Rewards and Recognition

Rewards and recognitions are the most effective means for motivating the workforce in an organization so that they work with their best efforts on a continuous basis.

Rewards and recognitions can be of different categories. Many management experts have studied human expectations and what will motivate them in the true sense. Their studies have been presented as various theories as well. For more about the theories, check out our blog posts on motivation theories.

Below are the different categories of rewards and recognitions, that are used:

• Financial – This includes the financial rewards given towards the monthly or hourly pay for the efforts of an employee. This also can include additional overtime pay, different types of bonuses, and monetary gifts given to employees. This is the most basic type of reward for an employee.
• Perks and Fringe Benefits – Employees are also given different fringe benefits such as subsidized canteen food, transportation, higher education opportunities, training, etc. They are also given various perks such as a corner office, a parking space, company-sponsored holidays, company-owned cars, etc. as various perks. Fringe benefits and perks also motivate employees.
• Challenging roles and responsibilities – Assigning higher and more challenging responsibilities to employees gives them a sense of respect and an opportunity for better job satisfaction.
• Affiliations – Making high-performing employees part of task groups, and empowering teams for organizational initiatives provides them a greater sense of belonging.
• Power and Position – Designations and powers are also powerful means to empower an employee.

While we think about rewards and recognition for people, it will be very important to also understand and utilize the various motivation theories which explain what kind of rewards will motivate people. It will be important to understand what will motivate each person and accordingly try to work on them. It will be important to ensure the presence of the minimum hygiene factors and then provide the required motivating factors to the employees. Some of the important motivation theories include Maslow’s hierarchy of needs, Hertzberg’s motivation theory, Vroom’s expectancy theory, McClelland’s theory of needs, and so on.

Conclusion

Rewards and recognition are very important parts of employee motivators and enablers. The right combination of financial and non-financial rewards and recognitions with different types of roles, responsibilities, and affiliations can be used by organizations. Identifying appropriate rewards for each person should be done by understanding their needs. Understanding and putting into use various motivation theories will be necessary for offering effective rewards and recognition for people.