Everyone wants to be appreciated, both at the managerial level and at the worker level, both parents and children. We never stop experiencing the need to feel valued and rewarded for our work, even when we feel independent and self-reliant.
In today's business environment, rewards and recognition have become more important than ever as managers have less way to influence their employees or shape their behavior. In times of economic hardship, rewards and recognition provide an effective way to encourage employees to achieve higher levels of performance.
Some elements that must be taken into account for the recognition and reward of the work of the employees are: adapt the reward to people, adapt the award to what has been achieved and be timely and specific.
From an individual perspective, related to quality of life at work, the rewards should be sufficient to meet the needs of the staff. If not, employees will not be happy or satisfied in the organization, as they tend to compare the reward systems with those of other companies. They also want rewards to be awarded equitably, so they compare their rewards with those received by other members of the organization. Therefore, it is important that reward systems are designed according to the needs of individuals.
Reward systems improve four aspects of organizational effectiveness:
- Motivate staff to join the organization Influence workers to go to work Motivate them to act effectively Reinforce the organization's structure to specify the position of its different members
Some of the most efficient forms of recognition cost nothing. A heartfelt word of thanks from the right person at the right time can mean more to an employee than a raise.
A good example of recognition would be the following:
For every four informal rewards (for example a “good job or a thank you very much”), a slightly more formal recognition should be given (for example, a paid day off); And for every four formal rewards, an even more formal one (for example, a plaque or public praise during a company meeting) should be given, and so on until you reach raises, promotions, and special assignments.
For several years in the management of companies we have worked with the monetary reward system through bonuses, incentives and prizes for achieving the proposed results. This is the most traditional way of motivating: rewarding when results are achieved and penalizing rewards when they are not given, is also known as the example of "the carrot and the stick"; it is effective most of the time to achieve the results. However, if monetary reward is the only type of motivation being used, there is a risk that the team may need a bigger carrot or a firmer club.
Difference between recognition and rewards
Recognitions towards employees are based on non-monetary modes according to their performance. Recognition has to do with the use of the employee's skills and qualifications to improve the performance and productivity of the organization. Similar to employee motivation, it encourages job satisfaction, engagement, and productivity. On the other hand, reward programs use monetary and financial incentives to compensate for the performance of employees.
We tend to use these two terms almost synonymously, often in disguise and almost always associated, but each has its own peculiarities and can serve different purposes. When making a comparison between reward and recognition, which are complementary, related but different tools, which can be useful when it comes to motivating people in the organization:
|
Reward |
Recognition |
|
| They are economic incentives that are intended to direct the employee's activity towards a particular result. | It is a token of appreciation for a job well done (already finished), for example, a gift. | |
| The reward is known to exist, it is known. | It is the result of a job well done, it is not known or necessarily expected | |
| It is generally tangible and very often money. | It can be tangible (for example, a gift) or intangible (for example, a compliment). | |
| Rewards, when included in salary, incentives or bonuses, are quickly forgotten. | Accolades such as a note or a gift can be remembered for a long time. | |
| It can be formalized in writing, such as through bonuses, or verbally, "if you do such…, we will give you which…" | Not written, unexpected. | |
| It is planned and executed, it has a tactical nature. | It has a psychological nature, it can be planned or spontaneous. | |
| It encourages the person to have the need to feel satisfied with the organization and with what it offers. | It encourages the person to have the need to feel recognized for their achievements. | |
| They produce an external motivation, for example, they satisfy the craving for food, accommodation and material services / goods. | They produce intimate motivation, for example, the need to feel good, competent, and needed by the organization. | |
| They get short-term changes, for example, changes in behaviors. | They promote long-term relationships and loyalty to the organization, the team and / or the director |
