Employee recognition and rewards system is a very delicate matter. One small change can have multiple repercussions in your organization.

Now, what most organizations fail to realize is the balance of their expectations vs. reality. In this post, we are going to discuss the major flaw in the employee reward systems that most organizations follow, and the appropriate solution for it.

The Problem

The biggest problem with an employee reward system is actually realizing the right form of rewards for your employees. Basically, a good reward system orbits around these four areas;

  1. Compensation
  2. Benefits
  3. Recognition
  4. Appreciation

And most organizations cease to care ahead of the first two areas, however weak in those two as well.

Apart from that, another major factor is the criteria to reward the employees. Generally, there are two; performance and behavior. Apparently, organizations only consider performance as a yardstick to evaluate and reward their employees. Whereas, they neglect the very important role of employee behavior in organizational growth.

An employee may be performing really well in terms of the tasks assigned to him/her. But, he/she may have a kind of behavior that is toxic for the other employees and may as well be stopping them from achieving their goals.

The Solution

For an organization to successfully implement a winning employee reward system; firstly, they need to create the right mix of criteria i.e. performance and behavior. Now, the performance part is quite straightforward, as you can compare the outcomes with your goals and so forth.

However, rewarding behavior is a tricky task. But, don’t worry we’ve got you covered in that matter as well. All you need to do is, identify the categories in which you are going to measure the behavior of your employees. For example, you can reward your employees for;

  • Reporting to the workplace on time every morning
  • Working extra hours in a project
  • Their problem solving and creativity
  • Providing great customer service and grabbing good customer feedback

The choice is yours, however, you can easily tell the difference between their usefulness.

As far as the reward types are concerned, you need to hit all sides of the square. The first thing that seizes the attention of your employees is obviously the monetary benefits. An organization is bound to pay the market competitive compensation and benefits to their employees. Moreover, if you are giving that to your employees, then congratulations, you’ve done more than 50 percent of the job.

However, you cannot ignore the importance of recognition and appreciation in your reward system. These rewards don’t take much out of your budget but still constitute a great level of employee motivation. All you need to do is to acknowledge your employees for achieving the goals that you set for them and appreciate them in front of their peers. Can you believe this? This small activity comprises the major 50 percent of your reward system. So, just make sure you’re using those sweet sentences at the right time.


To wind up our discussion, a successful reward system includes the right reward for the right behavior. All you need to do is to identify the behaviors that best align with your organizational goals and then reward them with the right balance of all four kinds of rewards. Pay a sufficient amount of cash, but don’t forget to raise a glass for the high achievers as well.

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