The importance of recognition

How important is reward and recognition as part of your organisation’s performance management practices? Many disagree that money improves performance, in fact some critics suggest that some financial reward can lead to poorer performance (Pink, 2010). 

Money based incentive plans can be guilty of discouraging team-work, inhibiting risk taking and undermining our intrinsic interest in our jobs. But whilst their use as a motivator to perform better is debatable financial reward can be an effective tool for recruitment and retention of senior level roles. And no surprises, money can also be a demotivator when employees view their pay as unfair.

But is recognition the more important element?

Reward is promised for particular behaviour…recognition is a post hoc activity and impacts motivation in a crucially different way.

Recognition in its simplest form is a thank you or acknowledgement of a job well done, but it could also be something of relatively low financial value such as vouchers, tickets, activities, a bottle of wine, an Easter egg. These small gestures identify things like - behaviour that goes above and beyond, significant improvements or your team getting through a tough week at work. Saying thank you is encouraging and motivating, we all like to know that we’ve done a good job. Thank you builds engagement with your employees and importantly it builds trust.

Line managers are crucial for successful recognition practices to exist you must invest in their development and training. You don’t have to implement expensive tools and systems of performance management, the most valuable tool to ensuring your performance management strategy is the effectiveness and skill of your managers.

So, get in touch with Stanley & Davis, and we can guide you through how to design a company culture that recognises and thanks its employees – inspiring performance, retaining staff, and attracting new employees.  We can coach you and your line managers and design bespoke workshops.