Learn how to identify and separate contingent and discretionary reward systems
Understand the need for both types of systems
Understand the benefits that accrue from a well implemented recognition system
Understand how to design and implement discretionary recognition systems
Learn how to encourage managers to engage in discretionary recognition behaviors
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. This webcast 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 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.