Our company provides award and recognition programs to organizations. One of the more misunderstood and important distinctions is the difference between the two. Recognition is showing appreciation for a job well done, an extra effort, great performance, years of service or anything that a manager or organization would like to do to help show appreciation for an employee. Rewards are pre-defined programs that spell out for an employee what they will receive for achieving a specific outcome.
Examples of Recognition vs Rewards

Recognition: an employee joins the safety committee and spends time developing a new housekeeping checklist. At their next meeting, the committee chair provides the employee with 250 points, giving the employee the opportunity to redeem the points for an item on the company’s recognition platform, such as a company logoed polo shirt.

Reward: an employee has perfect attendance for the year. Per the company handbook, the employee earns an extra day of PTO and a $25 gift card.

Recognition: a marketing employee spends all weekend getting the company trade show booth set up. The employee’s manager gets HR approval to provide the employee an extra day of PTO and a $50 coupon for the online company store.

Reward: a salesperson sets a quarterly record for new sales. As part of the sales incentive plan, the employee earns a $500 bonus for their achievement.
Understanding the Examples of Recognition vs Rewards
The recognition examples are meant to show appreciation for employees who demonstrate intrinsic motivation. Those who are passionate about what they do and are willing to go the extra mile. The reward examples are pre-set rewards, meant to be carrots to dangle out in front of employees to give them the motivation to reach a specific goal. There is a big difference between the two and how they are presented to employees.

Organizations do not want to turn their recognition programs into marketplaces. Rather they want to have a quick and easy platform to allow leaders and peers to recognize employees who put in the extra effort and/or do extra great work. On the flip side, a reward system should be specific, clear and measurable. Employees should know exactly what they are getting when it comes to setting up a reward system.

For more, feel free to contact us at Transcend (bob@transcendengagement.com) or peruse the Incentive Research Foundation website, a wealth of knowledge when it comes to award and recognition programming.
http://transcendengagement.com/recognition-vs-rewards/