Employee Rewards and Recognition: A Comprehensive Guide


Introduction to the topic of Rewards and Recognition

Workplace recognition and reward giving to employees can be termed as a system wherein individuals are identified for their intrinsic or external significant contribution (Ali, and Anwar, 2021). Rewards and recognition are prevalent in a work environment where workers’ efforts are adequately recognized and praised in a timely and equitable manner. This includes suitable and more consistent forms of monetary support, and help in Assignment writing help Luton for any specific workers or to facilitate the purpose of team celebrations, acknowledgment of years of service, and accomplishment of milestones. In essence, rewards and recognition (R&R) is the appreciation and appreciation of the staff’s incredible performance. In today’s ultra-competitive corporate environment, the champions are those who are competent, specialist, and well-trained (Saunderson. 2021). 

Meaning of employee Rewards and recognition

Employee Recognition

Employee recognition is all about the employee’s experience and intangible benefits. A simple “Good job” or “Keep up the great work” is often enough to keep them happy, but that is only the employee recognition aspect of things (Burke, et al., 2017).

Employee Rewards

Employee rewards are more quantifiable and conveniently appreciated (Stegen, and Wankier,. 2018). Consider Diploma & certification courses  customer rewards – but only for employees. Rewards can take the form of points, special offers, or even gift items. However, don’t overlook rewards or perks like extra time off, working remotely, or flexible hour contracts.

 Difference between employee Rewards and Recognition

One of the repetitive conundrums in the HR world today is the linguistic utilization of two very similar yet distinguishable terms, recognition, and reward (Punjaisri, and Wilson. 2017). To fully comprehend the meaning of the two words, Dissertation assignment help people must first recognize the distinction between rewards and recognition, accompanied by a comprehension of how the two words accompany one another. Companies have long highlighted rewarding loyal customers through loyalty platforms and reward schemes. Companies are shifting their focus now, acknowledging that happy employees equal satisfied customers.

Rewards and recognition are distinct concepts, despite the fact that the two are recurrently used synonymously (Piggy loyalty (2022). Programs that track performance and try to inspire workers either individually or collectively are referred to as rewards. Regardless of whether they are monetary in nature or otherwise have a financial aspect tied to them, they are typically thought of as distinct from salary. The improvement of employee performance is a key objective of rewards programs. Although they are frequently combined with reward programs, employee recognition programs still serve a completely different purpose. By emphasizing praise on the workers and their allocated work or accomplishments rather than a material reward for betterment, recognition programs generally aim to give employees a psychological boost.

It is important to keep this distinction in mind even though many aspects of creating and controlling reward and recognition systems are similar, specifically when businesses want to motivate employees to keep costs down.

Intangible vs. Tangible

Rewards are almost always observable and related to objectives. Rewards, for instance, are frequently given out as cash, gift cards, travel, or merchandise (Meder, et al., 2018). Recognition is frequently imperceptible in the natural world but has incalculable value. Even without giving a reward, you can express verbal appreciation and recognition. Giving rewards without acknowledgment is never a good idea.

Transactional vs. relational 

Rewards invariably work on the premise that by doing “X,” you’ll get “Y” back. The exchange of relationships between people is much more important in recognition. The reward is ideal for keeping people in an organization, while recognition is fantastic for drawing new members (Iqbal, et al., 2017).

Consumption versus experience

When one receives money or a gift, it is typically spent, consumed, or used up until it expires and can be denoted as a reward (Agnihotri, et al., 2017). Recognition, on the other hand, is a wholly unique encounter that can last forever and involves total immersion. Carefully utilizing both will aid in addressing the distinctive differences that exist within each of us.

Non-Transferable versus Transferable

Cash, gifts, and gift cards are just a few examples of temporary rewards that can be transferred from one person to another (Zourou, and Ziku, 2022). Recognition is a permanent state that cannot be taken away from or exchanged with another person.

Conditions vs. No conditions

Rewards are heavily dependent on the outcomes of specific terms or conditions. In contrast to a fixed actually develop from specific actions, acknowledgment tends to be more self-sufficient. It’s about striking the right balance between rigidity and flexibility, or at the very least, recognizing when to use one over the other.

Surprise vs. Expected

It appears that when there are rewards involved, we confront a situation with the anticipation we will succeed in earning them. Receivers of acknowledgment, in contrast, are unaware that it is on the way to them.

Emotional vs. Economical Rewards 

In the entire global economy of production, dispersion, and income, incentives are a wise use of resource base. Recognition, on the other hand, is an interpersonal, emotional, and exploratory phenomenon. The ruler is the feeling, not the performance. 

Impersonal vs. Personal Rewards 

Rewards have less of a human factor as they are tangible and commercial, except when it comes to travel benefits. The key difference between recognition and appreciation is that praise is based on interpersonal correlation, going to celebrate people for who they are and what they do (Lee, et al., 2018).

Behavior vs. Outcome

Driven Rewards are given out to reinforce accomplishments, like when someone meets a predetermined revenue target or target lead acquisition. Anytime someone observes another’s positive behaviors, they are able to recognize them.

Fixed and flowing rewards

The choice between fixed and flowing rewards is made based on expected performance and desired performance. When praise or recognition is shared with others, it can expand the circle of people who have received it.

