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The terms recognition and reward/incentive are most often used interchangeably when, in fact, the two have some meaningful differences. The reason for the confusion is the similarities they share:
Direct, Focus and sustain appropriate behaviors
Engage Employees emotionally as well as rationally
Articulate what matters most to and is valued by the organization
Become meaningful/credible from fact –based evaluations, multiple managerial judgements, and customer validated quality
Balance the"gives and gets" between organizational performance and employee fulfillment
Contribute to a higher performing workforce and customer satisfaction
Their differences, in theory and practice, are their application, scope and message. Further discussion requires formal definitions of both concepts.
Recognition: Sustains, refines and expands successes by providing an "after the fact" acknowledgement to a team or individual because they have mastered a desired behavior or when others are made aware of the magnitude of the team or individual’s legacy of desired behaviors and results.
Reward/Incentive:Provides a more immediate, extrinsic reinforcement shaping desired behaviors to establish success by giving or offering something for exhibiting desired behavior or to compensate for the effort expended.
Simply put Recognition focuses on doing and achieving the right things consistently while Rewards/Incentives focuses on doing and achieving the right thing.
