Rewards & Recognition
So, what’s the difference between rewards and recognition? It can be difficult to wrestle with some of the gray areas, but the distinction between the two is real and important.
What are Employee Rewards?
Reward is what the business offers and has a focus primarily on providing people with economic exchanges for accomplishing some sort of performance goal or set of performance goals – eg: an employee exceeds their sales goals and gets a bonus or they perform well during the year and you receive a raise. It is very impersonal.
What is Employee Recognition?
Recognition, on the other hand, is what the employee is looking for and is much more focused on contributions and effort. Recognition is personally meaningful because the employee is recognised for providing exceptional service to a customer or for helping to create a positive work environment, even if they are not within their official job description. But recognition means nothing if it is given out wantonly or if it seems insincere. You don’t connect with people that way.
Why are Rewards and Recognition Important?
Rewarding and recognising the hard work and results of your employees is beneficial for not only the employee, but for the business they work in too. Below we explore some of these benefits.
When hard work is recognised rather than simply expected, employees are less likely to lose motivation. Knowing that repeatedly going the extra mile will result in some type of reward or positive feedback from their team and management makes doing so easier. Doing that extra work is no longer meaningless.
According to Deloitte, companies that practice recognition of their employees see 14% higher productivity and performance.
Better Employee Retention
Hiring and training new staff can be expensive. When staff turnover is high this investment may be one that you don’t see a return from. Recognition and rewards result in happier employees who stay on longer, ensuring a better bottom line, even after the costs of rewarding and recognising.
Attract Better Talent
In the digital era, researching potential employers is easier than ever. While such processes may have been limited to word of mouth in the past, employer reviewing sites and social media have made things more transparent. When employees feel valued, they’ll have better things to say about their employers. Such positive reviews and first-hand accounts go a long way in positioning a workplace as an Employer of Choice.
Do you want to reward and recognise your team?
There is pressure on business to do more with fewer resources and even the best and most committed manager can be strapped for time or ideas on how to effectively manage their people or implement a recognition and reward strategy. Contact Akyra for an obligation free conversation.
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