Rewards and recognition(RnR) are a practice wherein the performance of the employees is acknowledged, appreciated, awarded, and encouraged in various ways. They are generally dependent on specific criteria and can be expressed in monetary or non-monetary forms.
ISuccessful implementation of the RnR program needs adequate planning. Companies must initially frame a reward and recognition policy and then follow it. Also, to implement an efficient reward system for your organization:
An incentive is given to encourage an employee to contribute towards the growth and productivity of an organization.
Rewards are given to appreciate the employees for their overall performance. It is compensation given apart from the salary. It can be monetary or non-monetary.
Recognition is acknowledging and appreciating the employees primarily through non-monetary gains.
Here are the different types:
|Incentive / Variable pay||Awards / Winning titles|
|Bonus / Commission||Verbal appreciation|
|Stock options||Written appreciation through email|
Recognition should be an essential part of an organization as it has several positive impacts on employees, which leads to overall organizational development. Following are some impacts on the employees: