The Importance of Reward and Recognition

By Sandun T Jinadasa -

 


Introduction

A well-structured reward and recognition system is a crucial component of an effective employee performance management framework. In Sri Lanka’s public and private sectors where job pressures, resource limitations, and high service expectations are common and proper recognition plays an essential role in enhancing productivity, commitment, and employee well-being.

 

Role of Reward Management

Non-monetary elements such as career guidance, skill development opportunities, and meaningful recognition can significantly influence long-term job satisfaction. Armstrong (2014) explains that reward management is designed to fairly and consistently acknowledge individual contributions to departmental and organisational goals. When implemented effectively, these systems create a strong link between performance and organisational success.

 


Impact of Rewards on Employee Motivation

Rewards have a powerful effect on motivating employees to contribute innovative ideas and maintain high-quality performance. According to Aktar (2012), employees who feel valued become more proactive and produce better outcomes, benefiting both financial and non-financial performance indicators. In Sri Lanka where salary increments and financial rewards may be limited, especially in the public sector non-financial rewards such as recognition, appreciation, and development opportunities play a vital motivational role.

 


Types of Reward Systems in the Sri Lankan Context

Reward systems include both financial and non-financial components. Monetary rewards such as increments, bonuses, incentives, and allowances remain important in the Sri Lankan workplace. However, non-monetary rewards are increasingly recognised as equally valuable. These include recognition, job security, flexible schedules, development opportunities, and positive feedback (James et al., 2015).

 


 The Power of Recognition

Recognition plays a critical psychological role in retaining and motivating employees. Danish and Usman (2010) state that recognition grants employees a sense of status and appreciation, making it a core driver of motivation and job satisfaction. In Sri Lanka’s private and public sectors regular recognition can help reduce burnout and reinforce a culture of gratitude and support.

 

Conclusion

Reward and recognition systems are indispensable in strengthening employee performance, organisational commitment, and workplace morale. For Sri Lankan organisations particularly in power and energy, healthcare, apparel, and the wider public sector enhancing both financial and non-financial reward mechanisms is essential. By prioritising frequent, meaningful, and fair recognition, organisations can foster a motivated, resilient, and high-performing workforce capable of meeting national service and production demands.

 

References

Aktar, S., Sachu, M.K. and Ali, M.E. (2012) ‘The impact of rewards on employee performance in commercial banks of Bangladesh: An empirical study’, IOSR Journal of Business and Management, 1(2), pp. 9–15.

Armstrong, M. (2014) Armstrong’s Handbook of Human Resource Management Practice. 13th edn. London: Kogan Page.

Danish, R.Q. and Usman, A. (2010) ‘Impact of reward and recognition on job satisfaction and motivation: An empirical study from Pakistan’, International Journal of Business and Management, 5(2), pp. 159–167.

James, O., Ella, R., Nkpoyen, S. and Effiong, E. (2015) ‘Effect of reward system among health care workers’ performance: A case study of University of Calabar Teaching Hospital, Nigeria’, Journal of Hospital Administration, 4(6), pp. 45–54.

REBA (2021) How to Use Recognition to Reduce Burnout. Available at: https://reba.global/resource/how-to-use-recognition-to-reduce-burnout.html (Accessed: 20 November 2025).

Comments

  1. chamith maheshaNovember 23, 2025 at 3:29 AM

    You explain the value of reward and recognition very clearly, and I appreciate how you link it to real issues faced in Sri Lankan workplaces. You highlight well how non-financial rewards can be just as powerful, especially in sectors with limited budgets. Your structure is strong, but you could strengthen it even more by adding one short practical example from a local organisation. Overall, you present a meaningful and relevant reflection on why recognition should be a core part of HRM practice.

    ReplyDelete
  2. Harindra RanjanNovember 27, 2025 at 5:28 AM

    Reward and recognition play a critical role in strengthening employee motivation, commitment, and overall workplace satisfaction. When individuals feel appreciated for their efforts, they are more likely to maintain high performance, demonstrate loyalty, and go beyond basic expectations. Recognition reinforces positive behaviors and creates a sense of belonging, showing employees that their contributions truly matter to organizational success.

    Timely praise, career development opportunities, and public acknowledgment can have an equally powerful impact as monetary incentives in effective reward systems. Reward and recognition, when integrated into the culture, cultivate a positive work environment where individuals feel appreciated and motivated. Ultimately, organizations that invest in appreciating their workforce benefit through improved productivity, reduced turnover, and a stronger employer brand.
    IIf you would like, I can also customize this for a Sri Lankan organizational context or provide academic references.

