Recognition or Incentive? Carrot or Crystal? It’s Not Really A Choice

More and more I’m seeing posts with headlines like: “Ditch the Carrot – Use Recognition Instead” or “Employees Don’t Want Carrots.”

I’m here to tell you it isn’t true.

Yes, employees want more recognition. 

Yes, recognition is a key component in your employee engagement strategy.

Yes, recognition has been ignored in the past.

Yes, the most recent generation of employees are more attuned to recognition based on their “everyone gets a trophy” upbringing.

But don’t listen to all those recognition gurus and trophy salespeople tell you to eliminate your incentive programs.

If I told you that you should abandon email in favor of Facebook would you?  They are both communications platforms.  They both allow you to connect and communicate with various people over the internet.  You wouldn’t do it would you? 

You know they serve very distinct purposes.  So too, do recognition and incentives.

It’s Not About Either/Or – It’s About How Much of Each

The purpose of recognition AND incentives is to influence behavior in your organization so that your employees achieve their individual goals and you help your company hit its organizational targets.

I would never recommend you eliminate incentives any more than I’d tell you to eliminate recognition.  Anyone who tells you to is doing you a disservice.

If you’re getting the hard sell to eliminate your incentive activity in favor of a “recognition” strategy you’re being sold – not counseled.  You’re being manipulated not helped.

The right thing to do is create a mix of recognition, incentive, communication and training tailored to your organizational needs. 

Blindly following a company riding the crest of one best seller advocating elimination of incentives (with bad rationale I might add...) is lemming behavior and further proof that just ‘cuz everyone is doing it doesn’t make it right.

 

 

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Comments

[Hinda Incentives]

Great post, Paul. You hit the nail on the head: it's not about either/or, it's about how much of each. While there's "research" showing the positive effects of recognition, where is the "research" that shows anything negative about incentives? Point blank, you need both.

[Chris Ferdinandi]

Paul, what's your problem man? Moderation? Common sense? Where do you get off bringing reason and logic to the blogosphere??

[Paul Hebert]

I know - moderation from me? I'm getting old.

[Cori Curtis]

I totally agree with you, Paul. I am always telling professionals that daily recognition complements their points-based incentive program. Those that do both quickly realize the value, but it seems to take a lot to convince people they need both.

[Derek Irvine, Globoforce]

Good post, Paul. I'm finding more and more the problem is a lack of understanding that these *are* two different things with ways they succeed in different arenas/situations. We're finding education, discussion and helping people gain a true understanding of what they're end goal is help them to figure out which one is the best option.

[Paul Hebert]

Thanks Cori and Derek for the comments. It is funny - there is a discussion going on in linkedin right now on this very topic... and you'll see that even the "professionals" can't agree on definitions and approaches. That tells me there are deeper agendas at play and that the industry sees this as a zero sum game. It's not though... done correctly no one has to "lose" a sale - but not understanding the difference and understanding how to apply the appropriate tool creates fear and that fear is what is driving the disconnect (IMHO)