Need for Reward and Recognition (R and R)

R & R concerns with implementation and execution of processes that aim to identify and reward people fairly and in accordance with the value they create in an organization. Recognition needs are linked to the esteem needs mentioned in Maslow’s hierarchy of needs. Individuals need to know not only how well they have achieved their objectives but also that their achievements are appreciated. It creates a sense of confidence and commitment in the organization.
R and R helps in attracting and retaining a skilled and competent workforce thus making the way for identifying and managing talent. R and R sets the bar for performance standards and sends the right message of what is expected from employees in terms of performance as well as behaviour. It encourages individuals and teams to do the right thing by aligning company objectives with individual and team goals, thereby gaining their commitment and engagement. R and R not only supports the development of teamwork but also a performance driven culture. A good R & R process includes competence and achievement of objectives in performance management reviews so employees can focus with their managers on expected outcomes in performance and behaviour. An effective reward system rewards and recognizes people on the basis of their contribution to the organization rather than relying on promotions as a reward for their loyalty and service i.e. Rewards should be based on performance and not loyalty. It is important to remember one size won’t fit all. It is not feasible to create a set of rewards that is universally appealing to all employees. Hence reward systems should not be absolute and rigid. It needs to be customizable that fits with your culture and short/long term company objectives.