what they want to get from reward and recognition.
There are now lots of online schemes and even some apps that are a great way to introduce reward and recognition in your company. You could also create your own system, although we always advise to keep your employees at the forefront of your mind. After all, offering enrolment in a training programme may not be attractive to employees near retirement age, whilst similarly, a younger workforce may not place as much importance on rewards that focus on things to do with families/children.
It’s worth keeping in mind that whether you have a set system in place or not, a simple “thank you” or “job well done” can also send just as strong a message as giving a gift that costs money. In addition, recognising long service is vital for employee retention which is also worth including in your reward and recognition strategy.
Which brings us on to our final point – the cost involved in the execution of reward and recognition. It’s all about getting the balance right, helping employees to feel like they are truly valued in your business.
Factors to take into consideration
If you are considering implementing a reward and recognition strategy, or reviewing a current strategy, involving employees at an early stage is key. Consider:
- Do they know what you have in place?
- Would they consider it rewarding or recognising their achievements?
- Is their value in it?
- If not, what is important to them and what would they like to receive?
If this is something you are considering, we can help you identify the right approach for your business. And if you have any other questions, please don’t hesitate to get in touch.
