Reward and Recognitions across Multiple European Offices

For many companies that are keen on establishing offices, Europe is a viable option to take advantage of. The European bloc provides excellent trading opportunities and the diversity of cultures and traditions makes it all the more plausible to relocate and conduct operations.

However, owing to diversity in languages, legislation and cultural factors, utilising the correct reward and recognition programs for employees can be a daunting task and challenge. If used incorrectly, it can invite labour discord, lack of commitment and motivation to the job and an overall reflection of poor work culture and organisational prowess.

Business owners and HR managers thus need to stay cognisant and appreciate the sensitivity of work attitudes across different cultures and countries to be able to formulate a reward and recognition program that best fulfils their organisational requirements.

Difference between Reward and Recognition

Knowing the terms reward and recognition and their differences is the first aspect that managers and HR managers alike should understand. While both terms may be used interchangeably in some contexts, the differences matter most upon closer observation. In retrospect, rewards are any type of programs that are delivered by the company to employee on account of their performance and productivity. These rewards are exclusive to the salaries, but may have a monetary value attached to it.

A company can utilise a wide range of reward mechanisms to award the top performing employee or group of employees based on their performance. Among these are bonuses, profit sharing schemes and variable pay. A sales organisation, for instance, may reward their top performing sales group or employee with a bonus on meeting their annual targets as motivation.

Recognition programs, on other hand, are devoted to meeting the psychological needs appreciation and recognition of employees. The difference between reward and recognition programs can be subtle, however, the main focus of the latter is to boost appreciation rather than meet financial needs.

A company can choose from a number of recognition programs, such as using employee of the month/year, greater authority, or giving a higher role within the company. It is common for sales organisations to name their best employee as salesman of the month to provide encouragement and strong sense of emotional support.

How to Create a Global Reward and Recognition Program

Furthermore, creating any reward or recognition program should be done through digital means. The intricacies and factors that shape these programs in different country contexts require an efficient database of viewable data and other factors. Companies like have been established to provide unique employee management solutions.

The first step to creating a reward/recognition program in Europe is to first be mindful of the differences across each country. For instance, in the UK, reward programs are most common in department stores, but in Switzerland, the use of gift cards is not common. Companies therefore need to consider the cultural factors prevalent in these countries to see what reward and recognition programs they should employ.