When Rewards Fall Flat: The Secret Behind Employee Motivation
Sarah McVanel, MSc, CSP, PCC, CHRL, CSODP
Chief Recognition Officer | Canada's Recognition Expert | Professional Speaker | Coach | Author | 'FROG Lady'
It’s easy to assume that rewards are the gold standard in motivating employees – bonuses, raises, a fancy new title, and viola, motivation is at an all-time high. Yet, rewards fall flat when not backed by something more fundamental at a human level: recognition. Don’t believe it? Read on.
When Dedication Doesn’t Get Its Due
My partner is one of the most dedicated, hardest-working people I know (Ok…maybe I’m slightly biased). For the better part of a year, he had been performing duties beyond his job description. Way beyond. He, a third-year apprentice, was running not one, not two, but three jobs – a task reserved for fully licensed and experienced journeymen. On top of that, he was training new employees, all while still technically in training himself. And he did it all without a complaint.
Although the stress was taking a toll on him, he knew the company was short-staffed and struggling to keep up with their projects. So, he did what he could to help,going above and beyond, despite receiving little to no recognition (in fact, it was usually the opposite – getting reprimanded for things outside his control). Because that’s just the kind of person he is.??
When Rewards Fall Short
After months of him coming home stressed, spending his weekends constantly thinking about work, not sleeping well, and continually listening to me tell him he deserves to work somewhere where his efforts are recognized (I work for a recognition expert; what can I say), he finally decided to do what I suggested.
He asked for a raise.?
Can you guess where this story is going?
When his boss came to talk to him about this raise, he said, and I quote, “I’ll give you a raise, but I expect more from you. You better not make any mistakes.”
Wait… I thought this was supposed to be a reward. Why does it feel like a punishment?
Instead of feeling valued, my partner left that conversation feeling defeated. The raise, which should have been an acknowledgement and celebration of his hard work, became a source of anxiety.?
It wasn’t a reward; it was a warning.
Enter the Recognition Hero
Enter the new leader – someone who genuinely understood the power of recognition. When he heard about this conversation, he was understandably upset. He immediately called my partner, told him to forget everything his boss said, and acknowledged the raise was well deserved. He expressed gratitude for his efforts over the last few months, thanked him for going above and beyond, and affirmed he was both valued and needed.
Ironically, in the few times my partner had considered leaving his job, it had never been about the pay. It had always been about the lack of recognition. It wasn’t until this new leader showed up – someone who took the time to recognize his contributions – that my partner stopped considering leaving.
The Bottom Line: Recognition Wins Every Time
The lesson here is this:?
Rewards can’t replace recognition, and they can’t fix a lack of it.?
Without recognition, rewards are hollow, and in some cases, they can even be damaging. When employees receive a reward, such as a raise or bonus, without having been genuinely acknowledged for their hard work, it can feel like the organization is simply checking a box. Sure, who doesn’t want some extra change in their pocket, but can you actually expect to boost motivation, productivity, or loyalty if the reward isn’t accompanied by sincere recognition of the work that made it possible?
True motivation comes from feeling seen and valued for our work, not just the rewards we receive. Recognition taps into our intrinsic desire to belong and be appreciated, while rewards are the external reinforcement that acknowledges that effort. When recognition is genuine and frequent, rewards naturally become a meaningful celebration of hard work, not just a transactional gesture.?
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Looking for more recognition inspiration? Here are more tasty ideas to feed your recognition hunger:
Guest Author, Mallory Dunbar, Learning Specialist, Greatness Magnified
Program Manager at Bruce Power
1 周Another great piece, Sarah McVanel, MSc, CSP, PCC, CHRL, CSODP! You nailed it again —recognition matters more than rewards. Raises and bonuses are nice, but genuine appreciation is what truly drives engagement, loyalty, and performance. A timely reminder that feeling valued is just as important as being compensated. We can all carry to flame of recognition and make a difference. Thanks for sharing!
President/CEO @ Endurance FCU/EnduranceFCU Insurance Agency | Positive Influencer, Business Strategist
1 周Your insights into the importance of recognition over mere rewards resonate deeply in today’s workplace. It's clear that while financial incentives may provide a temporary boost, they can't replace the profound impact of genuine acknowledgment and appreciation. It's disheartening when hard work is met with stress and anxiety instead of celebration and validation. It underscores the critical role leaders play in fostering a culture where employees feel valued for their contributions. Recognition isn’t just a nice-to-have; it's essential for true employee engagement and motivation. When employees perceive that their efforts are recognized and appreciated, their connection to the organization deepens, enhancing productivity and commitment. As we strive to build more supportive and thriving workplaces, let's prioritize genuine recognition as the foundation of our talent management strategies.