HR Glossary  >   Rewards and Recognition

Rewards and Recognition

Meaning of Recognition

The chief purpose and recognition meaning is to thank the employees for their achievements, effective management and advancements at the workplace. That could be in the shape of handwritten notes, on-the-spot manager applause, or during the meetings through public appreciation.

Another angle can be to acknowledge specialists for mastering the main skills or embodying the company values (apart from meeting the set goals and milestones). Human nature demands the attention of others, this is where RNR can help in giving adequate attention to all the staff members.

Modern teams have a more pronounced diverse nature, probably because they always have been, regardless of the timeframe. Therefore, it becomes very crucial for us to come up with new approaches for stirring the workforce's interest and excitement through individual rewards and recognition programs. In addition, many employees are so engaged that they admit that this occurs in organisations where recognition programmes are promoted based on values such as diversity, equality, inclusion, and belonging.

In the practice of rewards and recognition - RNR full form, the most common forms of leaders' approbation for their employees are in the form of rewards and acknowledgement. Both ways have their uses depending on the purpose of the organisation and its workers. Companies can immensely rely on them to identify how the excellence of the work is valued while at the same time ensuring the happiness and engagement of their workers.

In this article, you will get to know more about rewards and recognition and other details related to it.

Meaning and Definitions

Meaning of Rewards

Most benefits are concrete personal gains like miraculous offerings or some kind of reward. A lot of companies recognize outstanding accomplishments or dole out extra payments in return for reaching targets, succeeding in a certain project, or overcoming an obstacle. Voluntary stocks provide another source of income under the public purse.

Yet, productivity incentives need not be material; they can also fit in the image of thoughtful gifts, additional time for vacations, or greater flexibility at the workplace.

The term intrinsic motivation refers to the motivation that is driven by the internal satisfaction of the person who is motivated. This form of motivation has no boundaries and it originates inside of the person whereas the term extrinsic, on the other hand, refers to recognition and rewards that offer tangible advantages that motivate the workers to keep working above and beyond the company's expectations in order to finally reach their goals.

Selecting the right mix of rewards can be a vital support to satisfy the social and financial safety needs of employees. Paying monetary rewards to candidates is one of the most effective ways to attract and retain them on board.

What is Rewards and Recognition?

But what is rewards and recognition? Recognition systems that are designed to allow for recognition of the actions and contributions of an employee within the organisation are called employee rewards and recognition programmes. As frequently as praise is given on a platform accessed by the organisation's internal personnel.

In addition to posting good comments, the app rewards the user by crediting a score with each praise comment which in turn can be redeemed for prizes. The employee recognition program's purposes are to retain human resources, boost team spirit together with employees, as well as improve their performance.

Engagement, productivity, and retention among workers are the major business metrics that are very susceptible to recognition. Whether it is not-for-profit or big enterprises, everyone can design successful employee recognition and compensation programmes, provided they know how this can be done, and have the right tools for it.

Importance of Rewards and Recognition

If you are thinking about why rewards and recognition is important, then here are a few points that will explain the importance of rewards and recognition.

  • Boost worker engagement. Workers would receive high motivation to accomplish their tasks when they think that their supervisors value their assigned role.
  • Increase employee motivation. An employee may feel the urge to work hard and strive for that recognition or reward which he is aware of his company being with him in his growing up.
  • Teach the individual employees the importance of their specific roles. Acknowledging a staff member's achievement of goals in the public space can lead to an enhanced understanding of how their contributions are valuable for the big-picture communication, mission, or vision of the team or organisation.
  • Increase output. Managers can drive higher performance for both themselves and their teams, as increased individual and team motivation leads to that. By this they can provide performance appraisal to the employees.
  • Reduce the attrition rate of workers. Employees who work in the environment of the employers they can appreciate are unlikely to leave it. Raising the turnover rate of the departmental or corporate staff to a lower level is expected to increase the headhunting and onboarding of new staff.
  • Promote the development of the staffers concerning their careers. Programming for employee rewards and recognition can motivate the stagnant employees to receive new assignments, improve their current skills, volunteer more often for more challenging tasks, and become more proactive members of the organisation. This improvement culture adaptation will be characterised by ambition for excellence in your business, where employees will always strive to improve their performance and pursue their career goals.

