Reward vs Recognition
Difference between reward and recognition is that the reward is receiving something in return for the individual performances while recognition is a token of appreciation given to an individual for his performance or an achievement. Both these methods can be used as motivational techniques that are frequently used by the managers in the organizations. This article explains these two concepts and analyses the difference between reward and recognition.
What is a Reward?
Reward can be considered as something that is given in return in order to appreciate the service of an individual. In an organizational context, rewards are given by the management for the best performing employees in order to appreciate their performances or achievements. Therefore, rewards can be used as a motivational tool. Rewarding employees create competition among them. So all of them work hard by providing their maximum contribution to the organization .
These rewards can be categorized into two types of rewards; financial rewards and non-financial rewards. Financial rewards are the rewards with monetary values such as salary increments, bonuses, incentives, etc. Non-financial rewards are the rewards that do not have a monetary value such as promotions, job enrichment, etc.
In most of the organizations, at the end of the each financial year or the mid of the year, employees’ performances are being evaluated by the management. Then, the best performers are rewarded with financial rewards as well as non-financial rewards in order to motivate them by appreciating their performances.
What is a Recognition?
Recognition can be identified as a positive feedback given to an individual to appreciate his/her performance or achievements. It is a kind of a non-financial reward. Employees like to be recognized by their superiors for their best performances and they would be motivated to work for the company by giving their maximum contribution towards the company.
Recognition can be offered in many forms, for e.g ., by thanking, praising, respecting, providing career development opportunities, empowering, providing a safe and healthy work environment and offering awards. With the use of these techniques, employees would feel that they are being valued and appreciated by the company and would be happy to work for the company. In some organizations, they carry out various recognition programs like selecting the employee of the month, considering the performances of the employees during the month.
What is the difference between Reward and Recognition?
• A reward is something that is gained in exchange for a particular contribution while recognition is more like acknowledgement or appreciation provided for a particular action.
• Reward is tangible and recognition is intangible.
• Reward is always transactional while recognition is relational.
• Reward is transferable while recognition is non-transferable.
• Reward is conditional while the recognition is unconditional.
• Reward is outcome driven while the recognition is focused on the behaviours.
• Reward is economical while recognition is personal.