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Why are rewards and recognition important?

Monetary and non-monetary rewards

Rewards and recognition in a remote work environment

Tips to determine a rewards and recognition program

What are ‌rewards and recognition

Employee recognition describes an employer’s acknowledgment of an employee’s exemplary performance. Rewards are offered to show appreciation for employee performance, and can be given in monetary or non-monetary methods.

Employee rewards and recognition program is a structured method of recognizing employees’ efforts, helping to improve job satisfaction and performance. 

Why are rewards and recognition important?

Incorporating a rewards and recognition platform benefits both employee and employer, acknowledging their great work. 

Consider the following benefits of employee recognition:

  • An employee retention strategy helps keep top talent at the company
  • Encourage high performance by rewarding good work
  • Increase employee engagement with a reward system and incentives
  • Create a positive company culture by motivating employees to work hard
  • Encourage friendly competition among team members in the work environment
  • Reduce stress and absenteeism
  • Better manage remote employees

Monetary and non-monetary rewards

An employee recognition program may include monetary and non-monetary rewards. Monetary rewards have a definitive monetary value, while non-monetary rewards are non-cash perks, benefits and recognition.

Common monetary rewards include:

  • Bonuses for contractors and employees
  • Treats, gifts and gift cards
  • Paid events
  • Additional time off
  • Position promotion
  • Fringe benefits such as retirement benefits, health insurance

Common non-monetary rewards and types of recognition include;

  • Hand-written notes (such as a sticky note) for employees who go the extra mile 
  • Public praise or a social media shout-out for hard work 
  • Performance-based awards for top performers
  • Celebrating work anniversaries, milestones and birthdays
  • Showcasing great performance by honoring the best employee of the month on a wall of fame
  • Spending one-on-one time with the CEO and other organizational leaders

Rewards and recognition in a remote work environment

Working with remote employees introduces unique challenges. Remote employees are at risk of feeling isolated and unappreciated, and employee rewards are not as straightforward.

An effective rewards program can help boost employee retention, improve productivity and attract talent. 

In addition to the above reward suggestions, the following employee recognition ideas can be offered to remote employees;

  • Varied, flexible schedule for improved work-life balance
  • Investment in professional development
  • Encourage peer-to-peer recognition online, such as through Slack
  • Write a LinkedIn recommendation
  • Host virtual award ceremonies

Tips to determine a rewards and recognition program

When human resources consider ways to show employee appreciation, there are a few tips to keep in mind. 

The following suggestions ensure that the program has a positive impact on the employer's well-being while maximizing the business's bottom line.

  • Understand the different types of recognition and reward programs
  • Identify the goals of the rewards program
  • Consider the company values when determining the standard of work
  • Prioritize strategic implementation
  • Get employees onboard
  • Measure the impact of the rewards program on a regular basis
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