How much do reward and recognition programs cost?

Reward and recognition programs can be high cost, but they don't have to be. Surveys have shown that the rewards and recognition techniques with the greatest motivational impact are practiced the least-even though they are easier and less expensive to use. Employees report that a personal or written thank you is a top motivator, yet they also report that they are seldom thanked.

Increasing use of non-monetary rewards. According to a 2000 survey of 410 employers by Watson Wyatt Worldwide, employers were doing more in the area of non-monetary rewards in 2000 as compared to 1999. The survey found that the three most prevalent non-monetary rewards are:

• advancement opportunities (76 percent, up from 60 percent in 1999);

• flexible work schedules (73 percent, up from 64 percent); and

• opportunities to learn new skills (68 percent, up from 62 percent).

An opportunity to develop skills was ranked as the most effective by workers under 30. While people in different demographic groups have different preferences, having the opportunity to develop skills was rated I the top-five across the board.