What are rewards and recognition?
Rewards and recognition are a system of appreciating and rewarding employees for their performance. The presence of this system signifies that the workplace culture understands the importance of acknowledging and rewarding employees’ efforts in a fair and timely manner
Types of rewards and recognition
The different types of rewards that can be given to employees are:
- Variable pay
- Stock options
- Written or verbal praise
Importance of rewards and recognition in the workplace?
They are important because of the following reasons:
Increase in Productivity
Rewards and recognition make employees feel valued as a result of which their productivity increases manifolds. Employee engagement also increases as a result of fair and timely appreciation.
Encourages career progression
When employees are appreciated, they feel motivated to do and learn more. This helps them learn new skills and gain knowledge that eventually helps them in career advancement.
Increases employee satisfaction and morale
A culture that fosters employee appreciation attracts and retains talent. Employees feel satisfied with working for a company that recognizes their efforts and rewards them. It boosts their morale to work even harder.
Strengthens employer brand
When employees are appreciated, they share and discuss with peers from other companies. This reflects well on the company’s reputation. The company then gets known for its best HR practices and how it values its employees.