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Employee Rewards vs. Recognition: What are the Differences?

Employee Rewards vs. Recognition: What are the Differences?

Many business organizations’ managers or human resource departments search for ways to increase their employees’ motivation to boost productivity, improve employee engagement, reduce turnover, and increase work output.

There are two systems that employers can use to achieve these goals: employee rewards and recognition.

There are clear distinctions between these systems. Thus, if not used appropriately, they will not yield the desired results.

This article discusses the differences between employee rewards and recognition so that you can make the most of them to show appreciation for your staff.

What is an Employee Reward?

An employee reward is a well-timed gift to an employee to recognize and appreciate their efforts in achieving an organization’s goal or for fulfilling their responsibility especially well.

Managers or HR staff usually reward their employees periodically, usually at the end of every business year, to motivate them to do better. An employee reward is usually tangible. 

What is Employee Recognition?

Employee recognition is an appraisal or praise given to an employee to honour them for reaching a milestone. It is not tangible but usually a formal expression of gratitude during meetings, on bulletin boards, or through emails.

What are the Differences Between Employee Rewards and Recognition?

1. Cost

Employee rewards usually cost money, as they come in the form of goods. This is different from employee recognition in the sense that employee rewards are most likely to cost more money to implement.

Employee recognition costs little or no money. Managers can simply praise an outstanding employee at meetings or through newsletters and email.

2. Physicality

Employee rewards come in the form of monetary rewards, gift cards, the introduction of bonus packages, etc. Employee recognition is not tangible. Supervisors or HR staff deliver praise to an employee verbally or in a written form.

3. Timing

The timing of employee recognition is highly important to achieving its effect. It should be delivered shortly after the accomplishment of a milestone. An employee reward can be given at any time and its purpose will still be achieved.

4. Target

Although both employee rewards and recognition aim to motivate employees, their specific purposes differ.

The objective of an employee reward is to reward an employee for reaching a set milestone or achieving outstanding performance in finishing a project.

Employee recognition differs in that it aims to acknowledge and praise employees for carrying and maintaining a certain attitude toward work or being diligent in performing their duties.

It does not require meeting a certain goal.

5. Influence

Employee recognition requires evaluating employees based on their individual contributions and merits. This does not foster a competitive spirit among employees.

Employee reward programs assess employees in relation to one another, which can sow a spirit of competition among them.

6. Experience

Employees can enjoy an employee reward by spending the monetary gift or redeeming the gift card. However, employees cannot use recognition in a tangible way.

Instead, they can enjoy the praises and commendations they receive from their colleagues.

The Adoption of HR App Reward Systems

To reward an employee for their effort in your business, you must assess them to ensure that they meet the reward prerequisites.

Using the EasyWork HR system is a great way to assess and reward your employees according to their contributions in achieving a set goal.

EasyWork, a powerful HR app that comes with a reward system, allows business managers and supervisors to align their organizational goals with it and monitor the positive outcome.

It recognizes employees’ productivity and rewards them accordingly.

With EasyWork, gifts are redeemed through points. As points accumulate, employees can redeem them for gift items from the list that the company has allocated.

Employees can be rewarded with points if they complete an assigned task in a quest. Thus,

employees will feel highly appreciated, which will boost their motivation in performing their organizational responsibilities.

The EasyWork user interface is easy to use even for one who is not computer savvy. The features are simply laid out.

With more than 20,000 worldwide users, it is one of the best reward system apps. What’s more, it is highly affordable.

All in All

Employee reward and recognition systems have been proven to be highly rewarding for businesses.

They lead to increased employee motivation, higher retention rates, and improved employee engagement.

The positive outcomes of employee recognition and rewards will quickly penetrate every aspect of your business to boost its growth.

Get the EasyWork HR app to meet your business and employee reward and recognition needs.


Grab your EasyWork subscription now with our new RM plans starting from just RM299!

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