The terms rewards and recognition have often been used together to describe a company’s incentive system.  This is a real problem because the two concepts really are different and should be treated as such.

Scott A. Jeffrey (LinkedIn profile) Associate Professor, Monmouth University, will introduce the attendees to two fundamental types of incentive programs and show why the concepts of rewards and recognition should not be confused.

Rewards can be thought of as:

• Part of a contingent pay system; it is a “do this, get that” type of arrangement.  For example, sales people who sell a specific amount of a product earn an additional bonus.

Recognition is different from this as it is:

• What is termed a “discretionary” rewards system. Rather than provide a reward for a specific accomplishment, this type of reward is provide for “good work in general.”
• It may also be given for a specific action, but it differs in the fact that it is not a reward that was promised ex-ante for engaging in that behavior.

Learning Objectives:

• Participants will learn how to identify and separate contingent and discretionary reward systems
• Participants will understand the need for both types of systems
• Participants will understand the benefits that accrue from a well implemented recognition system
• Participants will understand how to design and implement discretionary recognition systems
• Participants will learn how to encourage managers to engage in discretionary recognition behaviors