What’s the Difference Between Rewards and Recognition?

Rewards are tangible perks given to employees, such as gift cards, extra time off, or trips. They are in addition to an employee’s salary and benefits. Recognition, on the other hand, involves praising an employee’s accomplishments through verbal and nonverbal communications, such as congratulatory emails or public acknowledgments.

In today's competitive job market, understanding the difference between rewards and recognition is essential for effective employee retention strategies.

Why are Rewards and Recognition Important?

Many organizations are feeling the repercussions of The Great Resignation and are looking for ways to make their employees feel valued. While benefits like health insurance remain the most attractive for candidates during recruitment efforts, rewards and recognition are instrumental in keeping current employees engaged and motivated. According to the Journal of Applied Behavioral Science, actions that demonstrate appreciation and affirmation in a work environment can significantly boost employee engagement and performance.

Engaged employees are often the most motivated and produce higher-quality work. Moreover, turnover is costly—organizations can save time, money, and stress by retaining high-performing employees. Employees want to feel recognized for their hard work and contributions. Consistently incorporating rewards and recognition into your organization’s retention strategy can have a substantial payoff, making employees feel appreciated and valued.

What Are Examples of Rewards and Recognition?

Examples of Rewards

Since rewards are usually fixed, employees typically know what to expect when they accomplish specific goals. Here are some examples of rewards:

• Monetary Rewards: Often, monetary rewards mean gift cards. These could be specific gift cards to a team member’s favorite business or more generic VISA or American Express gift cards.
• Food and Treats: Food and treats are a common way for organizations to show appreciation. Options include office snacks, catered lunches, or company dinner parties.
• Trips: Some organizations go further by providing all-expense-paid trips for their employees. This could be a company-wide trip or a special reward for an individual employee for outstanding performance.
• Extra Time Off: Rewarding employees with paid time off is a great way to acknowledge their hard work. Time off allows employees to recharge their motivation after a busy period. You can utilize BerniePortal’s PTO feature to document and track any PTO rewarded to your employees.

Examples of Recognition

Recognition is often more frequent, less expensive, and less formal. Here are some examples of recognition:

• Public Congratulation: Congratulating an employee during a company meeting for accomplishing a task or overcoming a work obstacle can make the employee feel valued by the organization.
• Personal Notes: An email or note applauding an employee’s efforts is a personal gesture that can make them feel validated and valued.
• Social Media or Internal Chat Posts: Posting recognition on company social media or internal chat channels is an easy and effective way to boost morale among team members, especially if your team is working remotely. At BerniePortal, managers and team members often give each other shout-outs, what we like to call “High-4s”, via our internal messaging system. 

BerniePortal’s Performance Management feature creates a digital trail of conversations you have with your reportees. This feature is a great place to document accomplishments and give employees the recognition they deserve.

Additional Resources

You can stay informed, educated, and up to date with important HR topics using BerniePortal’s comprehensive resources:

• BernieU—free online HR courses, approved for SHRM and HRCI recertification credit
• BerniePortal Blog—a one-stop shop for HR industry news
• HR Glossary—featuring the most common HR terms, acronyms, and compliance
• Resource Library—essential guides covering a comprehensive list of HR topics
• HR Party of One—our popular YouTube series and podcast, covering emerging HR trends and enduring HR topics
• Community—the HR Party of One Community forum, a place devoted to HR professionals to ask questions, learn more, and help others