What’s Wrong with Today’s Rewards and Recognition Programs? 

Recognition isn’t some new concept we just came up with for the workplace. Humans have been using recognition for centuries! Think about knighthood, medals for veterans, or even something as simple as a heartfelt thank-you to a stranger. Recognition is everywhere, and it’s powerful. At work, rewards and recognition (R&R) programs are there to say, “Hey, we see you, and we value what you’re doing.”

But here’s the thing—are these programs really doing what they’re supposed to? Are they actually inspiring the behaviors companies want to see, or are they just kind of… there?

Let’s take a look at why so many R&R programs miss the mark and how understanding the behavioral science behind them could make all the difference.

Rewards vs. Recognition: They’re Not the Same Thing

First things first, let’s clarify the difference between rewards and recognition. They’re not the same, but they’re often treated like they are. Rewards are the tangible stuff—bonuses, incentives, and maybe even that cool new tech gadget. Recognition, though, is more about the intangible. It’s the thank-yous, the public shoutouts, or even a quick “Great job!” in a team meeting.

And here’s where it gets interesting. Behavioral science shows us that while rewards can be a nice short-term motivator, recognition has a much bigger impact on long-term behavior. Rewards can sometimes make work feel transactional (think: “I do this, I get that”), but recognition taps into something deeper—it connects with our intrinsic motivation. When someone genuinely acknowledges our effort, we feel good and want to do more of it. The dopamine in our brains kicks in, reinforcing that behavior.

But many companies are still pouring their energy into rewards instead of building a culture where recognition happens naturally and frequently.

Why Context Matters: One Size Doesn’t Fit All

If you’re working in a bank, you’re probably not going to get recognition for taking big risks. But in a startup? Taking calculated risks might be the thing that gets you a high-five from the CEO. Recognition programs need to fit the context of the organization. But here’s a problem—many companies just copy and paste R&R programs from other places, or even from their previous jobs. So, you end up with a very generic structure—“Employee of the Month,” “Team of the Quarter,” etc.—that doesn’t really resonate because it’s not aligned with the company’s specific goals or culture.

Behavioral science shows that for recognition to be truly effective, it needs to reinforce the specific behaviors that drive success in your organization. If your company wants to encourage customer-centricity, for example, recognition should focus on actions that show empathy and problem-solving for customers. If innovation is the goal, recognize creativity and risk-taking. Tailoring recognition to the culture and strategy of the company makes it far more impactful.

Recognition Isn’t Just a Program; It’s a Daily Practice

This is a big one. We tend to think of recognition as a structured program—a ceremony, a quarterly award, an end-of-year bonus. But recognition doesn’t have to (and shouldn’t) be that formal. In fact, behavioral science suggests that small, frequent acts of recognition have a greater impact than big, occasional rewards.

Imagine a workplace where managers and peers are constantly recognizing each other’s efforts in real-time. It’s less about the “Employee of the Year” award and more about the casual, everyday acknowledgment that makes people feel valued and motivated. This culture of regular, informal recognition can create a ripple effect—when people see others being praised for positive behaviors, they’re more likely to emulate those behaviors. It’s a cycle of positivity that builds a stronger, more engaged team.

What's the Key?

For organizations to make their rewards and recognition programs effective, they must go beyond just offering rewards and instead focus on intrinsic motivators. Recognition needs to be specific, timely, and in line with the company's values. It should counteract our inherent negativity bias and be ingrained in the daily work environment, rather than being a once-a-year event or a year-end bonus.

It's time to transition from viewing recognition as a mere program to embracing it as a natural, essential component of the workplace. According to behavioral science, recognition can drive significant changes in behavior not by adhering to a standard checklist, but by fostering a culture where individuals genuinely feel acknowledged, valued, and motivated to continue developing.