Rewards Or Recognition?

Which of these produces the greatest long-term benefit: rewards or recognition? To answer this question, let’s explore each in more detail.

Rewards

Let’s approach the value of rewards from the perspective of your personal experience.

Many of us participate in rewards programs at restaurants we enjoy, stores we regularly visit and various other places of business. Let’s assume for a moment that you’re not a price buyer, that price isn’t the primary factor in your buying decision. Do you visit these businesses more frequently because of the reward…or do you go only as often as you desire and consider the reward as icing on the cake?

If you’re an employee, does a reward:

• Motivate you to perform at a higher level?
• Motivate you to do things you don’t enjoy? If so, for how long?
• Enable you to enjoy your job more?
• Add lasting satisfaction to your job? Or does the satisfaction of the reward wane quickly?

If you’re an employer, does your reward program:

• Produce ever-increasing levels of performance? Or does it produce a short-term boost with a quick return to previous performance levels?
• Improve morale or develop resentment among your employees?
• Encourage only top performers while demoralizing everyday solid performers?
• Prevent top performers from leaving?

Let’s see whether your answers change when we pose similar questions about recognition.

Recognition

Do you frequent a business more often when they greet you warmly and remember your name or when a less warm greeting is accompanied by a reward?

If you’re an employee who is regularly recognized for doing a good job, are you:

• Motivated to perform at higher levels?
• More willing to do tasks you don’t enjoy?
• Feeling valued and valuable…thus, enjoying your job more?
• More likely to stay with your employer even though other attractive opportunities exist?

If you an employer who regularly recognizes your employees for doing a good job, do your employees:

• Produce at ever-increasing level levels of performance?
• Keep morale high by collaborating well and supporting one another during challenging times?
• Encourage fellow workers at all levels of the organization…recognizing that each is a vital part of your organization’s success?
• Including top talent, stay even when they receive other attractive offers?

Independent source

Now that you’ve examined your experiences, let’s see how they stack up against the results obtained by an independent study. Each year Fortune Magazine lists the best 100 companies to work for and reports on why employees have rated their companies in the top 100.

One element that shows up each year is recognition. Employees enjoy being recognized for doing a good job. That’s not an ego thing. They’re not looking for an ego boost. They’re not seeking flattery; indeed, most would resent flattery as being disingenuous, They enjoy feeling valued and valuable. Indeed, many employees report that they stay even though they could make more money elsewhere. That’s how important recognition is and why it far surpasses what rewards produce.

Takeaways

If you’re looking for ways to improve:

• Operating results
• Customer satisfaction
• Employee morale
• Team spirit
• Top talent retention

develop a program that regularly recognizes your employees for the fine work they do.

Here’s one of the most creative approaches I’ve seen.

At the entrance to the department, the employer posted a huge sign listing employees who attained their “New personal best this week.” The beauty of this approach that every employee has the opportunity to be recognized…not just the top performers.

The fact that the recognition is public…able to be seen by all who enter the department…adds to the value of the recognition. Recognition, along with other key elements of My Making The EXCEPTIONAL Normal program, produce ever-increasing performance…year in and year out.

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If you’d like the leaders in your organization to learn how to use the numbers more effectively and dramatically improve the productivity of your workforce, contact me to learn more about these resources:

Resources

Making the EXCEPTIONAL Normal program helps you identify and nurture emerging leaders who elevate all around them to higher levels of performance and greater job enjoyment.

Financial Awareness & Strategy program where employees learn to identify opportunities to improve financial results and prioritize these opportunities on the basis of which produces the greatest impact with the least effort. Greater financial awareness = Better decisions.