Inadequate reward and recognition

What is inadequate reward and recognition?

Inadequate reward and recognition refers to jobs where there is an imbalance between workers’ efforts and recognition or reward, both formal and informal. It becomes a hazard when there is very little reward and recognition, when it is long-term or when it happens often.

Impacts on workers include low morale, performance and motivation and increased stress and burnout. There are a range of negative consequences for organisations too, including high absenteeism and staff turnover, low employee engagement, lack of innovation and creativity, absence of discretionary effort, increased complaints and conflicts and a negative workplace culture.

Inadequate recognition and reward may include:

• receiving unfair negative feedback
• receiving insufficient feedback or recognition
• unfair, biased, opaque, or inequitable distribution of recognition and rewards
• limited opportunities for development
• not recognising workers’ skills.

Ways to recognise and reward workers

Recognising worker contributions and achievements as individuals and teams, and rewarding their efforts are important in minimising the risk of work-related stress. Before designing a recognition and rewards program, consult with workers and any HSRs about the types of rewards that would be meaningful and relevant to them.

Task performance feedback

• Listen to your workers’ needs, concerns and ideas – be responsive to them as a meaningful form of recognition.
• Provide workers with regular feedback. Praise workers when tasks have been done well and be specific about what has been well so that it may be repeated.
• Congratulate workers (either formally or informally) on a job well done by:
  • Celebrating successes through team morning teas or lunches
  • Recognising individuals in team (or group) meetings
  • Advising a supervisor is a peer performs well
  • Communicating the good news up the chain.
• Recognise and celebrate successes promptly.

Development opportunities

• Ensure rewards are meaningful and are tailored to suit the worker and/or work group. For example, if possible provide:
  • access to organisational workshops and training programs beyond those that are necessary for workers to undertake their roles.
  • opportunities to participate in ongoing personal and professional development through continued learning outside of the work environment.
• Provide workers with opportunities for career development such as acting in higher level roles during a supervisors absence.
• Consider rotating jobs or using coaching/mentoring to enrich workers’ interest and motivation and enable them to broaden their skill set.

Performance reviews

• Provide feedback promptly and ensure it is specific, practical and fair.
• Ensure performance management focuses on things workers can control.
• Train supervisors on good performance management.
• Prioritise improvement over blame when having difficult conversations or managing underperformance.

Rewards program

• Be fair and transparent when recognising or rewarding workers.
• Use rewards to acknowledge good performance and not as a way to control a worker’s behaviour. Consider rewards as an expression of appreciation and a way of recognising individual or group contribution to a job responsibility, task or an organisational goal.
• Determine the objective of a reward, for example, to recognise a worker’s value or to provide encouragement before deciding on what the reward should be.
• Rewards may be:
  • informal (for example simple comments such as ‘thank you’ or ‘great work’ or assignment to a special project)
  • formal (for example prizes, gift certificates/cards

• Any reward should reflect the level of effort applied. Ensure the system is fair and equitable for all workers and that the rewards may be achieved with realistic effort.
• If appropriate, implement a rewards program that provides positive reinforcement for contributions, which align with the organisation’s overall goals.
• Research or consult with your workers about the type of rewards that they would find meaningful and relevant
• Ensure the program is communicated to the entire organisation and that all workers have an opportunity to benefit from the program, not just the top performers.

Group rewards

• Recognise and reward workers for individual, as well as team accomplishments.
• Give group rewards based on the performance of a team or unit rather than any one individual. This can be achieved by linking rewards to the performance of a group as a whole and will both enhance teamwork and avoid potential conflict between workers.
• Provide rewards that reinforce teamwork, for example a team morning tea or lunch, and ensure the reward is equitable and accessible to all team members who contributed to the project or task.
• Be mindful of rewarding workers for individual accomplishments as well as accomplishments as a member of a team. Each member of the team still needs and expects to be individually recognised and rewarded for their contribution to team goals.

Resources on reward and recognition

• Inadequate reward and recognition - Safe Work Australia
• Good Work Design - Enhancing Performance - Comcare
• Good Work Desig: Building trust in your team - Comcare
• Recognition and reward minimising work-related stress tip sheet - SafeWork NSW