In corporate world, there is a clear distinction between the compensation and recognition. Compensation is what your people get after performing some specific duty and recognition is what your people receive after performing a duty in an outstanding way. What it implies is that recognition is to appreciate some special efforts made by a person while dealing with the assigned tasks.

There are several benefits associated with the recognition awards. But, before exploring the options for award, you need to make sure that there is a good relationship between the pay and the performance of an employee. This is one of the most important but neglected point.

There are lots of companies who complain that recognition program has done nothing for the betterment of their company. Actually, the basic problem here is about the relationship between pay and performance. When employees feel that they are underpaid, they are not likely to get affected by your recognition program. You will first have to address this particular issue otherwise you will end up wasting your money on buying awards, trophies, acrylics, clocks, etc.

In several employee satisfaction studies, it has been found that companies with higher employee satisfaction scores are those who have more employee recognition scores. What it means that both of the concepts are interrelated. If you want your employees to work with zeal and zest for the betterment of your company, you need to understand that monetary and non-monetary rewards needs to be mutual exclusive.