As you can imagine, the question of recognition VS reward is one that crops up in conversation, emails, meetings and pitches over here at bountiXP HQ quite regularly – especially in times of widespread uncertainty. The topic also happens to be rather fascinating.
So, first off, there is the semantic difference. On a purely linguistic level, the definitions are:
Reward (def): A thing given in recognition of service, effort, or achievement, or the action of giving something to (someone) in recognition of their services, efforts, or achievements.
Recognition (def): Recognition is the timely, informal or formal acknowledgement of a person’s behaviour or effort.
The key takeout here is that a reward can be a form of recognition when it’s presented in the right way, but that recognition does not necessarily have to be tied to a reward to be effective. So while the two toys are in the same sandpit, the game you play with them are slightly different.
The other big difference between recognition vs reward lies in the impact it has on the human brain. Rewards are transactional and make us feel good (thanks to neurotransmitters like dopamine and endorphins), while recognition is relational and makes us feel connected to and valued by our tribe.
The latter plays perfectly into the SCARF model for collaboration, which states that in order to work well with others, five primitive social domains in our brain need to be activated. This includes:
- Status – how important we feel in relation to others in our group.
- Certainty – how secure we feel in our group and how well we are able to predict the future.
- Autonomy – the sense of control we feel over events that have an impact on us.
- Relatedness – how safe and accepted we feel within our group.
- Fairness – whether we perceive the exchanges between members of our group to be on equal footing.
Read more: Digital employee recognition has never been easier than with bountiXP
As such, it makes sense that the true magic happens when recognition and reward work in tandem, and this is why your business needs both.
Here are a few things to bear in mind when you tailor an employee engagement initiative that combines the best of both:
1. Recognise and reward the right stuff
In order for a recognition and reward program to benefit your business, it has to be in line with your business objectives and promote the type of behaviour you want to see among your employees. As such, it’s important to decide exactly what you will be recognising and rewarding, and how it will roll out in practical terms.
2. Ensure that it happens in a timely fashion
Both rewards and recognition are most effective when they happen very soon after the positive behaviour or impact is noticed. While a ‘thank you’ or ‘good job’ a week or so after the fact is still a nice gesture, your employees are far more likely to replicate their efforts (or mimic that of their co-workers) if they receive their props in quick succession.
3. Do it frequently!
Ideally, you want to foster a culture of recognition that permeates your entire operation, from the grassroots level all the way up. Managers should recognise managers, peers recognise peers, workers recognise supervisors, etc., etc. After all, regularly voicing your appreciation for someone else’s efforts make you more inclined to notice it in the first place, and also inspires you to improve your own game.
4. Keep it authentic
Cookie-cutter appreciation emails are better than nothing, but it’s always best to present rewards in person, and to tailor recognition messages to the person and action in question.
5. Make it personal
One person’s kick-ass reward is another person’s meh. If you want to bolster recognition by means of a reward, your best option is to present the employee in question with a variety of options from which they can choose their favourite.
6. Be transparent about the process
The process by which rewards are given should be as transparent as possible – everyone should know who is being rewarded for what, and how it ties in with your company’s overall objectives. E.g. “Louise has received a R500 voucher to spend on a reward of her choosing in recognition for the exceptional admin support she provided during our last pitch – her attention to detail really helped us bring the account home.”
7. Get input from your team
The best way to know whether your recognition and reward strategy is working is to get input from your team. Start by asking them what kind of rewards they’d prefer, how it should be rolled out, etc. and then remember to check back in on a regular basis (perhaps by means of a pulse survey) to see if it is still hitting the mark.
8. Rope in the remote team members
This year has changed the way that many companies work, and a fair amount of people who used to be in the office are now likely to contribute their skills from home. Remember to rope them in when it comes to recognition and rewards to keep them motivated alongside the in-house team.
Read more: South Africa and the future of remote working
Now you know. Keep the difference between recognition VS reward in mind when you consider your employee engagement initiatives in the year to come, and reap the benefits of using both to your advantage.
In the meantime, have you checked out our YouTube channel yet? There are some awesome videos on there that offer all sorts of expert insight into the world of future-proof HR – so go have a look.