Difference between rewards and recognition

November 7, 2020

By admin

Customer Rewards Program

While you will find “rewards” and “recognition” being used interchangeably with each other, it is anything but the same. In order to use both of them efficiently, we must know how both differ from each other.


  1. Rewards are tangible. Rewards are mostly monetary or have some monetary value that can be attached to it.
  2. Rewards are transactional in nature. For a particular input, you get an output in return. Thus rewards are an excellent way to attract the top talent to your organization.
  3. Rewards are economical considering that for investing in such small amounts of resources you get a much higher return in terms of productivity and ultimately business profits.



  1. Recognition is intangible. Even though it’s value can’t be measured it remains an integral part.
  2. Recognition is relational in nature. It’s a form of building an emotional connection between the employees and the organization. This makes recognition the ideal way to retain the said top talents.
  3. Recognition in emotional, a psychological event of feeling seen, appreciated and mattered. Proper recognition has the power to bring out the motivation even in the most dormant of employees.