Rewards And Recognition

Meaning & Definition

Rewards And 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. This includes appropriate and regular financial compensation, as well as employee or team celebrations, recognition of years served, and/or milestones reached.

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Rewards & Recognition Starter Kit  Your Guide to Building a Strong R&R Program Learn More
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Frequently Asked Questions (FAQ's)

  1. How do you create a rewards and recognition program?

    Rewards and recognitions have evolved in the last few years, and a bunch of new trends in the rewards landscape are bound to change the shape of the future. To create a successful rewards program for your organisation, the following checklist can prove useful -

    1. What is the intent of running the program?
    2. What cultural & behavioural problems are you trying to solve or values are you trying to incentivise and promote?
    3. Who can give? Who can receive?
    4. What are the controls? Budget allocation per employee, number of times rewards can be given, number of times rewards can be received, etc.


    A successful rewards program should -

    Link Rewards with Business Outcomes

    Reward programs work, if they are strongly linked to business objectives and the employees know what is expected of them in their jobs - employees need to see the connection between their own work and the overall goals of the company.

    Personalise Rewards

    One size doesn't fit all. To put it simply, nearly every company's employee base is highly individualised, and what motivates one person won't necessarily motivate another. So, it is better to tailor-fit an incentive program to individual wants and desires.

    Contain Clear Messaging

    Messaging is integral in achieving the engagement of employees towards your rewards program. What is the purpose of your employee rewards program? Is it to improve customer service? Team building? Training? Be clear and concise. Define your rewards program.  Check out our guide on building a successful reward program

  2. What are the different types of rewards and recognition?

    The different types of rewards are -

    1. Bonuses
    2. Variable Pay
    3. Stock Options
    4. Written/Verbal praise


    Recognition on the other hand can take a variety of forms. Structured programs can include regular recognition events such as banquets or breakfasts, employee of the month or year recognition, or an annual report or yearbook which features the accomplishments of employee. A job well done can also be recognized by providing additional support or empowering the employee in ways such as greater options of assignments to choose from, increased authority, or naming the employee as an internal consultant to other staff. A point to be noted is that the recognition itself may have a monetary value (such as a luncheon, gift certificates, or plaques), money usually is not given to recognize performance.

  3. How do you promote recognition in the workplace?

    One of the best ways to promote recognition in the workplace is to provide employees with opportunities to learn and help them make themselves better at what they do. To take it a step further, it will also be great to incentivize learning and rewarding those who have taken the time to focus on self-improvement. The way an organisation’s leader manages the employees also plays a significant factor in employee motivation. Letting the employees know that their hard work is being recognized by the management can help motivate the company’s most valuable asset.
    Here are 20 Rewards and Recognition Ideas that Your Employees Will Love.

  4. Why recognition is important in the workplace?

    Recognition in the workplace is important as it leads to -

    Increase in productivity

    Rewarding and recognizing tends to increase employee productivity in the workplace. It makes them go the extra mile. Engagement at work stimulates a spirit of teamwork and acts as a catalyst for high performance. It is important to make sure that the high performers are rewarded and recognized timely.

    Stimulating development and career progression of employees

    Employees tend to do more when they are recognized and rewarded for good work. It encourages development and career growth since it puts the employee in the position to do more and elevate their work performance. It gives employees morale to do more and exceed the expectations the company has from them.

    A sense of satisfaction and morale

    Reward and recognition cultivates a positive relationship between employers and employees. The employer will benefit from an empowered employee delivering good results. On the other hand, a recognized and rewarded employee will become confident and satisfied with their work. Enhancing employee morale can contribute to lowering the turnover rate too.

    A stronger employer brand

    Employees talk and share experiences with those of other companies. A company that recognizes and rewards employees builds a positive brand when its employees talk positively about it. Organically, the company becomes recognized for its best HR practice and this can impact the way it works with external stakeholders. The company that recognizes and rewards its employees will not only be known for its productivity but also for its good leadership practice and people management skills.

  5. How to implement a reward system?

    To successfully implement a reward system, the steps listed below should be followed -

    Clarify Your Vision

    Before you start implementing reward programs, you must be clear about what they involve - Goals, Benefits, Cost.

