The Dynamics of Employee Recognition and Reward

Employee recognition programs often get confused with incentive programs. Both reward  behavior.  However, while incentive programs promote a financial or physical benefit before the behavior has been demonstrated, recognition programs elicit a psychological benefit after a specific behavior has occurred.

Programs that reward employees for exemplifying company values generally are the focus of recognition programs.  These values often include productivity, quality, education and training, safety. and the degree of employee engagement, among many others. 

At the age of 15, I got a summer job with a Fortune 500 scientific supply company pulling orders in the warehouse.  During that summer, in an attempt to increase the sales force’s product knowledge, the company instituted a sales employee education program that included weekly product knowledge tests.  While this program was directed at the sales employees, I asked to be allowed to take the test.  I consistently scored the highest on each test. 

While I received tangible rewards for my high scores, it was the recognition I received that engaged me to perform my fairly mindless warehouse job at an even greater level.  I was also rewarded with a summer job whenever I wanted it.  After college graduation, I ended up working for this company for over 10 years in various positions.  I was regularly recognized (and tangibly rewarded) for my high level of performance.  Clearly, in the early years and continuing throughout my career, it was the recognition that drove my behavior. 

Many organizations have recognized the competitive edge achieved by more effective recognition of non-sales employees. Recent studies by the Forum for People Performance Management and Measurement, affiliated with the Department of Integrated Marketing Communications of the Medill School, have found a direct link between engaged workers and satisfied customers, and between satisfied customers and profitability.