Rewards and recognition are very important in an organisation. As per the society of human resource, there is an increase of 86% in employee job satisfaction and happiness.

Benefits of Rewards and Recognition

Workers are More Engaged

Employees realise that they are treasured by the company when they receive rewards and recognition, consequently. When the employees begin to feel the importance of their job, they begin to think of themselves as vital (or indispensable for the company's performance). They often become zealous about their jobs and the organisation as a whole, and they begin to work toward the fulfilment of its objectives.

Employers Keep More of their Workforce

One of the greatest ways to let staff members know the company appreciates them is through RNR. Employee loyalty is higher when they perceive that their employer values them. Employers that value employee retention gain from having a workforce with experience and business acumen. Businesses that have high employee retention also spend less on hiring and training new employees.

Organisations Might Draw in More Excellent Applicants

Candidates may be encouraged to apply for positions with the company through well-publicised RNR programmes, as people prefer to work for companies that value their contributions. The organisation is more likely to find qualified candidates when a position receives more applications. Organisations can create a more robust workforce by selecting from a pool of top-notch candidates.

Workers are More Driven

Workers might be carefully observing their company’s efforts to reward and recognition those who work hard, and this could encourage them to work extra hard to be amongst the recipients of the awards. What will motivate them? Of course, the fact that their work can lead to payment or recognition is a good reason why workers will endure challenges. Employees will look for these kinds of recognition too, if they see others being rewarded or recognized for their achievements is something that they want as well.

Workers are More Efficient

Often, those who are motivated derive more pleasure in continuously working. The productivity of staff members who have met their targets is higher in comparison to those with missed deadlines. Ultimately, the overall impact is the same whether the contribution comes from enhancing the production of goods/clients or from turning a profit.

Workers are Motivated to Grow in Their Careers

An organisational culture that acknowledges and incentivizes staff members for their accomplishments fosters a culture of excellence. To impress their supervisors, workers might attempt to learn new skills, hone their current ones, and volunteer for new opportunities. Employees who take the initiative in their careers may be rewarded and recognised more.

Worker Contribution Valuation

The workers are aware of their contributions. Staff users' sentiment in their workplace increases significantly by receiving acknowledgement or rewards for their work. Whereas managers and supervisors often outline for reward or show their gratitude to the employee, his accomplishments' importance is the main point of discussion. Their statements could help employees apprehend that their intentions are critical for the organisation by allowing them to connect their contributions with outcomes.

How are Rewards and Recognition different?

Although an employer can express their appreciation for an employee through rewards or recognition, there are some significant distinctions between the two. Eight distinctions exist between RNR


Typically, a reward is a material acknowledgement of accomplishments. Rewards like cash bonuses, catered meals, and gift cards are available for employees to touch and interact with. Acknowledgement is an ethereal quality. Instead of removing praise and using it as a reward, employers may choose to give it to staff members verbally or through written words.

Type of Employee Work Evaluated

When deciding which employees are eligible for rewards, employers take into account their milestones. To be eligible for an award, an employee must fulfil a quota or reach a project milestone. Individuals in an organisation typically evaluate an employee's behaviour rather than their accomplishment of goals when determining who should be recognised.


Although both RNR identifies the contributions of employees, employers typically select these forms of acknowledgement for distinct reasons. Employers frequently recognise employees' accomplishments with rewards. For instance, they might award them with something to commemorate 15 years of service or surpass a sales goal. Recognising employees' efforts is a common way for employers to express their gratitude for their continuous efforts. An employee may be given recognition for their good attendance record or for being a diligent worker.

Credit for Accomplishments

Since they are the ones who comprehend and distribute resources per the company budgets, managers and supervisors are the company leaders who bestow rewards on their staff. Since acknowledgement is free, any employee in an organisation is free to give it to others they look up to. For example, people might recognise their peers when they need help with a project.


In light of the associated expenses, rewards are comparatively rare. Supervisors are only able to award as many prizes as their allocated budget will allow. This type of recognition can serve as additional motivation for reaching objectives and completing assigned work because it is rare. This acknowledgement happens more frequently since it is cheap. Outstanding workers may receive daily recognition for their contributions.

