Skip to main content

Innovation Insight for Recognition and Reward Systems

Recognition and reward (R&R) systems help organizations improve employee engagement and workplace culture.

“R&R technology is configured to enable organizations to celebrate work anniversaries and life events and to recognize employees ‘in the moment’ for ‘going the extra mile.’ The idea is to build a sense of community by making recognition moments (and the reasons for them) visible to co-workers and to inspire others to exhibit similar behavior.

R&R technology originally focused on employee tenure (years of service), before incorporating in-the-moment events for more frequent and behavior-based recognition. End-user interest in R&R technology has been building for years, starting with its use as an additional mechanism to inform continuous performance management processes. Interest has since been fueled by the need for organizations to increase employee engagement, improve the employee experience, and alter their corporate culture as a result of the COVID-19 pandemic.”

Gartner® estimates that, ‘’by 2025, 50% of large organizations will have an R&R system, but many will have mixed long-term success. Used correctly, R&R systems can foster a greater degree of connectedness between co-workers and their organization, especially given the disruption of recent times. This is best achieved by linking recognitions to company values, such as agility, collaboration, customer-centricity, diversity, and respect for others and societal issues.”

R&R systems also:

  • ‘’Contribute to and inform talent priorities – for example, they can combat employee attrition as the employment market opens up by providing encouragement separate from formal merit and bonus payments.
  • Enhance performance management discussions by providing supervisors and employees with “on the job” and informal feedback to complement official goals and targets.
  • Help organizational redesigns and resets as organizations adjust to new business priorities – recognition systems can be used to incentivize desired actions and inform leaders how work and collaboration is conducted across an organization.”

To learn more about the benefits of recognition and reward systems,

Download the Gartner report.

Gartner, Innovation Insight for Recognition and Reward Systems, Chris Pang, 2 February 2022

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.