What Are The Different Types Of Rewards And Recognition?
Rewards and recognition are not one-size-fits-all. In fact, there are many different types of rewards and recognition and numerous ways in which you can express either of them. However, the goal for any expression remains the same. You want the rewards and recognition activities to help your employees to feel satisfied, motivated toward your company’s collective vision, and engaged with their work.
Types of Employee Rewards
Rewards in employment can be classified into three main categories.
- Intrinsic Versus Extrinsic Rewards
Intrinsic rewards are rewards that aren’t tangible but yield higher levels of job satisfaction. For example, an elevation of job title or notification of personal achievement on the company’s social media. Meanwhile, extrinsic rewards are tangible rewards that are awarded to individuals when they have done good work such as bonuses, free swags, and gift cards.
- Non-Financial Versus Financial Rewards
Financial rewards include monetary rewards such as bonuses, salary raises, etc. On the other hand, non-financial rewards don’t provide the employee with any financial gain. Instead, they are centered on demonstrating appreciation to the employee through alternative recognition ideas such as employee of the month, birthdays, and work anniversaries recognition.
- Membership Versus Performance-Based Rewards
Performance-based awards are given out to specific employees based on their performance within the company. Performance-based awards are realized through pay plans, incentive systems, and group bonuses while membership-based rewards are given in the form of benefits and services given to the company’s employers.
Types of Employee Recognition
There are many different ways in which employees can receive recognition for their hard work, however, all recognition should be purposeful and done in a respectful and frequent manner. Each way can be placed into one of the following categories.
- Top-Down Recognition
In this system structure, employers/managers witness, approve and appreciate the contribution given by their employers.
- Peer-to-Peer Recognition
Here, all members of an organization are empowered and encouraged to recognize the contribution of their colleagues.
- Customer-to-Employee Recognition
Although this is not specifically relevant to HR executives, this kind of recognition is important in terms of motivating an organization to perform to the best of its abilities. In this system, customers give thanks to the employees for the valuable service they have received.