Importance of Rewards & Recognition

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Importance of Rewards & Recognition

Rewards are generally recognized as being important for employees, but often people do not understand why. It is worth looking at three types of reward and recognition programs to understand their importance.

  1. Informal Rewards and Recognition

    • Informal rewards and recognition involve showing gratitude and thanks on an everyday basis for employees' contributions. This type of rewarding and recognition is important because it lets employees know that everyday little things and accomplishing regular tasks are crucial.

    Awards Programs

    • Awards programs recognize and reward employees for large accomplishments in a formal way. These programs are important because they show that large achievements are critical to the business. They also show employees which types of behavior will be rewarded.

    Service Rewards and Recognition

    • Service rewards and recognition are given to employees who have served with the company for a lengthy period of time. This shows employees that long-term dedication to the company will be recognized and rewarded, and it has the effect of reducing employee turnover.

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