Employee Rewards vs. Employee Recognition

In today’s competitive job market, employee retention is a top priority for organizations seeking to maintain a strong, engaged workforce. While salary and benefits are important, employee appreciation is often the deciding factor in whether employees stay or leave. Two key elements of any effective retention strategy are rewards and recognition. Though these terms are often used interchangeably, they play different roles in making employees feel valued and appreciated.

What's the Difference Between Rewards and Recognition?

Rewards are often tangible and structured, designed to be given when employees meet or exceed specific expectations or performance targets. These incentives typically have a clear, predefined value, and employees know what to expect when they reach a certain milestone. They are usually linked to measurable outcomes, such as completing a project, achieving sales targets, or meeting personal or team goals. The goal of rewards is to reinforce desired behaviors by offering something valuable in return.

 

Recognition, on the other hand, is less about tangible items and more about appreciating the efforts, contributions, and dedication that employees demonstrate in their day-to-day work. It's often spontaneous and personal, focusing on the individual’s overall impact rather than specific metrics. Recognition is about making employees feel seen and valued for their work, regardless of whether they hit a specific target or milestone. It typically fosters emotional connections, acknowledging the intrinsic value employees bring to the organization.

 

 

Examples of Employee Rewards

Since employee 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.
  
  

• 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. At BerniePortal, managers and team members often give each other shout-outs, what we like to call “High-4s.”
• 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.
  
  

How to Create a Culture of Employee Appreciation

Creating a culture of appreciation is not just about giving occasional rewards or recognition; it’s about embedding these practices into your daily operations so that employees consistently feel valued for their contributions. One key way to do this is by offering regular feedback—both positive and constructive. Rather than waiting for annual reviews, providing ongoing communication ensures that employees know their efforts are being acknowledged. 

With BerniePortal's Performance Management feature, managers can easily document and track feedback, ensuring that employees receive consistent recognition and constructive guidance, all in one place.

Another important aspect is personalizing recognition, tailoring it to the individual preferences of your team. While some employees may appreciate public acknowledgment, others may prefer a more private thank-you note. Understanding these preferences makes your appreciation efforts more impactful. Encouraging peer recognition is also a powerful way to foster a supportive work environment, as it gives employees the opportunity to celebrate each other’s contributions.

Finally, making appreciation a habit, rather than something reserved for big milestones, can create an atmosphere where employees feel valued every day. It’s the small moments of appreciation that make the biggest impact. 

For more tips on employee retention, check out our HR Party of One video below!

Additional Resources

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• BernieU—free online HR courses, approved for SHRM and HRCI recertification credit
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• Resource Library—essential guides covering a comprehensive list of HR topics
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• Community—the HR Party of One Community forum, a place devoted to HR professionals to ask questions, learn more, and help others