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How do Rewards and Recognition Motivate Employees

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Employees who are acknowledged tend to have stronger self-esteem, more confidence, are more willing to take on new tasks, and are keener to be inventive, according to research. A key instrument that management may use to direct employee motivation in desirable directions is the reward system.

Programs that reward and recognise employees for their contributions to the company’s objectives and for their efforts are essential for a high-performing workplace, contented workers, and lower employee turnover.

Rewards and Recognition meaning

I. Employee Rewards

Employee reward systems are plans put in place by a business to recognise achievement and inspire workers on an individual and/or collective level. They may be financial in character or have another cost to the organisation, but they are often thought of apart from wages.

Companies utilise incentives and acknowledgments to encourage staff and show them how much they are valued. When a person performs the tasks outlined in their job description and achieves their goals, they may receive additional money as a reward and form of acknowledgment.

II. Employee Recognition

Employee recognition is the act of praising a company’s workforce for exceptional work. Employee recognition in the workplace primarily aims to encourage certain behaviours, practises, or actions that lead to improved performance and fruitful commercial outcomes.

Being well regarded by their co-workers is one of the main motivators for employees. The greatest method to gain this respect is to be recognised for one’s abilities in their field.

III. Rewards and Recognition activities

Nowadays, recognising and rewarding employees is an essential part of running a successful company. Its distinctive method of elevating the value of your employees’ accomplishments is what made it well-liked. And HR executives are working hard to further exploit it with innovative concepts for incentives and recognition.

The idea of bestowing honours and prizes has been around for a very long time. An individual feels delighted when their nice deed is recognised. This motivates them to keep improving and ties them to bigger objectives.

According to studies, incentives and recognition have a wide range of advantageous impacts. And it is evolving into a crucial component of the corporate cultures of different firms.

The following are few activities that can be performed for rewarding and recognizing employees:

IV. Gift of Gratitude

This is presumably one of the most often advised ways to express your appreciation to your staff. Everyone wants to feel appreciated, and a vocal or handwritten “Thank You” has the greatest impact of any expression of gratitude.

Therefore, be sure to express your gratitude to your worthy staff.

V. Sing Happy Birthday 

Even while it is better than nothing, sending a generic email to your staff members on their birthdays is insufficient. On their unique day, you must make them feel special. Additionally, a cake and the traditional “happy birthday to you” song never fail to make your staff members feel appreciated. If you are unable to do so due to your large staff, at the very least, try to send a handwritten message.

Celebrate personal milestones with your staff, such as wedding anniversaries, work anniversaries, and promotions.

VI. Peer to Peer Recognition

Peer recognition has a special significance. Peers occasionally have greater knowledge of their co-workers’ work than supervisors or those in control do. They are the ones that collaborate with one another at work, and their interactions are less intimate. They frequently see features that bosses miss.

Healthy peer-to-peer recognition is essential to the success of your firm. By conducting polls among the staff and identifying the ones who received the most votes, it may be completed swiftly.

VII. Include Your Staff in a Short Film

Most individuals enjoy watching themselves on screens. Make a little film that lasts 5 to 10 minutes, and make your staff the stars. Inquire about their opinions and loves and dislikes regarding the business.

If you look at the amount of volunteer participants, you might be astonished. These actions increase your workers’ sense of belonging to and “participation in” the business.

Of course, after the film is finished, make sure to share it with everyone.

VIII. The Famous Moment for the Wall of Fame

An excellent icing on the employee appreciation cake would be to have a wall of fame in the office where the successes are showcased for the entire crew. It will increase the value and notoriety of the appreciation.

Digital screens with live feeds on recognition, birthdays, anniversaries, etc. can also be installed in strategic office places.

Why reward and recognition are important 

Recognizing and appreciating your employees’ accomplishments is crucial. Being a competent team leader and mentor to your team members is not an easy feat. Employee engagement and loyalty to their employer increase when they find that their labour is recognised. Their relationship with your company is boos.

Employee appreciation, which may take many different forms, is fundamentally what you do to express your gratitude for the job that your workers perform daily. For them to feel appreciated at work, employees require that acknowledgment.

Employees are more engaged, motivated, and ready to go above and beyond for their employer when they feel appreciated. Organizations with formal recognition programmes see 31% lower voluntary turnover than those without such initiatives. They also have a 12x higher likelihood of successful business outcomes. Employee appreciation must be given top priority by executives if they wish to promote employee, team, and corporate success.

It may be demoralising and lonely to go through your days at work without receiving the right acknowledgment. However, even a tiny gesture of appreciation, such as a pat on the back or a kind word, may go a far way with your staff members and workplace friction is decreased.


A system of employee incentives and recognition assures productivity and engagement in a business in both extrinsic and intrinsic ways. Employee appreciation used to be celebrated just upon receiving the production or after a certain tenure.

Also Read: How To Re-Engage Unhappy Employees?

Today, however, the emphasis is primarily on performance. A joyful and engaged workplace culture is created when people are appreciated for their efforts and hard work. There are innumerable methods to activate the recognition mechanism, but only one workplace culture is special—your office culture.

While saying “Thank You” is polite, it is insufficient. Only an employer that supports recognising top achievers can conduct effective employee incentives and recognition programmes.

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