Frequently, employee incentive programs are interchanged with recognition programs, but are organizations sending the right message by just issuing an incentive? A multitude of studies exist that prove incentives are more effective when used in harmony with recognition - a time when the recipient can make a connection from appreciation to reward.

The English dictionary defines employee incentives as a motivating influence; an additional payment made to employees as a means of increasing production. This also suggests that when presented individually, an incentive doesn’t resonate with the employee, create an affinity towards a company, or achieve any long-term growth objectives.

Appreciation, on the other hand, is defined as gratitude and thankful recognition. This is a key ingredient in today’s business dynamic. According to a 2011 study from the American Psychological Association, 69 percent of employees are satisfied with their jobs overall, but fewer are satisfied with the recognition practices of their employer (46 percent) or opportunities for growth (44 percent).

There are many solutions that can favorably intertwine appreciation and incentives in the workplace. Employers have sought the use of non-monetary rewards to serve as a tangible and more frequent representation of achievement. When combined with effective recognition, non-monetary rewards fosters memories that the employee subliminally links to their company’s appreciation of their positive behavior at work. A study earlier this year by Jeffrey & Adomdza presented that non-monetary rewards capture more employee attention than their monetary counterpart. The study suggests that employees think more frequently about these rewards and that increased interest results in higher performance. In other words, non-monetary awards capture an employee’s imagination, motivating them to do more. The increased motivational impact generates increased performance.

Another key component that supports a culture of appreciation and recognition in the workplace are peer-to-peer recognition programs. Recognition from peers can be as powerful as recognition from managers, and peers are often in a better position to catch someone doing something right more frequently.

Coupled together monetary and non-monetary Recognition and Rewards programs can have a profound impact on the business environment:


-Provides an outlet for employees to show appreciation to others and express the value of their contributions

-Gives colleagues a sense of ownership and belonging in their place of work

-Improves morale

-Circumvents budgetary limitations

-Contributes to a supportive work environment

-Capitalizes on meaningful reactions and its significance

-Increases employee motivation


The bottom line is that incentives are an effective motivating tool when used in conjunction with a comprehensive recognition strategy. A well designed and implemented recognition program includes a healthy mix of effective employee recognition, sincere appreciation and attainable rewards.

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