Incentives vs Recognition | Difference - Part 2
Continuing on the previous article: Incentive Definition - Part 1, this article summarizes the differences between Employee Incentives and Employee Recognition, and continues with answers to these important questions:
- Who uses Employee Incentive and Recognition Programs?
- What about their Costs?
- Why Use Incentive or Employee Recognition Programs - what's the value?
- What are the most common types of programs?
- Incentives without Recognition: ie: perks, such as flex hours and options to telecommute.
- Recognition without Incentives: ie: Service Awards for length of service anniversaries
- Incentives combined with Recognition: Some typical incentives that could be combined with awards and recognition are:
Who uses Employee Incentive & Recognition Programs?
Surveys have found that most successful organizations have at least one type of recognition program for employees in place, and many have multiple programs, often up to 3 to 5 different employee incentive plans. The most popular employee recognition programs are Service Awards (length of service recognition), and excellent performance awards.
What about the Cost?
Most companies do not consider Incentive and Recognition Programs for employees to be an expense, but consider them investments. This investment can have significant payback to the company by increasing employee morale and satisfaction (reducing turnover), creating a more desirable place to work, and by motivating employees to higher performance. Further, not all employee recognition requires tangible awards, and there are many employee incentive program ideas that don't. An example of intangible recognition is a personal note or a personal “Thank You” from the employee’s manager. These can be very meaningful, and have a significant impact on morale.
Why use Recognition Programs?
According to recent Gallup analysis, only one in three workers in the US say they have recently received recognition for doing good work. Employees who feel they’re not being adequately recognized for their efforts are twice as likely to say they will quit within the next year. However, the use of workplace recognition motivates, improves morale, improves employee engagement, increases productivity and even the quality of work, all while creating a fun atmosphere in your company.
What are some of the most common types of Recognition Programs?
• Onboarding – the completion of an onboarding process, or a trial period
• Years of Service Anniversaries - Service Awards, and Retirement
• Sales Incentives – Performance, Sales Contests
• Safety - recognition of Performance, Improvement, Training, etc.
• Attendance, Peer to Peer, Excellence, Above and Beyond
• Employee of the Month - or Year
• Points Based Programs: can incorporate all of the above into one easy to manage platform.
For information on easy to use and low cost solutions for your employee incentive and recognition programs, see Employee Recognition Solutions, or click the link below to request a free information packet be sent to you.