04. REWARDS & RECOGNITION in the workplace

 REWARDS  &  RECOGNITION  IN THE WORKPLACE

            “Employee rewards and recognition” is a potential way to approach to retain your employee. For Example, It can be a financial incentive such as a salary hike, bonuses, health insurance, life insurance, and pensions, etc. Incentive programs are the best way to show appreciation for your employees.

 

            Employee rewards and recognition in today’s organizational world have proven to be one of the key components behind the success of every business today. This unique way of adding value to the work and achievements is what made it popular. And HR around the world is trying to make the best use of rewards and recognition. This idea for recognition has been there for ages. The moment when an individual is acknowledged for their good deed, they feel more motivated. And this will lead them in getting better and be more committed to the goals of the company.

 

            Rewards and Recognition; create the strongest association of the employees with the company. It motivates them to show the best version of themselves via their outstanding performances. Like we need oxygen to survive, water to remove our thirst, food to remove our hunger, shelter to keep us safe and private – ‘The very same way, employees need Rewards and Recognition to work with the organization for a long term.’

Difference between Rewards and Recognition

            In the HR realm today, one of the recurring conundrums is the semantic usage of two very similar yet different terms, reward, and recognition. To fully grasp the meaning of the two words we need to understand the difference between rewards and recognition and then comprehend how these two words complement each other.

Reward 

            A reward is a gift (something tangible) you choose to give your employees for accomplishing a goal. Employee rewards can be distributed for several reasons, like achieving service milestones, performance goals, and more. Common employee rewards include branded e-voucher gifts, travel tickets, bonuses, and gift cards.

Recognition 

            Recognition means acknowledging an individual’s achievement. These achievements are significant and have specified standards. Recognition can be awarded for any achievement, big or small, for thank yours, work anniversaries, birthdays, or going above and beyond the call of duty. Therefore, presenting awards for any occasion can be a great way to show appreciation and gratitude to your employees.

Why is Reward and Recognition Important?

 

            Rewards and recognition program helps improve productivity, employee engagement, and performance. It is a clear message of what they are doing. Also, they focus on positivity. Recognizing the best performer and their successes with rewards, employees will keep concentrated and driven to do better. It helps the employee to set their goals and reach them.

            Rewards are important to enhance organizational goals, employee happiness, customer satisfaction, values, and employee motivation to achieve more. 

             In modern times it is straightforward for an employee to feel unwanted or ignored and no appreciation even after completing a specific target or goal. At the same time, these employees who don’t feel recognized can leave the job within a year. This is because the absence of Employee Rewards and Recognition motivates the entire team and gives them a massive sense of accomplishment.

             When an employee feels valued and important because of the work they do, it will boost their confidence and increase the employee productivity and desire to stay longer at the organization. Also, this will lead to Retaining employees, which is one of the most significant advantages for the organization. It also works as a Motivation factor.

Types of Rewards and Recognition

• Monetary rewards - Bonuses, salary increases, and cash prizes

• Non-monetary rewards - Additional time off, flexible work hours, and opportunities for professional development or career advancement

• Recognition awards - Certificates, plaques, and trophies that recognize employees for their exceptional performance or contributions to the organization

• Public recognition - Announcing an employee's achievements at company meetings, in company newsletters, or on social media

• Employee recognition programs - Employee of the month/year awards, that provide ongoing recognition and rewards to employees who consistently demonstrate excellence in their work

What are the benefits of Rewards and Recognition?

            Rewards and recognition help in keeping the employees engaged and motivated. It becomes important as workers who are motivated are usually more productive in their work. 

• It makes a positive impact on the organization’s culture. 

• Recognition and appreciation empower employees. 

• Increases employee satisfaction, hence employee retention lowers down. 

• It helps in boosting the team spirit and promotes healthy competition. 

• It also helps in building a strong employer brand. 

Some of the major benefits of rewards and recognition in business are:

1. Productivity:

There’s no secret that well-engaged staff or employees are more productive and active. If the employee’s efforts are praised and rewarded, it will push the employee to work better.

 

2. Job Well-Being:

Rewarding the work of an individual shows that the work done is valuable to the organization. It shows that their work is worth rewarding and is important. This makes an employee feel good about their job.

 

3. Employee happiness

When an employee is happy and motivated, their performance improves because of the positive feeling they are getting from the organization. If an individual is treated with respect and gratitude, he will try to work better in return. Spreading positivity will only lead to employees engaging more and delivering the best.

 

4. Retention

Retention is one of the best advantages of this program. It retains the employee and saves a lot of time and money for the organization. As the time required to find an employee and train them would be too lengthy. So it’s better to retain employees.

How Recognition and Rewards Impact Engagement and Performance

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            When employees are recognized for their hard work and achievements, they are more likely to feel motivated to continue performing well. This can lead to increased engagement and productivity. Additionally, providing rewards (e.g. bonuses or additional time off) can serve as an incentive for employees to go above and beyond.

Improve Employee Retention

            Rewards and recognition programs can have a positive impact on employee retention. These programs can make employees feel valued and appreciated, which can increase job satisfaction and motivation. When employees feel like their hard work is being recognized and rewarded, they are more likely to be committed to the organization and less likely to look for opportunities elsewhere.

Create a Positive Work Culture

            Rewards and recognition programs can also help to create a positive work culture, which can also contribute to employee retention. When employees feel like they are part of a supportive and positive work environment, they are more likely to stay with the organization for the long term and feel comfortable investing in doing better work for the organization.

Boost Morale

            Additionally, rewards and recognition programs can improve morale and boost employee engagement. When employees feel like their contributions are being acknowledged and rewarded, they are more likely to be committed to the success of the organization. This can lead to increased productivity and better overall performance, which can benefit the organization and help to retain top talent.

Investing in Professional Growth

            One effective way to drive employee engagement is to provide opportunities for personal and professional growth. This can include training and development programs, providing access to mentoring and coaching, and creating career frameworks for employees — all providing them with a vision of their future within the company. By investing in employee development, a company can create a culture of continuous learning and growth. This can help to engage employees and motivate them to perform at their best. This is one form of reward that can have a powerful effect on performance and engagement over time.

conclusion

            Employee rewards and recognition is a method that enables performance productivity and engagement in an organization in both inside and outside ways. If employees get an appreciation for their hard work, responsibility & efforts build an engaged and happy culture. Recognition & Rewards provides a NEW LIFE to the employees – as a result, they work harder even more and more! Being a CEO, make sure that your company is a people company that keeps your employees filled with motivation by always making them feel unique about the contribution they have given to your organization. If you are an employee, then look out for working in the companies that follow such practices.

References

Rewards and Recognition in the Workplace: Boosting Employee Performance & Engagement (criterionhcm.com)  online  https://www.criterionhcm.com/white-papers/rewards-and-recognition

Employee Rewards and Recognition: A Comprehensive Guide | Empuls  https://blog.empuls.io/employee-rewards-recognition/.

31 Effective Tips for Employee Rewards and Recognition 2024 (startuphrtoolkit.com) https://www.startuphrtoolkit.com/employee-rewards-and-recognition/.

What is Rewards and Recognition? - HR Glossary - Xobin https://xobin.com/hr-glossary/rewards-and-recognition.