Reward and recognition refers to how an organisation shows appreciation for good work that is achieved within the business. It may be given in the form of monetary awards, non-monetary awards or simply the acknowledgement that a staff member is doing a great job. When this factor is properly managed, ensuring a sense of fairness and equity it can be a motivation for staff to work to their full potential.
If inadequate rewards and recognition are perceived to be lacking in organisational justice, it can be responsible for causing a psychological hazard over time. Ideally the reward should be something that is of interest to the recipients and recognition should be offered as either a public or private affair to ensure it is a motivator not a stress to team members.
David is a technician who works at an IT firm. Over the last 12 months he has noticed that the developers in his department have been getting recognition and rewards for their projects. David is an essential team member whose skills are essential for delivering these projects in a timely manner and on budget. After waiting a prolonged period of time in the hope that he would get recognised at the monthly team meetings, David eventually picks up the courage to mention his feelings of disappointment and his perception of lack of fairness within the system.
David’s boss is very annoyed that David would even think of mentioning such an issue and instantly shuts down the conversation. Over the coming week’s David notices that he is being excluded from some of the meetings and he feels isolated, stressed and a sense of anger.
What contributes to Inadequate Reward and Recognition
- Ignoring team achievements
- Lack of realistic expectations
- Lack of leadership support
- Negative organisational culture
Negative Consequences of Inadequate Reward and Recognition
- High staff turnover
- Presenteeism
- Reduces confidence of team member
- Reduces organisational loyalty
How to mitigate Inadequate Reward and Recognition
Develop a Recognition Program: Develop a program that has fairness and structure that enables all employees to be acknowledged for their contribution regardless of their role. This may include but not limited to regular performance reviews, employee of the month rewards, and a bonus structure based on very clear criteria.
Create an Empowering Culture: Create a workplace culture where appreciation is a normal part of everyday interactions. This can occur by having achievements mentioned in regular team meetings, it can be having a shout out on the company intranet as to the top achiever of the week.
Manager Training: Ensure managers understand the importance of recognising a job well done. Reward and recognition should also be given to managers and leaders within the organisation. This strategy promotes a sense of appreciation that will carry throughout the organisation.