    Build A Committee

    A dedicated set of people should be appointed who will be responsible for the implementation, managing, and establishment of reward programs.

    Define Clear Characteristics

    The next step before executing reward programs is to understand the characteristics that should act as the building block of the system -

    • The recognition should be timely. Recognition delayed is recognition denied. Delaying to appreciate top performers only results in lessening of the impact of the recognition when it is eventually given.
    • Recognition, just like motivation, should be frequent. It is only valid when handed out regularly.
    • Recognition is more meaningful when distinct accomplishments get celebrated. Employees should know that a certain amount or kind of performance will bring in praise.

    Define Clear Criteria

    The key to meaningful recognition in the workplace is to set the criteria for getting rewarded and appreciated. Review a series of criteria such as below to find out what suits you best:

    • What type of behaviors should be rewarded?
    • How should the said behaviors be rewarded?
    • How often should you recognize your employees?

    Ensure Successful Implementation

    Once laid out, ensure the rewards program is being implemented as per the plan.

  6. What is the relationship between reward and motivation?

    Employees want fair compensation and benefits as much as they want meaningful and fulfilling work. Part of what makes work more meaningful is recognition for a job well done, or more specifically, frequent praise and awards for their efforts. A majority of employees infact consider rewards essential to their happiness at work, meaning that employers have a responsibility to incorporate reward and recognition programs into their companies if they want to attract and retain high performing employees. After all, happy employees are usually productive employees, and happy employees contribute to higher morale. When morale is high, turnover is low, and the business has a greater chance of being successful and hitting revenue targets.

  7. What is the best method to measure the success of a rewards & recognition (R&R) program in an organisation?

    One of the best ways to measure the success of an R&R program in an organisation is to seek direct feedback from the employees. This can be done by sending out paper surveys after the program has finished or preferably set up an online survey. By soliciting the feedback of employees, organisations can gain a better insight into the views and opinions of the individual members of the workforce about the employee rewards and recognition program.

    Another effective way of measuring the performance of R&R programs is to measure the before and after satisfaction levels of the employees. This can be done by conducting surveys where employees are required to answer questions that can help organisations access the overall satisfaction level of the members of its workforce as well as answering specific questions related to their views about the organisation’s rewards and recognition practices.

    A major benefit of a successful R&R program is that it helps organisations improve their talent retention rates. Thus, analyzing the changes in retention rates can also help organisations measure the success of their program.

  8. What are the differences between incentive, benefit, rewards, and recognition?

    An incentive is something which encourages an employee to contribute towards benefit of the organisation.

    Benefits are non wage compensation paid to the employees while some are mandated by law and some differ from firm to firm.

    Rewards are monetary or non monetary compensation apart from their salary which is given to the employees on account of their performance to motivate them.

    Recognition is the process of honoring employees for his/her level of service and is meant to encourage repeat actions, through reinforcing the behavior the organisation would like to see repeated.
    Here's our guide on how to Design The Perfect Employee Rewards Program

  9. What are the common mistake to avoid while creating a R&R program?

    The common mistakes that should be avoided while creating an R&R program are -

    Lack of clarity in communication

    Clear and precise communication is an important factor in determining the success of any new rewards or recognition program. The criteria of the reward system and what kind of behavior is being recognized must be clearly communicated to all the employees and stakeholders.

    Outsourcing rewards

    Organisation these days prefer to outsource their rewards programs to an external agency or vendor and many times these agencies are unable to judge the needs of the organisation.

    Non-existent or little promotion

    As stated above, a planned communication strategy such as pre-rollout announcements, ongoing updates, etc are necessary for the success of an R&R program. Employees receive countless emails daily so having a message that is meaningful and consistent is key.

  10. What are the technology involve in rewards & recognition?

    One way of increasing job satisfaction through an R&R program is through instant peer recognition, which allows employees to thank or compliment their colleagues for a job well done, perhaps through a company intranet system or social tools that allow them to show instant appreciation. A more structured rewards and recognition module could be the way forward for some workplaces, focusing on easy-to-measure metrics, such as reaching internal milestones or KPIs, which can then be monitored by the HR business person, with the data being used to learn more about what is working for the business.

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