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There are some very important differences between recognition and incentive programs, their structure, how they work, how they are perceived by the participants and what they can accomplish for an organization.


Performance incentives motivate future achievement and are reward programs.

They work by fulfilling the participant’s psychological and emotional needs for rewards and have a different form than recognition programs. They can be a cost effective tool that can help your organization achieve short term goals, sustain achieved goals, and motivate and reinforce above and beyond efforts and achievement.


Recognition is a thank you for a job well done.

Employee recognition programs were developed decades ago to give companies a tool to help their employees develop a sense of affiliation and pride in their employer, employee relationship. Over the years these programs developed into a formal recognition of loyalty, and of an acknowledgement the importance of the employee to the organizations success. A well designed service recognition program will pay for itself in turnover reduction and improved employee morale.

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