    ReplyDelete
  3. Sandaruwan Wijerathne November 27, 2025 at 8:29 AM

    Reward and recognition are essential drivers of employee motivation and organizational success. When individuals feel appreciated for their contributions, their sense of value, commitment, and job satisfaction increases. Recognition—whether verbal praise, career growth opportunities, or formal awards—reinforces positive behaviors and encourages consistent high performance. Meaningful rewards also strengthen employee loyalty, reduce turnover, and cultivate a more supportive workplace culture. By celebrating both individual and team achievements, organizations foster a sense of pride and belonging. Ultimately, effective reward and recognition systems boost morale, enhance productivity, and create an engaged workforce that is motivated to contribute to long-term organizational goals.

    ReplyDelete
  4. Ruchina GayanthiNovember 27, 2025 at 9:29 AM

    Insightful post! Reward and recognition are often underestimated but powerful factor which directly affect motivation ,performance and engagement.When employees are feel they are valued,it automatically improve productivity ,loyalty and moral.Timely recognition is important and its not monetary reward but directly connect with personally and professional improvement.In your post you are well explained how reward and recognition system inspire employees and organization both sustainable success .

    ReplyDelete
  5. AnonymousDecember 4, 2025 at 9:07 PM

    This comment has been removed by the author.

    ReplyDelete
  6. Ushan ThalahagamaDecember 4, 2025 at 10:26 PM

    Reward and recognition play a critical role in motivating employees and reinforcing positive behaviors in the workplace. By acknowledging achievements, contributions, and efforts, organizations can boost morale, increase engagement, and strengthen loyalty. A well-structured reward and recognition system not only enhances job satisfaction but also encourages high performance and drives a culture of excellence. Beyond financial incentives, recognition can take the form of praise, career growth opportunities, or public acknowledgment, all of which signal that employees’ efforts are valued. Implementing such practices consistently fosters a sense of belonging and purpose, reducing turnover and improving productivity. Organizations that prioritize reward and recognition create a supportive environment where employees feel motivated to perform at their best, contributing to long-term organizational success and a positive workplace culture.

    ReplyDelete

Post a Comment

Popular posts from this blog

The Role of HRM in the Success of Organizational Restructuring

By Sandun T Jinadasa -
Image
  What is Organizational Restructuring? Organizational restructuring is a strategic initiative undertaken to realign internal structures, roles, and processes in response to changing business environments, technological advancements, or new goals (Ganesan, 2025). It can involve altering hierarchies, redefining responsibilities, consolidating departments, or revising policies and procedures. Drivers of restructuring often include mergers and acquisitions, economic downturns, technological disruptions, or strategic shifts aimed at improving efficiency and competitiveness . The Role of HR in Organizational Restructuring While restructuring is often perceived as a financial or strategic exercise, its ultimate success depends heavily on people. Human Resource Management (HRM) plays a pivotal role in ensuring that employees adapt and contribute positively during transition. HR must balance organizational objectives with employee well-being, acting as the bridge between strategy and the w...
Read more

Industrial Automation and Unemployment: The Sri Lankan Perspective

By Sandun T Jinadasa -
Image
Introduction Industrial automation encompassing robotics, artificial intelligence (AI), and digital control systems has become a transformative force in Sri Lanka’s industrial landscape. From petroleum industry to apparel manufacturing, automation enhances precision, safety, and efficiency. However, the growing use of automated technologies has also raised concerns about unemployment and workforce displacement. The challenge lies in ensuring that technological progress promotes inclusive development rather than social inequality. The Potential and the Risk Automation delivers tangible benefits. In petroleum industry, for instance, automatic tank gauging (ATG) systems, Programable Logic Controllers (PLC), and supervisory control and data acquisition (SCADA) platforms enable safer, faster, and more accurate operations. These technologies reduce human error, lower exposure to hazardous environments, and improve regulatory compliance crucial in high-risk facilities such as the Ceylon P...
Read more

Developing a Culture of Commitment Rather Than “Doing a Job”

By Sandun T Jinadasa -
Image
Introduction In many Sri Lankan organizations, work is often viewed as a routine obligation, employees “do their job” to earn a salary rather than to create value. However, in the modern business environment, success depends on commitment, not compliance. A culture of commitment means employees are emotionally and intellectually engaged, motivated by purpose, and take ownership of results (Armstrong & Taylor, 2020). Commitment vs. Compliance Compliance ensures that employees follow rules; commitment ensures that they believe in them. Committed employees align personal goals with organizational objectives, actively contribute to improvement, and demonstrate resilience in change (Ulrich et al., 2021). This transformation requires shifting from control-based management to trust-based leadership that empowers employees to take initiative. Commitment in the workplace goes far beyond simply having a job. It represents the psychological attachment and dedication an individual feels ...
Read more