Project Team Rewards
Literature Review
23
Recognition
Incentives
Extra Holidays
Merit Pay Increase
Gifts (Dinners, Journeys, T-Shirts, etc.)
Profit Sharing
Verbal appreciation (in public or private)
Shares
Written appreciation (letter of commendation;
company's newsletter, certificate)
Cash Bonus
Table 8: Incentives and Recognition (Exmpl.)
Figure 4: Recognition vs. Incentives
(Armstrong & Murlis 2004). Recognition tends to be a non-financial reward or financial
reward with a rather symbolic character. It is given to employees spontaneously and the
purpose is to appreciate the work that employees’ did in the past. The exact distinction is
often difficult (Filipczak 1993). Incentives become recognition in the moment they are
given. Recognition may become motivational if employees expect to get the recognition.
Figure 4: Recognition vs. Incentives
It is possible and often
recommendable to give
both, recognition and
incentives to employees
(Rosenbloom 2001). For
instance, one major
incentive could be promised
for meeting an overall objective. Additional recognition could be given for meeting sub-
goals and as impulses to keep the employees going.
Table 8: Incentives and Recognition (Exmpl.)
What exactly to give to the
employees mainly depends on the
employees’ individual preferences
(Rehu 2005a & 2005b). While
many factors such as age or
nationality influence the
employees’ preferences, gender has no impact according to Wolff et al. (2006). The strong
influence of the individual preferences illustrates a dilemma in rewarding groups. If
differences exist between the reward preferences of the employees, then it has to be
compromised about the reward system. For some employees it might be the most
motivating incentive to get a weekend trip to Paris with the entire team. Other team
members might see it as disincentive to spend a weekend with the team. Again, the modest
reward proponents cannot provide clear instructions on how to deal with this situation.
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