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What are Employee Rewards and Recognition in HR?


The words like employee rewards and recognition are usually used in HR to reward someone for something exceptional or extraordinary, calling it recognizing the most inimitable human resource, for employee achievements, at an organizational level.

The significant increase in employee numbers, in organizations and businesses globally, has put forth challenges for HR managers:

  1. To provide a conducive work environment for its human resource (HR)
  2. And provision of pay for performance through rewarding employees for a great job(s) done

Here we remind our readers that HR Management is the managing of people resources who are ordinary to perform extraordinarily at desired possible level(s) the achievements of goals are pre-determined at the individual, group, and team levels in professional setups.

Recognizing and rewarding human resources is considered among good practices worldwide, and in HR language it is also known as pay for performance. In professional organizations there exist reward system(s) consisting of reward and recognition program(s) having employee recognition ideas to make employees compensated for employee achievements and further them to feel as worthy team members as important for the work environment.

The good company culture(s) are recognized as ever having reward program(s) in place, for example, gift card(s) provision on the occasion of work anniversaries, the establishment of encouraging work atmosphere; and recognizing its HR for the tasks done well.

Why Employee / HR Recognition?

Employee / HR Recognition is there to possibly support:

  • Pay for performance - a magnificent tool within HR management
  • HR Career enhancement of existing workforce
  • HR Career planning (of employees) within the organizations of employees
  • Organizational graph towards performance betterment – as is experienced the services rendered recognized are performed better time and again via the provision of an appraisal-like phenomenon – hence recognition may work as a performance management and betterment tool for human resource management (HRM)
  • Organizational planning betterment steps may be taken by giving up level tasks to experienced workforce
  • Possible employee retention and lessening of HR turnover rates
  • The mission and vision of the employee's alignment with the organizational mission and vision, through financial and non-financial recognition rewards
  • Employees’ moral upward tool and technique
  • Overall satisfaction of employees level improvisation due to pay-for-performance
  • Several budget heads curtailed with a tiny budget expense
  • Much more as per your organizational applicability

What does Research say about HR Recognition?

The latest research concerning HR Recognition: at HBR as of March 2021 shows that Employee Recognition, though a little one, boosts the morale of the employees amid budgetary constraints and burnout conditions at an organizational level, hence this becomes the support to HR management.

How an HR department can recognize employees during financial problems?

When faced with how HR department(s) can recognize employees during financial problems, never panic. HR departments can recognize employees amidst financial crunch through:

  • Certificates provision
  • Thank You Notes
  • Employee of the Month Titles
  • Employee Badges deliverance
  • Recognizing in public

It is agreed without a doubt that these are not substitutes for financial recognition but then again research say the titles go along and they keep the spirit-de-corps at high levels for HR Management purpose(s) – (HBR, 2021)

How much is spent on Human Resource Recognition worldwide?

HR Recognition Budget Worldwide equals an amazing figure of $46 Billion!

What are USA Statistics figures about employee recognition by HR?

Global research survey unveils the USA statistics about the employee recognition programs, whereby claiming that:

37% of employees in the USA have the most important employee reward and recognition programs

34% Employee engagement increase through reward and recognition programs

59% Employee turnover rates decrease if employees are rewarded and recognized through reward and recognition programs

Statistics figures about employee recognition by HR - USA

91% of HR professionals working in the USA believe that employees receiving recognition from employers are more likely to stay.

What do Surveys disclose about HR Recognition?

A Survey discloses that 63% of employees are more likely to be retained through HR Recognition programs in practice.