5 Tips for Effective Rewards and Recognition

Tips for Effective Rewards and Recognition
Reading Time: 5 minutes

Now organizations all over the globe understand the importance of employee recognition and try to make their employees feel appreciated for their inputs. There are many types of rewards and recognition ideas to congratulate and show gratitude towards people. Companies can make their staff feel appreciated on multiple occasions such as significantly long service, exceptional work, or being a role model when it comes to following organizational policies.
Recognition program will definitely make employees feel valued as a part of the company. It’s also observed that when an employee receives recognition and rewards for their work, they are more likely to put greater effort in the future. Furthermore, it makes employees more satisfied with their work and their association with the company. This way you get better employee loyalty and engagement.
Also Read: What is RnR? Full Form and Benefits

What’s the Difference Between Rewards and Recognition?

The terms reward and recognition are often confused, as they are mostly used together. But there is a difference between rewards and recognition. Employee recognition refers to the verbal as well a non-verbal appreciation form of communication, while rewards are more tangible in nature.


What makes Rewards and Recognition Important?

Employee recognition is important to keep the employee morale high and motivate them for greater performance in the company. The employee recognition program can make them feel a crucial part of the company and build loyalty. The benefit of employee recognition is not just increased productivity, but also better engagement at work.
Following are the few benefits of the reward and recognition program at the workplace.



Every employee wants to be recognized and appreciated for their hard work. Employee recognition is a means to communicate that you appreciate their hard work. There should be a reward for efforts to make employees want to be one of the best employees for your company.
When employees receive a reward for a great performance, it gives them job satisfaction. Satisfied employees are always happy to put extra effort into the organization and can become a valuable asset in a crisis. As happy employees, they represent your company with the best customer service, resulting in an increased number of satisfied customers.

Employee Retention

Employee retention is a great concern for any company. Finding a replacement for employees is expensive, as the hiring process involves different types of expenses and a lot of time. The rewards and recognition can improve the retention in a company. There are many types of rewards that you can give to an employee. On the recognition, they are likely to stay longer in the organization.
The lack of recognition is likely to be among the top reasons on the list for leaving the firm. If you fail to recognize the effort of employees, they will feel that they are not important. This makes them put in a minimum amount of work and ultimately lose interest in working for the business.
Also Read: Tips to increase employee retention rate


If you are wondering how to initiate a feeling of competition in a staff, here is the solution. An employee recognition program is the means of incorporating healthy competition in a workforce and increasing productivity. When an employee gets appreciation from their seniors, it makes them work harder for better output. At the same time, people look up to their colleague and their achievement, they feel motivated. You can observe that when someone achieves something there are other members in a team who thrive for the same and that is a positive chain for better productivity.


Here are 5 tips for effective rewards and recognition at your organization.

1. Make all employees eligible

The aim of the employee recognition program is to motivate your employees to work harder and give better performance. To recognize an employee, you need to be inclusive of all of your workforce when it comes to reward and recognition. If you put the criteria to include some of your staff members while excluding the others, it does not serve the purpose.
Every employee should be a part of the employee recognition program of the company. When all the departments in the organization and the employees at every level in the structure participate. It raises the healthy competition in the workplace and also increases the collective efforts of the staff.
If you set some conditions that do not allow everyone to participate, it may make the excluded employees feel discriminated against. Your employees will feel that you don’t think they are capable of rewards and recognition. This can be very demotivating for the employee, and they may even lower their work in response to this.

2. Set clear Criteria

Set clear criteria for employee rewards and recognition. This will bring clarity to the employees to understand what are the actions and the behaviour that their company will be recognizing. The better you communicate the criteria, the more effort employee put in the desired direction.
To get the right reward and recognition criteria, you need to figure out what actions and behaviour you want your employees to adopt. The parameters can differ from team to team according to the responsibilities of the employees. For example, the criteria for rewards and recognition for the sales team will be different from the criteria for the finance team.

3. The Time Matters

Giving rewards and recognition to the employee should not go much further from their work. Make sure that you can recognize their hard work as soon as possible. The immediate recognition acts as a great motivating factor, whether it is just a verbal recognition or a physical or monetary reward.
When you give rewards and recognition to your employees at the right time, which is as soon as possible from their qualifying performance. It reinforces similar behaviour in the future. If you take too long to recognize your employee, they might lose their momentum or even get completely disinterested in the recognition and the rewards are given to them.

4. Make it specific

the recognition you give to your employees needs to be very specific, so it will encourage them to act accordingly in the future, too. For example- recognizing the efforts of your employees, let them know it is because of the sales target they achieved or the exceptional work they showcased in the particular project.
Your rewards and recognition should not be vague, otherwise, they may appear to be random and employees might take them for granted. When you have multiple criteria and reward and recognition programs running in the workplace, it can be confusing for the employee to understand what exactly is being appreciated about their performance. Having clarity is crucial to ensure that employees focus their efforts with even more enthusiasm in the future.


5. Give appropriate rewards

The rewards and recognition for the hard work of your employees can be done in many forms. Sometimes a simple “thank you” might be enough for a job well done. You need to understand that recognition is important for everyone, but the types of recognition and rewards should be different according to the occasion.
Study shows that monetary reward does not work similarly for every employee or all type of achievements. Rewards and recognition can make people feel appreciated, but if it’s not appropriate, they might make your employees feel inadequate.
For example, the employee who is giving an exceptional performance for the last five years is more likely to see the promotion as an appropriate reward instead of just a verbal appreciation. Similarly, sometimes the monitory rewards are inefficient. That makes it important to consider different forms and recognition of ideas.



Reward and recognition are crucial for employee engagement and productivity. It also impacts employee loyalty toward the company. You can have different rewards and recognition programs to appreciate employee efforts and make them feel valued in the company. While designing an employee recognition program, you need to keep a few things in mind to make it effective for the productivity of your business.
The recognition program will increase an environment of healthy competition in the workplace, but ensure that you allow everyone to participate. Brainstorm the ideas for the rewards and make them appropriate to the employee’s achievement. Set very specific criteria and communicate those clearly to all your employees to avoid any confusion. Similarly, it is important that you let the employee know what exactly in their performance is being appreciated. Remember that when you get your employee recognition right, it affects not only your employees but your customers too.

Related Post

Contact Us

First Name(Required)
Company Name(Required)
This field is for validation purposes and should be left unchanged.

Contact Us

Company Name(Required)
This field is for validation purposes and should be left unchanged.

We value your privacy

We use cookies on our website to provide you with the best experience. If you continue browsing, you consent to our use of these cookies. If you like to know more, take a look at our “privacy policy”.