I’m an unapologetic fan of using Abraham Maslow’s well known “Hierarchy of Needs” as a tool to explain and position why Recognition and Reward Systems are valuable. Are there other theories and models that can apply as well? Absolutely … but here’s why I’ll stick with Maslow:
In broad strokes, Maslow says that individuals deal with life by meeting needs in this order
- Physical (“Am I safe and do I have something to eat and a place to sleep?”)
- Social (“Do I have friends I can talk to and spend time with?”)
- Esteem (“Do other people notice when I do something good?”) and
- Self Actualization (“Do I matter?”)
He states that the higher level needs cannot be met unless the lower level needs are met first. A mental walk through history will provide example after example of how this looks in real life (for an expanded explanation of how this translates to the work place, read more about Employee Engagement). Can someone regress “down the pyramid”? Sure – when people go through difficult financial times, they become more concerned about physical needs, they have less time for social occasions and fewer thoughts regarding self esteem – they’re focused on meeting basic needs.
All this matters to people responsible for organizational “people issues” because it’s a good template to use to understand and implement recognition and reward strategies. If you think about what individuals are trying to get done with their life, and then use the tools at hand in your work environment to advance their cause, the people in your company will stay longer and they will contribute more.
A RRS is designed to contribute to organizational success by driving the behaviors and performances valued by the organization. An RRS accomplishes this by appealing to the individual needs that employees have for an understanding of where they fit and how they are valued.
Read the previous two sentences a few more times…
Now, consider the size of the organization you work for. Imagine that your job was to determine the individual needs of each of the employees that work for your organization and to create a method:
- To determine if those needs were being met
- What the employee thought about how the needs were met
- When an employee’s thinking/needs changes or they have a bad day (or bad month)
How you will track that and adjust for their changing needs?
Do you really want that job?
Is it really possible to perform that job, particularly in an organization with more than a few dozen people in it? I don’t think it’s an achievable goal and that’s why a RRS is valuable.
I believe that the highest and best use of an RRS is the communication of organizational culture and behaviors to the employees of the organization. Of the other ways to communicate – internal communications, intranet, newsletters, the water cooler, etc – a systematic approach to recognition and reward is the best method to determine the degree to which employees hear the message and, more importantly, what they think about the message.