by Chris Banescu –
Companies and organizations must reward and recognize their employees in order to succeed and insure that they continue to be engaged, motivated, happy, and productive.
It is not just rewards or just recognition. It is not an either/or proposition. It’s also not rewards versus recognition. One does not have priority over the other.
It is rewards AND recognition. Why? Because it’s ethical, fair, and right, and it works!
Both are required in order to justly compensate, effectively lead, capitalistically reward, and ethically motivate and recognize your employees. Anything less will never be sufficient to attract and retain the talent necessary to insure the long-term success, profitability, and prosperity of any enterprise.
“Research from human resources firm Bersin & Associates suggests that companies that excel at employee recognition are on average 12 times more likely than their peers to generate strong business results, including higher profitability and better market leadership positions.” – Chad Brooks
“In addition, in organizations where recognition occurs, employee engagement, productivity and customer service are about 14 percent better than in companies that do not reward and recognize employees well.” – Chad Brooks
“To motivate behavior, the organization needs to provide an effective reward system. A reward strategy is a declaration of intent that defines what the organization wants to do in the longer term to develop and implement reward policies, practices and processes that will further the achievement of its business goals and meet the needs of the stakeholders (Armstrong, 2006). … A reward strategy should enhance commitment and engagement and provide more opportunities for the contributions of people to be valued and recognized.” – International Journal of Education and Research (Jan. 2014)
“Used correctly, employee recognition is an important talent management tool that can help guide employee performance, maintain increased employee engagement, reduce employee turnover and ultimately drive business performance.” – Stacia Sherman Garr