Monetary Value

Most of the time, employee recognition is free. Managers and supervisors only need to compliment an employee on a job well done. If a company chooses to publish and distribute its commendations in a newsletter, recognition could come at a minimal cost. When compared to the expense of employee rewards, this cost is negligible. Buying common rewards, such as gift cards or catered meals, can be expensive. Benefits like giving workers an additional day off come at a cost to the company because they have to pay the workers for their time away from the office.

Employee Expectations

Transparent reward programmes are common in businesses because they can spur workers to meet targets or milestones. Workers may anticipate receiving a reward when they accomplish a task or goal. Employees are frequently taken aback when their diligent work is acknowledged in public because there are no predetermined objectives or targets for employee recognition.

Effect on Coworkers

Employee recognition programmes typically evaluate workers as unique individuals and recognise their contributions and merits. Everyone who contributes positively might be acknowledged. Employee comparisons are a common feature of employee rewards and recognition programmes. Instead of rewarding every employee who meets a predetermined sales target, an incentive could be given to the employee who generates the greatest amount of sales in a given month. Employees are forced to compete with one another under this strategy. Because they know they can only win if they outperform their peers, employees can be motivated by this competition.

Employee Experience

Employee rewards can be experienced uniquely because they are tangible. When given an extra day off, they can use it to spend it however they please, redeem a gift card, or eat a catered lunch. When they are recognised, employees experience things differently. Instead of using the recognition in a physical sense, they just take pleasure in it.

Things to Keep in Mind When Implementing Rewards and Recognition

  • Determine which actions and accomplishments are worth recognising. Making a list of the accomplishments and behaviours of your employees can assist those in your organisation in understanding what constitutes a reward or recognition.
  • Honour small victories. Recognition programmes let you celebrate little victories because they can be free and help staff members realise that their contributions, no matter how tiny, are valuable to the company.
  • Consider how to add a personal touch to rewards and recognition. Handwritten notes of appreciation and prizes that are tailored to your employees' interests are two examples of personalised acknowledgement that can have a significant impact.
  • Treat every employee fairly. Make sure the accomplishments highlighted in your programmes are accessible to individuals across all departments and experience levels.
  • Promote staff participation. Establishing a programme for employee-led recognition, in which staff members give each other praise, can foster a positive work environment.

Which Types of Businesses Make Use of Rewards and Recognition?

Since every business uses RNR programmes differently, there isn't a universally applicable answer to this query. Nonetheless, a lot of companies use recognition and reward schemes to inspire staff members and boost output. Retail establishments, dining establishments, and contact centres are a few typical business categories that use RNR schemes.

These companies typically have a small margin for error since they depend on employee performance to meet customer demands. Companies can also use performance metrics to measure employee performance. Because of this, companies in these sectors frequently use awards and recognition schemes to inspire staff members and boost output.


Although there are a variety of techniques for bestowing and confirming success, the core remains the same. Employees are usually provided with a list of targets to achieve, and they will be assessed according to their job performance to ascertain rewards or recognition. According to the company type, the kinds of rewards and recognition can be different and can consist of cash bonuses, gift cards, paid time off, and public recognition.

For an employee to be more driven towards excellence, their achievements must be rewarded. A well-thought-through RNR programme could also be a powerful magnet for attracting and holding on to great employees. This is to the advantage of the company.


What is the Need for Rewards and Recognition?

Recognising, celebrating, and elevating employee successes among peers and colleagues is the aim of an employee R&R programme. Workers may receive social recognition or points that correlate to desired behaviour as a means of acknowledgement. Employees who receive points can exchange those points for experiences, gift cards, or merchandise.

In TQM, what are rewards and recognition?

Recognising and rewarding individual, team, and department accomplishments is one of the best ways to spread the word about the successes of TQM and employee engagement. RNR can come in many different forms, including verbal compliments, gifts, certificates, bonuses, and promotions.

What does R&R in HR stand for?

A system of RNR allows individuals to receive internal or external recognition for their achievements. Recognition and reward are found in work environments where employees' efforts are fairly and promptly acknowledged and appreciated.

What is the purpose of R&R?

Employees receive a sense of appreciation and validation for their hard work and dedication when they receive recognition and rewards. Employee engagement and productivity rise when they feel appreciated and encouraged to give their best work.

An R&R manager: what is it?

The R&R Manager is in charge of ensuring that families receive high-quality childcare referrals and parenting resources and that the professional childcare community receives technical support and training.

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