In today's changing business scenario, organizations are coming up with innovative reward and recognition programs. Rewardsand recognition, which sound alike, do not mean the same. They differ in the way in which they are awarded. Recognition programs should be reviewed from time to time to improve the ones that are effective.
In today's business scenario, managers and organizations have to think out of the box to attract, motivate and retain their employees. Hence, to cater to their needs, companies are coming up with innovative reward and recognition programs. Traditionally, employees were quite satisfied with a fair salary, minimum benefits, etc., but in today's modern scenario, the employees want their management to know how their contributions are valued, not just once a year, but time and again when the jobs are done and the targets are achieved. Although rewards and recognition go hand in hand, they differ in the way in which they are awarded.
Bob Nelson defines recognition as, "Appreciating someone for something they have done for you, your group or your organization."3 In simple terms, recognition means reinforcing progress towards the desired performance. On the other hand, reward is defined as , "Benefit resulting from some event or action, appreciation for a service rendered." It can also be defined as the benefit that an employee receives after results are achieved. Hence, to attain the desired goals, reward systems should be closely aligned to organizational strategies and business objectives.
From a survey conducted by Websurveyor online survey in 2002, it was found that 99% of the employees indicated that there is a need for organizations to recognize their good work. In a research conducted by Bob Nelson, it was found that 84% of the employees felt that there is a need for non-monetary recognition, as this would increase their performance levels. |
