Differences between Awards and Rewards

Awards vs. Rewards

Awards and rewards are often used interchangeably, but they represent distinct concepts in recognizing behavior and achievement. An award is a formal recognition bestowed upon an individual or group to honor a specific, often exceptional, accomplishment. It serves as a token of excellence in a particular field. In contrast, a reward is something given in return for a person's service, effort, or a desired action. It functions as an incentive to encourage and reinforce specific behaviors.

While both are forms of positive reinforcement, their application, formality, and intent differ. Awards are typically tied to significant achievements and are often presented publicly to celebrate success. Rewards can be more informal and are used to acknowledge effort or completion of a task, making them suitable for more frequent application.

Comparison Table

Category	Award	Reward
Basis	Given for exceptional performance, merit, or outstanding achievement.	Given for completing a task, desired behavior, or effort.
Nature	Formal and often public, carrying a sense of prestige and honor.	Can be formal or informal, public or private.
Purpose	To recognize and honor past excellence and significant accomplishments.	To motivate and encourage specific, often ongoing or future, actions and behaviors.
Form	Often symbolic and tangible, such as trophies, medals, certificates, or plaques.	Can be tangible or intangible, including money, gift cards, praise, or extra time off.
Frequency	Typically given less frequently, such as annually or quarterly, often after a selection process.	Can be given frequently, even daily, to reinforce positive actions.
Giver	Often decided by a committee, panel of judges, or high-level management.	Can be given by anyone, including managers, peers, or the organization itself.

Venn diagram comparing Differences between Awards and Rewards

Psychological Impact

The psychological effects of awards and rewards are linked to different types of motivation. Awards often appeal to intrinsic motivation by satisfying needs for esteem, a sense of accomplishment, and public recognition. Receiving an award can boost self-esteem and validate an individual's efforts and skills on a broad level. This form of recognition can reinforce a person's identity as a high achiever in their field.

Rewards are more closely tied to extrinsic motivation, where the incentive is an external outcome. The brain's reward system releases dopamine when a reward is received, which creates a feeling of pleasure and reinforces the behavior that led to it. This mechanism makes rewards effective for encouraging the repetition of specific desired actions and achieving short-term goals. While both are valuable, a balanced approach is often considered effective, using awards to celebrate major successes and rewards to encourage consistent positive behavior.