Organizations believe that most employees show up with ample motivation to perform well on day one of their jobs.  If so, then the use of rewards and recognition confirms their behavior. The organization is saying, “Your performance has provided value.” 

Through rewards and recognition, the organization demonstrates appreciation in meaningful and tangible ways.  They also shape the behavior and performance of others as they observe the explicit signals of organizational values.

Rewards and recognition do not have to be complicated, but they do need to be thoughtful and aligned with the value produced by people for the organization.

Types of recognition

Based on our research, we categorize recognition into three categories:

• Negative (also called consequences) : fines for violations of safety practices, reprimands for unacceptable behavior, and termination for cause

• Sustain or satisfy: base pay, fairness in compensation, and fairness in work environment

• Improve: bonuses and benefits as a result of performance.

Are relevant forms of recognition used to reinforce high performance (based on results and not behavior alone)?

Motivators versus satisfiers

Part of Frederick Hertzberg’s research in workplace motivation involved asking people to describe their most satisfying work experience.  From the responses he received, Hertzberg identified several motivators. 

Role of clear expectations:  Rewards, recognition, and incentives are most effective when closely entwined with clear expectations and feedback.  If we hope to shape behavior and by extension, improve performance, the linkages between performance and reward must be clear. 

Recall the bumbling character of Clark Griswald in the 1989 movie, Christmas Vacation?  Chevy Chase opens an envelope that contains his annual Christmas bonus, having just proclaimed that if it’s what he thinks it is, he is putting in a new family swimming pool.  To his dismay, his envelope contains a membership in the “Jelly of the Month Club.”

Timeliness of recognition: As is the case with feedback, you should also be concerned with frequency and timeliness of recognition and rewards. Good intentions often can go awry. For instance, the federal government has a program for “on-the-spot” cash awards.  The cynicism among some employees is that the $100 show up weeks after the proclamation, and they have actually had a negative impact on a person’s take home pay (if they had been on the fringe of the next tax bracket). 

Culturally relevant recognition:  We know of a variety of types of recognition and celebration rewards that are treasured in some organizations, but would be absurd in others.  For example, YUM! Brands has a book for internal use with all kinds of examples of low cost or no cost recognition, including having a group of co-workers march over to a recognized person’s cubical all playing kazoos.

It’s important to note that not every motivating factor must be present to create job satisfaction or increase employee engagement. Rather, individual workers find their jobs motivating when one or more factors are present, relevant, and aligned to their own values:, including

• achievement

• recognition

• responsibility

• the work itself

• advancement

• personal growth.

Bottom line: Rewards and incentives should never be provided in an arbitrary manner or in a way that rewards effort alone, but rather in a way that is aligned with the value produced for the organization by people.

For more on how to shift the performance curve, check out Al’s previous blog article or browse the full series.