Companies use rewards and recognition to motivate employees and demonstrate that they are appreciated. Often, rewards and recognition take the form of extra compensation for employees who carry out the activities in their role description and meet their objectives. Rewards and recognition can also be given for team-based accomplishments or for meeting project-based targets.
Rewards and recognition have many uses, but in general they help:
- Shape employee behaviour and work ethic
- Give employees the opportunity to share in the benefits of their work
- Make employees feel like an integral part of the company
Rewards and recognition may be monetary (bonuses) or non-monetary (acknowledgement in a company newsletter or during a regular team meeting). They may also be tokens that cost money such as gifts or celebratory meals.