Recognition vs. compensation

The creative industry has seen its fair share of growth in the past few years. In part, this expansion is due to technology, such as the internet, which has become the main venue for individuals wanting to connect and converse with one another. Today, the creative industry has grown significantly with web design jobs and social media jobs on the rise.

Employees in certain industries respond to recognition and compensation differently. Often, business owners debate the appropriate method for praising successful employees. Many business owners find that offering monetary compensation can cause more harm than good in the longrun.

In the debate of recognition versus compensation, the answer lies in how a business manager wants to reach the same end result. Overall, the goal of any incentive, reward and recognition program involves motivating employees to follow proper company procedures and values for reasons other than landing a job contract and a standard paycheck.

Therefore, many organizations choose to use non-cash rewards, such as branded merchandise, gift cards and group travel because it is more tangible. Many times, cash rewards are spent on responsibilities and bills, and after the funds have been depleted, there is little for employees to reflect back on and remember their accomplishments.

Furthermore, public recognition appeals to the higher levels of Maslow's hierarchy of needs, according to Crystal Art USA. According to his theory for understanding human motivation, the top two priorities are self-actualization and esteem needs. A company that praises an employee for a job well-done easily helps individuals feel like they have fulfilled a career goal and continued to grow as people. In addition, recognition also increases one's reputation and status within a company. Individuals value how they are perceived by coworkers and clients, and being publicly praised by managers helps to promote a sense of achievement.

Offering non-cash rewards can be satisfying to employers and workers. Cash can easily be associated with a paycheck, and employees can come to expect a pay increase with each successful venture. Non-cash rewards, on the other hand, have a far greater chance of symbolizing success and creating an environment where workers strive to reach a goal that does not come with a predetermined reward already set in stone.

Business owners who want to help their employees reach their full potential and promote a community of continued growth and appraisal should find ways to recognize individuals in other ways than offering them a lump sum of cash on a slip of paper.