One of the big conundrums of modern business is the semantical difference in the words, rewards, and recognition. First of all, it is important to recognize that both these things are very important. They both work together in helping retain high-performance employees and also attract other top talents.
In order to properly understand the differences between these two terms, the first thing that needs to be done is the decoupling of these two terms. Also, the differences and the benefits of these two terms need to be properly listed. The aim of this particular article is exactly that.
Rewards are Generally Tangible
Categories of rewards will usually fall under the tangible label. On the other hand, recognition will most often be intangible. When we say rewards are tangible, we are implying that they can be felt, touched, and experienced. Also, rewards will typically be of a certain amount. Conversely, recognition is generally invisible in nature but it is absolutely priceless with regards to value.
One important thing to understand is that employees can be recognized without having received a reward. However, make sure that you do not ever hand out rewards without recognition.
Rewards are Mostly Transactional
Here’s a very simple and well-observed truth, rewards are typically transactional and recognition is completely relational. Rewards are only given out in the context of, “if you can perform X, then you will get Y as a reward.” On the other hand, recognition has a whole lot more to do with a relational exchange that happens between two individuals. It is true that rewards can really help in attracting top talents for your company but in order to retain these top performers, recognition is an absolute must.
Rewards are Generally Consumed
Speaking very broadly, rewards are generally consumed while recognition is something that is of a more experienced nature. Generally, when someone receives an award, it is normally consumed or, at the very least, spent. Alternatively, when a person gets recognition, the memory of the experience lasts a very long time. This is because it is a snapshot of the past when the employee was performing exceptionally well. It is only with a very careful balance of the two things by which you can make use of the unique differences and their applications as well.
Rewards can be Transferred
Rewards can be transferred from one person to another but the same cannot be said of recognition. Also, rewards are typically temporary by their very nature and they can be passed around. While on the other hand, recognition is something that you will not be able to transfer.
Recognition is permanent and hence, you cannot take it from one individual and just give it to someone else. The best course of action would be to know how to strike a proper balance between both these things, rewards, and recognitions. Focus on recognition and then pair it up with a reward that is tangible.
Rewards are typically conditional
The basic gist is that rewards are conditional, which means that it is completely unlike recognition that is unconditional. Rewards will typically be dependent on particular conditions and terms and will be followed by consequences. Recognition is a lot more independent than rewards. Also, the key thing to remember is that it is not the outcome of any particular specified action or even behavior.
Rewards are typically expected
Generally, rewards do not come as a surprise to people. If someone is to receive one, they will most likely be expecting it. Recognition, on the other hand, always comes as a surprise. When someone performs really well, they will more or less have expectations that they will be given a reward pretty soon.
When it comes to recognition, however, recipients usually have no clue when they are about to get one. An important thing to keep in mind is that you should never deprive anyone of rewards when they are deserving of one. The best way to go about things is to be spontaneous with regards to your attitude and also to appreciate people as often as possible.
Rewards have monetary value
Rewards normally are economical, they have some sort of monetary value. Recognition is completely emotional. Within the entirety of the economy of consumption, rewards can be very discreet and also a surgically targeted use of the resources you have.
On the other hand, recognition is a lot more emotional and psychological in nature. It is absolutely vital to understand that while performances are key, ultimately, it is a feeling that will rule without a shadow of a doubt.
So, as you can see, both these terms are pretty unique in their nature. They vary vastly when it comes to using them and applying them in a professional setting. It is important to understand that both work very well when it comes to employee morale and motivation. So, the best way to go about things would be to combine both of them and utilize each of them properly.
