What does Reward and Recognition mean?


One of the top reasons for people leaving their organizations is the lack of Employee Rewards and Recognition. Many organizations are confused between both of them.

Organizations need a better reward system for employees. The Reward system should focus primarily on 4 aspects :


  • Compensation
  • Benefits
  • Recognition
  • Appreciation


Unfortunately, organizations struggle to build a Reward and Recognition system that addresses all four areas. Moreover, they build an R&R strategy based on what has worked for other organizations as opposed to building it as per the needs of their organization. Sometimes, Reward & Recognition strategy is not aligned with organizational strategy.

As per Wikipedia, Employee Recognition is “Employee recognition is the timely, informal or formal acknowledgment of a person’s behavior, effort, or business result that supports the organization’s goals and values, and exceeds his superior’s normal expectations.”. 

Types of Employee Rewards:


Tangible / Monetary Rewards

A raise in salary, incentives, movie tickets, vacation trips, monetary allowances on special occasions, redeemable coupons, cash bonuses, gift certificates, stock awards, free or discounted health check-ups for the entire family, and school/tuition fees for employees’ children fall in this category. While designing company policies for monetary rewards, management should make sure that benefits should be as broad-based as possible. It requires sound planning and effective implementation.


Intangible / Non-monetary Rewards

Non-money related rewards may include trophies, authentications, letters of thankfulness, lunch/dinner with superiors, redesign of the representative lodge, enrollment of entertainment clubs, advantages, utilization of organization offices, recommendation grants, pendants, pins, journals, advancement, the state in the board, and so forth.


The Best Way to Reward Employees

A mature and effective system should reward and recognize the following two types of employee’s activity:

  • Employee Performance and
  • Employee Behavior


It is easy to connect R&R with employee performance as the majority of the organizations have some or other Performance Management System and it is easier for them to connect the outcome of the PMS with R&R. For example, you could implement an incentive plan or recognize your top salespeople for attaining periodic goals.


In comparison, it is difficult to connect R&R with behavior as it is more subjective. But, the key is to build your R&R Strategy in a way it encourages employees to exhibit the behaviors which the organization wishes them to exhibit more. It should be aligned with organizational values and culture too. 



Many organizations struggle in educating and inculcating the organization’s values in employees. To achieve this, organizations can come up with Awards on values that should be given to employees or teams which exhibit organization values. Another example is if an organization wishes to create a culture where failures are encouraged and people are motivated to take smart risks and learn from their mistakes, the organization should come up with a recognition program for those who live this.


What are the ways to give recognition to your employees?

  • Recognition for performance
  • Recognition for Extra Mile
  • Recognition for living values
  • Team Recognition
  • Recognitions for long tenure


Author / Educator – Govind Singh Negi, Senior Director, Talent Management & Delivery Center Lead, 3Pillar Global

An HR and Business leader, blogger, social activist having 18+ years of rich experience in the field of Talent Management. He has been awarded Top 100 HR Tech Minds in 2018 and also the founder of HR social group called HR SUCCESS TALK  and founding Trustee of a foundation called Amrita Devi Foundation which works for kids in Uttarakhand and bringing employment opportunities to the women in hills.


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