More Than Rewards: Recognition’s Rise as a Strategic Business Imperative

For years, organizations have invested in compensation, benefits, incentives, wellbeing initiatives, and an ever-growing list of employee perks. And rightly so, these investments matter.

But there’s another question organizations need to ask: Do employees feel that what they do really matters?

This idea formed the foundation for the SHRM & O.C. Tanner webinar, “Beyond Rewards: Rethinking Recognition as an Engagement and Retention Strategy,” moderated by Nitya Vijayakumar – Director, Consulting and Capability Development at SHRM, with an insightful panel comprising Subhajit Mitra – Human Resources Leader at Carrier India, Candy Fernandez – Director, People & Great Work IMEA at O.C. Tanner, Dr. Swatee Sarangi – Group HR Head, India, North America, and Emerging Markets at Dr. Reddy’s Laboratories and Dr. Sujatha Sudheendra – Head HR & Admin at Aditya Birla Finance Limited.

The conversation soon moved beyond the standard idea of recognition as a certificate, an award, or a regular “thank you.”

As Nitya noted, “Rewards answer the question, ‘What do I get?’ while recognition answers, ‘Does what I do really matter?’”

This distinction is more important than it looks at first sight.

Recognition is not the aim.

The biggest message from the discussion was that organizations must stop treating recognition as an HR program in its own right.

Candy put this across especially well: “Recognition itself cannot be the goal. That is not the goal. The real question is, what are we trying to build?”

If an organization wants more collaboration, then it should recognize collaborative behaviour. If innovation is the goal, then recognition should reward not just perfect execution, but experimentation and careful risk-taking as well. When customer impact matters, recognition should reinforce the behaviours that create that impact.

Simply put, what an organization acknowledges tells people what the organization truly cares about.

The Strength of Everyday Moments

Subhajit provided another helpful lens. Recognition happens at the intersection of an employee’s personal experience and the organization’s larger purpose.

His comment was straightforward: “The way I think about recognition, it’s sort of a connector.”

That connection exists in everyday moments that are easily overlooked: a supervisor witnessing someone solve a problem, a colleague going above and beyond, a team supporting another function, an employee displaying the behaviour that the organization wants to see more often.

The key word here is every day. Recognition cannot thrive if it is only present at annual awards or town hall meetings. It must be part of how managers lead and how teams work.

Importantly, Subhajit reminded us that organizations should not get too obsessed with celebrating only the end result. He added, “It’s important to celebrate the results, but it’s far more important, in my view, to look at the small wins.”

The main difference is authenticity.

Dr. Swatee injected a dose of much-needed realism into the discussion. Many organizations have existing platforms, rituals, and events for recognition. The question is whether recognition has become a part of the natural culture.

Her point was especially striking: “I think every employee that comes to work has a child within them. So, we have to remember that. We have to keep it very authentic as well.”

The reason that authenticity matters is that employees can distinguish between recognition that is actually felt and recognition that is simply being doled out.

She also questioned the idea that recognition should be handed out through a fixed annual quota. Recognition, she argued, should be natural, personalized, and part of the flow of work – not a tick box at the end of the year.

Recognition is personal.

Subsequently, Dr. Sujatha brought one of the most human perspectives to the conversation.

She described a time early in her career when a senior leader had simply asked for her opinion during a presentation. That little moment conveyed something powerful to her: My opinion matters.

Her broader message was equally powerful: “A place of belongingness should be a safe place.”

Recognition need not always be an award or a public announcement. It could be a handwritten note, a shout-out to someone’s contribution, thanking their family, recognizing their effort on a difficult project, or just giving them your full attention.

Dr. Sujatha also pointed out that leaders need to understand the different ways in which people want to be recognized. Some people prefer public recognition, while others prefer private recognition. Some people value words of appreciation, while others value an opportunity or a gesture.

The Real HR Opportunity

The discussion ultimately suggests a larger shift in the role of HR.

The question has moved from “Do we have a recognition program?” to:

• What behaviours do we want to encourage?

• Are our leaders modelling these behaviours?

• Are managers noticing people in the flow of work?

• Are we rewarding effort as well as results?

• Does recognition mean anything to the recipient?

• Are we building a culture where people feel seen, valued, and connected?

Recognition may seem small. But when done consistently and authentically, its impact is anything but small.

Highlights

1. Recognition should support the strategy.

Acknowledge the behaviors that enable the organization to deliver its business and cultural priorities.

2. Weave it into everyday leadership.

Annual awards and formal programs should not be the only moments of recognition. It’s the small, timely moments that often have a bigger impact.

3. Authenticity is more important than frequency.

There’s no ideal number of times someone should be recognized. It is a question of whether the recognition is genuine and meaningful.

4. Personalize recognition.

People have different preferences.

Knowing the person is as important as knowing what they have achieved.

5. Celebrate the journey, not just the destination.

Effort, collaboration, learning, small wins, and behaviors that support others also deserve attention and recognition.

6. Recognition is finally about inclusion.

People may join organizations for the opportunities and rewards. They are more likely to stay when they feel valued, trusted, appreciated, and engaged.

The biggest lesson from the conversation is probably the simplest: people don't just want to know what they get from an organization; they want to know that their organization cares about them.

And that’s where recognition goes beyond rewards—from being solely an HR-led program to a defining part of the employee experience.