System for Rewards & Recognition

Businesses depend on their employees. Without their employees, most businesses could not accomplish much at all. It is worthwhile, therefore, for businesses to show employees their appreciation for their contributions with a system of rewards and recognition.

Types

There are essentially four types of reward and recognition systems that can be used in the workplace: informal recognition systems (which involve informally thanking workers for their contribution), formal recognition systems (where employees' contributions are formally recognized in a public way), awards systems (in which employees are rewarded with an award based on distinct criteria) and service recognition systems (which recognize and reward employees for their years of service).

Function

A rewards and recognition system shows employees that they are appreciated in the workplace and that good work does not go unnoticed.

Effects

A rewards and recognition program can have several positive effects, including heightened productivity, increased motivation and reduced employee turnover.

References

• University of Washington: Employee Recognition