Sunday 13 May 2012

Recognition and Reward System





 “People may take a job for more money, but they often leave it for more recognition”. 
~Bob Nelson


The old adage “Look after the small things and the big things look after themselves” can easily be applied to the workforce of an organisation. “Look after your people and the business will look after itself”. It could not be more relevant today as when it was first said. The staff in an organisation is more than employees. They are valuable individuals with unique competencies and characteristics who require appreciation as much as a paycheck. People need to know  not only how well they have achieved their objectives or done their work but  also that their achievement are appreciated. Recognition and Rewards give employees the extra push they need to do their jobs just a little bit better. Organizations that fail to effectively recognize their employees are losing the very workers they wish they could keep.

Reward and recognition is concerned with the range of practices an organisation undertakes (financial and non-financial) to compensate employees, maximize employee engagement and encourage behaviours that lead to organisational success.
Recognition is about acknowledgement and appreciation for a contribution, improvement, innovation, or excellence—a message to employees that they are valued. The act of recognizing an employee affirms the values and spirit underlying the achievement. It’s also about reinforcing desired behaviors and increasing their occurrence. Attitude and performance are closely linked; the appropriate recognition at the appropriate moment will create a positive attitude that, in turn, will lead to improved performance.
 Reward is the direct delivery of money or something of financial value. In contrast to recognition ,reward should punctuate appropriate achievements and serve as manifestations of ongoing recognition. While recognition is an intangible expression of worth, rewards are concrete expressions of appreciation that are meaningful to the receiver. Recognition is always powerful, but reward without recognition is weak. Typical rewards are pay promotional increases, bonuses, benefits, company cars, profit sharing and trips.

Recognition and rewards can be formal and informal. Informal recognition, meaning, spontaneous or immediate—simple thank you’s or expressions for a job well done.  It indicates a culture or atmosphere that acknowledges good behavior when it happens. Informal recognition is a critical component in human nature and the social structure—it’s a major motivator and results in people feeling good about themselves and their achievements. This should be carried over into the workplace, as a sign of respect and acknowledgement.