Organizational growth on Employee Reward &Recognition

 

Employee Reward & Recognition

(northstar meetings group,2021)

Organizational growth on Employee Reward &Recognition

 

Employees are the most recognized workforce in an organization. The Productivity and Sustainability of an organization are decided mainly by them. If the employee gets the correct recognition & rewarded well for, their work and commitments, the effort will be more than expected by them. 

All employees are not as same as their efforts might differ according to the category of them. They can have a different work experience.

 

Reward strategy

Reward strategy defines what an organization wants to do about reward in the next few years and how it intends to do it. It leads to the development of a reward system that consists of the interrelated processes and practices that combine to ensure that reward management is carried out to the benefit of the organization and the people who work there. This is strategic reward, an approach based on the beliefs that reward and business strategy should be integrated and that it is necessary to be forward looking – to plan ahead and make the plans happen. Reward strategy should be underpinned by a reward philosophy as described in the first section of this chapter. The chapter continues with a definition of the meaning of reward strategy, a description of its characteristics and how it is designed and implemented. This is followed by a critical evaluation of the concept of reward strategy. The rest of the chapter is devoted to an analysis of the components of a reward system.

(Armstrong & Taylor, 2009)

 

Recognition Strategy

A recognition strategy is a definitive statement and plan showing intent and commitment to develop, implement, and nurture specific program objectives.

When a recognition strategy team meets, everyone works to align the business's ideal employee recognition approach with the existing or ideal culture, including its mission, vision, and core values. Further, it is also essential to figure in the organization's business strategy and objectives to determine how valuable employee recognition is.

A few key details associated with winning recognition strategies include:

• Project planning
• Goal setting
• Budgeting tasks

Ultimately, a successful recognition strategy results in an organizational environment where all employees, down to the newest hires, feel welcome and appreciated daily and in the grand scheme of operations.

(Russell, 2022)

(Vantage circle, 2018)

Why Employee Reward and Recognition Matters

1.       It Helps with Employee Retention

The best way to keep employees happy is to make them feel valued and give them opportunities to grow within your organization. 

For example, this LinkedIn report reveals that 94% of employees will stay longer in an organization if it helps them grow and learn. Therefore, offering tangible rewards that promote professional development will help you cut down on employee turnover.  

2.       It Improves Productivity

When well-structured incentive programs are in place, they can boost employee morale and performance by 44%. Furthermore, 85% of workers feel more motivated to work better when they have an incentive. This makes having an employee reward program a no-brainer.

3.        It Attracts Talent

Companies find it challenging to recruit top talent. If you face this problem, including incentives can help you snag the best workers. When you use the employee reward examples and ideas for remote staff below, you’ll be seen in a good light externally and look more attractive to the right talent.

(Ojaokomo, 2023)

Differences Between Employee Rewards and Recognition

1. Tangible vs. Intangible

Rewards are always tangible, and tied to goals. For example, rewards typically come in form of cash, travel, merchandise or gift cards. Recognition is often invisible in nature and yet priceless in value. You can give verbal praise and recognition without giving a reward. You should never give a reward without giving recognition.

2. Transactional vs. Relational

Rewards are always if you do “X” then you’ll get “Y” in return. Recognition is much more of a relational exchange between people. Rewards are great for attracting people to an organization, and recognition is perfect for retaining people.

3. Consumed vs. Experienced 

When you receive money or a gift, it is usually spent, used up or somehow consumed until it ends. In contrast, recognition is a total immersion experience and a personal encounter of the best kind which can last forever. Carefully using both will help address the unique differences within all of us.

4. Transferable vs. Non-Transferable

Certain rewards (e.g., Cash, gifts, gift cards) can be passed from one person to another and are temporary in nature. Recognition cannot be removed from the person it's given to or exchanged and is permanent in nature. Focus on achieving that kind of permanence through recognition while using tangible rewards to make immediate impacts.

5. Conditional vs. Unconditional 

Rewards are very dependent consequences based on certain terms or conditions. Recognition, however, tends to be more independent and not part of a fixed result derived from specific actions. It is about blending rigidity with flexibility or at least knowing when to use one over the other.

6. Expected vs. Surprise

It seems that, with rewards, we go into a situation knowing that if we perform well, we deserve the reward. With recognition, on the other hand, recipients have no idea it is coming their way. Never let anyone down by not giving them a merited reward and learn to be spontaneous with appreciating and celebrating people every day.

7. Economical vs. Emotional 

Rewards are a prudent use of resources in the whole economy of production, distribution and income. Recognition, in contrast, is a psychological and emotional event, a felt phenomenon. Remember that performance may reign but feelings rule!

8. Outcome vs. Behavior-Driven

Rewards are used to reinforce achieved results, such as when someone hits a specific revenue goal or designated lead acquisition. Recognition can happen anytime someone notices the positive behaviors of another.

9. Fixed vs. Flowing

Rewards are fixed and determined based on desired performance and the expected returns. Recognition is free-flowing from one person to another and can be expanded when that recognition or praise is shared with others. 

10. Impersonal vs. Personal

Rewards (with the exception of travel rewards) have little human dimension due to their tangible, contractual nature.  Recognition differs because it is based on human connection, celebrating people for who they are and appreciating what they do.

(Saunderson, 2021)

Reference

 

 Armstrong M, Taylor S, (2009) Reward Management – Strategy & Systems chapter 26 Armstrong’s Handbook of Human Resource Management Practice, 13^th Edition”, London: Kogan Page. (Accessed on 01/04/2024)

Ojaokomo N, (2023) Employee Recognition, nectar (online) Available at https://nectarhr.com/blog/employee-reward-examples-and-ideas#:~:text=Give%20Out%20Company%20Swag,as%20a%20sign%20of%20appreciation  (Accessed on 01/04/2024)

Russell R.S, (2022) What is A Recognition Strategy, Cashort.com (online) Available at https://www.cashort.com/blog/what-is-a-recognition-strategy (Accessed on 01/04/2024)

Saunderson R, (2021) Top 10 Differences Between Employee Rewards and Recognition, northstar meetings group.com (online) Available at https://www.northstarmeetingsgroup.com/Incentive/Strategy/Top-10-Differences-Between-Rewards-and-Recognition (Accessed on 01/04/2024)

 

Vantage circle, (2018) Employee Rewards & Recognition Program (Video). Available from https://www.youtube.com/watch?v=fLTtHkUxmrM . (Accessed on 01/04/2024)