Importance of employee Rewards and Recognition in every organization

To keep engagement and productivity moving forward, rewards and recognition are crucial. In support of the value and advantages of employee rewards and recognition, consider the following points:


Many studies have supported the adage that “people will always work harder when they know they are appreciated.” One survey found that 79% of workers say that receiving recognition motivates them to work harder, and another 78% believe that receiving rewards increases their productivity (Joseph. 2023).

Satisfied employees

Numerous studies have shown that motivated employees work harder and produce more. It’s necessary to find the reason which is Rewarding and Appreciating. According to the University of Warwick, when employees are content at work, they are 12% more productive (Joseph. 2023). Employee happiness and productivity are directly related. People who are happy at work are frequently less stressed at home. This has a significant effect on employees’ capacity to perform well and lowers the issue of employee absenteeism.

Boosts confidence

Employee recognition boosts workplace trust in addition to maintaining employees’ happiness. According to a survey, 90% of workers who receive regular praise for their work are more likely to trust their boss than those who don’t (Joseph. 2023). Employees want to know that the management is aware of their efforts and that they are having an impact. R&R fosters trust, which not only motivates them to stick around but also to put more effort into fulfilling their assigned duties.

Employees are more motivated by rewards than by fear.

Many believe that the power of fear can stimulate individuals to act. Every employee’s lamest nightmare is being demeaned, relegated, or forced to fire, after all. Employees’ brains release dopamine, also known as the “pleasant hormone,” when they receive a reward or are shown appreciation. In other words, the brain’s dopamine levels rise when you are rewarded for doing something right, like supporting a teammate. The dopamine high makes you feel drunk. Therefore, in order to continue receiving praise and rewards, employees will make the right decisions.

Different types of employee Rewards and Recognition

No single solution works for everyone. Organizations have different systems for rewarding and recognizing employees. The specific needs of the company determine how a company recognizes and rewards its employees. To motivate and engage staff members, there are a number of different kinds of rewards and recognition that can be given. A few typical types are listed below:

Top-down recognition

Top-down recognition, in which managers thank the staff for their contributions, is among the most popular ways to reward and recognize employees (Davies, 2017). This can be achieved by:

Spot awards: These are given by managers to staff members who exhibit particularly admirable actions. This fulfills the employee’s necessity for immediate satisfaction. Since one can never predict when your employees will perform better than expected, these awards can be quite unpredictable. It is therefore better to be ready at all times.

When staff members reach particular milestones, they are given a service award.

Annual bonuses: In addition to salary, annual bonuses are paid based on a team’s or individual’s performance and are typically awarded at the end of the year.

Recognition on a daily basis

High-fives, low-fives, and thanks may be sufficient in the majority of situations.

Periodic praise won’t work if one wants the people he has chosen to work for him to give it their all every day. To get the best performance out of one’s staff, one must consistently inspire and motivate them. It doesn’t take much to keep employees happy and to maintain a productive workflow, just a little bit of praise or encouragement and constant motivation.

Peer-to-peer recognition

Gratitude notes: These are a few easy, inexpensive, and powerful ways to show appreciation at work. This can be done in a variety of ways, including, among others, by writing a letter or brief note on a stick-on.

Peer nominations: In this process, teammates can put one another forward for an award. The recipient of the most nominations receives the prize.

Informal acknowledgment of workers

This is entirely in the manager’s hands. The timing and location of employee recognition are determined by the manager. They are frequently distinctive or even unwittingly consistently consistent. One can give the allocated employees “comp-offs” in exchange for particularly excellent work or for working on a holiday when there is a deadline.

Possibility of receiving advanced training or invitations to conferences or seminars.

Recognize work anniversary dates

Formal employee acknowledgment

Set up a formal recognition program or well-tailored employee Rewards and Recognition platform as an alternative to the erratic nature of informal recognition to modest and regulated acknowledgment.

Some simple and effective ways to start employee Reward and Recognition programs in every organization

There are reward and recognition programs in many businesses, but they frequently don’t produce the desired outcomes. After receiving rewards for doing the same job for months, it is simple for employees to lose motivation. Employee motivation can be maintained with the help of appropriate employee recognition and rewards.

For one’s employee R&R program, establish clear goals.

Understanding the goals, or what one hopes to get out of the program, is crucial to curating an R&R program of one’s choosing. The objective must fit both one’s workplace’s policies and culture.

Determine a budget

Expensive incentives (such as a trip to Fiji) may encourage workers to complete tasks quickly and accurately, but these incentives are not sustainable, so one might end up doing more harm than good.

Create a committee.

To oversee the administration of such a curriculum, a committee made up of HR leads, manager-level executives, and a few other empowered employees needs to be formed right away.

Establish rules

Every successful reward program adheres to a set of standards. In order to maintain the program’s objectivity and fairness, core values must be established.


Employee recognition and rewards is a system that promotes participation and productivity in an institution in both external and internal aspects. Employee recognition used to be commemorated only after a specific period of time had passed or when the output was obtained. Our understanding is that the emphasis is more on performance. By expressing gratitude to workers for their commitment and hard work, a happy and engaged workplace culture is fostered. The identification method can be used in countless different ways, but there is only one unique office culture—the culture that exists for each individual employee. 


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