Rewards, recognitions that make cents.

• Author: Richardson, Mary
• Position: Human Resources

Money is the first thing that springs to mind-at least if you're a manager--when you mention employee rewards and recognition. And how better to show employees appreciation than by giving them a raise or a bonus?

But then questions begin to fill your head. "How will I recognize people by giving them money when I'm already over budget on payroll. And if I tell someone they are doing a good job, won't he or she expect a promotion, or at least a raise?"

While money is certainly an important factor for employees, they often are looking for more nonmonetary types of recognition.

In his book, "Off the Bench and Into the Game," former National Hockey League star and now motivational speaker Ryan Walter says people want two things in life: significance and intimacy. They are looking for these things at work and in their personal lives.

THINKING DIFFERENTLY

Employee and manager surveys over the past 60 years bear out Walter's belief. Lawrence Lindahl conducted one such survey in 1949. It asked staff members and managers of firms to rank from 1 to 10 (1 being highest) what they wanted most from their jobs.

On the list of 10 choices was everything from good wages to promotion opportunities, and from appreciation for work done to tactful discipline.

A clear difference in thinking between managers and employees emerges when we look at the survey's results.

For managers, the top three issues were wages, job security and promotion opportunities. For employees, full appreciation for work done, feeling "in" on things and help with personal problems topped their list--the same three items managers ranked No. 8, No. 9 and No. 10.

Even more surprising is that this survey has been repeated over the years with the same results. Even a retention survey our firm conducted in 2001 indicated similar trends and gaps in management's understanding of what workers look for in job satisfaction.

In fact, when our survey asked executives, "What makes your job worth investing your time?" we found that executives' priorities mirrored those of other employees. So, from CEO to entry level, all employees are looking for much the same thing--being appreciated, being part of what's going on and being recognized as a whole person.

INTRINSIC, EXTRINSIC REWARDS

How does this apply to reward and recognition? Let's look at rewards first, and the difference between intrinsic and extrinsic rewards.

In the surveys, managers focused on extrinsic rewards for their employees. They believe...