Select-Your-Gift Employee Recognition - Blog

About Recognition In The Workplace | Workplace Incentives

Written by Greg Kern | 07/26/2016

Incentives vs Recognition - the important difference

Employee Incentives and Employee Recognition are used to achieve certain objectives, but they're not the same.

Unfortunately, these two terms are used interchangeably and could cause you to miss your overall objectives if you don’t appreciate the differences. We all know the employee recognition definition, but what does incentive mean?

Workplace incentives and employee recognition programs are important tools, and when combined you can get tremendous benefits to your organization. Let's define what is (1) an Incentive, (2) what is Recognition, and (3) the combination of both.


1. The Definition of an Incentive:

Employee incentives are positive motivational stimulus designed to encourage someone to want to do something, such as take some action, work harder, or work differently. Incentives tend to be focused, often targeting a small segment of employees.

With this incentive definition, it should be noted that while some incentives are combined with awards, some are not, such as:

Example 1: allowing flex hours, or telecommuting. These can be good incentives to new job applicants. These perks may cost the company nothing, yet are extremely valuable motivators for some.

Example 2: Tuition Reimbursement or other learning opportunities are great incentives for new applicants, and can help improve employee retention. These important perks also encourage employees to further their education, and possibly perform better in your organization.

2. The Definition of Employee Recognition:

Recognition rewards for various employee accomplishments. It is, by definition, recognition for something - after the fact.

Recognition is management’s acknowledgment and reward when employees have achieved specific objectives, such as: met certain goals or targets, achieved sales or safety objectives, hit length of service milestones, or did something of merit.

Recognition in the workplace usually includes management’s praise and respect for the achievement, and often includes an award. Other Recognition terms are defined as:

Employee Recognition Programs - Recognition Programs are formally written plans, communicated between management and employees, which defines the recognition and the rewards for reaching specific goals, service milestones, or other significant achievements.

Employee Recognition Culture This refers to what is created when an organization incorporates employee recognition in almost everything it does, and everyone is encouraged and celebrated. With this strategy, even the daily efforts of employees are noticed and praised, while larger, more significant activities are acknowledged and rewarded.

3. The Definition of Incentives combined with Recognition:

A combined Employee Incentive-Recognition Program includes narrowly defined incentives, or motivators, along with appropriate recognition when those objectives are met. When Incentives are combined with Recognition, you create the perfect motivators to change behaviors, improve performance, and improve overall engagement.

Part 1 -- Summary:

To motivate with employee incentives, and to create a Culture of Recognition in the workplace, organizations include many of the components described here, each designed to accomplish specific goals. A corporate strategy of continual incentive and recognition will help motivate, encourage, reward, and reinforce the behaviors you want repeated and can significantly improve employee morale. It’s also the best driver of the ultimate goal: improved employee engagement.

Part 2 -- see more:  Incentives vs Recognition - includes:

* Summary of Incentive and Recognition Program types
* Who uses these tools?
* What about the cost of these programs?
* Why use Incentives and Reconition - what are the benefits?
* What are the most common types of Employee Recognition Programs?

For more 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.