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Success factors for Employee Recognition and Rewards Program

by Team Advantage Club

A robust recognition and rewards program is the foundation of organizational employee engagement. R&R programs have become an inseparable part of great workplaces to meet changing employee needs. The more beneficial a program is, the more likely an employee will go above and beyond to perform well and contribute to the company’s success.


Employee recognition and rewards program involve much more than just giving out occasional gifts or cash payments. Your workplace could change thanks to these programs, becoming more collaborative and productive. However, numerous fallacies surround discussions of reward and recognition systems. These may result in errors or even inertia. Therefore, don’t let misunderstanding prevent you from developing a rewarding and fair employee appreciation program.

Keep reading for,

  • Truth of recognition and rewards program
  • Common mistakes in recognition and rewards programs
  • Essentials for a recognition and rewards program

Truth of Recognition and Rewards Program

What are the myths around employee recognition and rewards program?

Some companies have misconceptions regarding the efficiency recognition and rewards program. Take a look at the seven most common myths:

  1. Acknowledgment is pricey
  2. The process of recognition takes time
  3. Rewarding staff demotivates them
  4. Only top achievers receive recognition
  5. Those who do not receive bonuses are eligible for recognition
  6. Compensation is a form of recognition
  7. Recognition has become stale

Most Common Myths of R&R programs

Acknowledgment is pricey

There is a concern among company executives about the cost involved in R&R programs. While incentive programs necessitate a significant cost, doling out recognition and appreciation for an employee’s dedication does not cost anything. Rather, it has a long-term positive impact on their morale.

The process of recognition takes time

The majority of businesses handle incentives manually. If your company lacks a formal employee recognition program, the initial decisions about how a company will approach recognition and the methods it will employ can take time. Once a plan has been developed and implemented, using the system requires very little time and effort.

Rewarding staff demotivates them

Recognizing your employees’ decades of service with an irrelevant, worthless gift is counterproductive and demotivating. It does not leave the recipient feeling inspired or appreciated. When recognition is thoughtful, appropriate, and well-executed, employees will be motivated and inspired.

Only top achievers receive recognition

Everyone, not just high-performing employees, should be recognized. Most employees want to feel appreciated regularly and require motivation to perform well at work. According to a survey, employees who do not feel appreciated and valued are twice as likely to seek another job.

Those who do not receive bonuses are eligible for recognition

Many businesses believe that employee recognition programs are only meant for employees who do not receive bonuses or raises. However, limiting who receives and does not receive recognition defeats the purpose of the recognition program.

All employees require motivation in the form of appreciation and rewards. Peer-to-peer recognition is an excellent way for everyone to recognize each other and foster a culture of appreciation and collaboration.

Compensation is a form of recognition

Cash-based reward amounts are frequently used to pay pending bills. They do not provide a memorable experience. The idea that money is the most desired reward is long gone. Simple gestures like a personalized message or social recognition leave a lasting impression on employees and encourage them to go above and beyond their primary duties.

Recognition has become stale

Some may consider traditional awards such as “Employee of the Month” and service anniversary awards outdated. However, it is the way they are organized. Commemorating special occasions and expressing gratitude and appreciation for someone’s contributions is always welcome. Employee recognition and rewards programs provide excellent ways to increase employee engagement.

Common mistakes in recognition and reward programs

Most commonly, programs err at:

Ignoring the Employee

Recognizing and rewarding top performers can boost workplace morale and motivate other employees to work harder. However, it may demoralize those employees who work equally hard but fail to produce results. As a result, such employees’ overall productivity suffers. Furthermore, in the future, they may exert even less effort. Likewise, those who are left out may feel isolated from the rest of the workforce, leading to factions among colleagues.

Forgetting the bottom line

If you do not set clear objectives for your employees to be recognized and rewarded, the R&R process will be complex. Employees will need clarification about what qualifies as appreciable performance or actions. Set clear goals so employees have a crystal-clear idea and guidance for improving performance.

Missing criteria for eligibility

Employee recognition programs that only promote high achievements tend to cast down other qualities in employees because they indicate that other attributes are unimportant. An ideal employee possesses a high work ethic, integrity, punctuality, and excellent communication skills and hence should be recognized and rewarded for all these qualities.

No nomination system

Since without a nomination system, a recognition program may give your employees the impression that the program is unfair. It is essential to have a structured program that treats all employees fairly and rewards them for their commitment.

Hoping one size fits all

An employee recognition idea that makes one employee happy may not get appreciation from another. The same is the case with companies. A program that works for one may not be feasible for another. Employee recognition programs that provide personalized appreciation are more meaningful. For this reason, go above and beyond to learn what benefits your employees like and dislike.

Essentials for a recognition and reward program

Ensure rewards are meaningful for employees

Firstly, the primary goal of employee rewards and recognition programs is to make employees feel engaged and valued. So, conduct preliminary research to determine what makes your employees happy.

The employee recognition committee comprising employees can get together and talk about the details of the R&R program. As employees have a say in the process, the program can be customizable to their wants and needs, increasing its chances of success.

Alignment to business and HR objectives 

Secondly, consider what your organization hopes to achieve with the program. If you know your company’s specific goal, you can design a targeted employee recognition program. Some businesses create a plan to

  • Improve productivity
  • Recruit and keep top talent
  • Enhance daily performance and innovation

Brainstorm over your company goals to establish a well-researched plan that boosts workplace morale and motivation while also meeting your organization’s goals.

Clear communication

Communicate the eligibility criterion in detail to your employees. Elaborate if it includes all employees or only the permanent employees, any minimum length of service that makes one eligible, or an employee can receive a reward more than once.

Ensure you clearly define the performance and accomplishments that can bring rewards and recognition to an employee.

Determine the frequency of reward, weekly, monthly, or yearly, depending on your funds and the number of participating employees.

Set a fair process

Finally, transparency is essential, and employees must understand exactly what they must aim for to receive appreciation. Your performance indicators must be to the point, reasonable, measurable, challenging, and achievable.

Moreover, set a clear process for selecting or nominating the candidate. Determine who can choose or nominate the eligible Employee, who will ascertain the winner, and what the reward for that particular achievement or work would be.

Ongoing review process

Feedback is essential, and it is critical to understand how employees are receiving it and how your reward program is performing on an ongoing basis.

Giving out rewards that do not inspire or motivate employees can be in fact counterproductive and lead to demotivation. Without ongoing evaluation, your reward program may have a negative impact, so keeping a close eye on its performance is critical.

A structured and automated program is easier to handle and more effective in incentivizing and motivating employees. Consequently, your company can reap long-term benefits with the right Employee Recognition and Rewards program.

Advantage Club provides a cloud-based employee reward system that complements your R&R program. Additionally, It includes customizable features with personalization to meet the needs of your global workforce and organization.


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