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Beyond technology — how recognition and rewards can shape a human-centric future workplace

Letlhokwa George Mpedi
By Letlhokwa George Mpedi
5 Dec 2024
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Recognition and rewards create an environment where goals can be achieved and dreams can be realised. This ensures that organisations are able to instil a culture of excellence, curiosity, and integrity.

We often discuss the future of work through just the lens of technology. This focus is usually on advancements such as automation, artificial intelligence (AI), digital transformation, and building digital skills. While these are undoubtedly critical drivers of change, they only tell part of the story.

If we consider this future through the lens of progress, then it could be argued that at a management level, we must emphasise recognition and rewards. Business leadership author Simon Sinek outlines that: “Recognition is not just about rewards; it’s about creating a culture of appreciation that inspires and empowers employees to excel.”

Rewards serve as tangible acknowledgements of effort and skill, inspiring individuals to continue growing and innovating within their roles. In fact, there is research that demonstrates the effectiveness of recognition and reward. It has been theorised that recognition is critical for positive psychological functioning, mental health, and performance.

In contrast, a lack of recognition can lead to feelings of undervaluation and decreased productivity. Appreciation activates brain regions tied to reward and motivation, particularly the prefrontal cortex. Gratitude thus stimulates the release of dopamine and serotonin, neurotransmitters associated with positive emotions, stress regulation, and resilience.

These effects are amplified when gratitude is expressed regularly, reinforcing neural pathways and fostering long-term emotional wellbeing. Intriguingly, this works for both giving and receiving recognition.

These studies make note of Abraham Maslow’s theories. In 1943, Maslow put forward his hierarchy of needs. Many of us are familiar with this structure from school. Under the category “esteem”, he theorises that there is a fundamental need for appreciation.

Maslow wrote: “We have what we may call the desire for reputation or prestige (defining it as respect or esteem from other people), recognition, attention, importance or appreciation.”

Appreciation


Increasingly, he argued, there is consensus that there is value in this practice. We are a world away from 1943, but this theory holds true. At the helm of an organisation as formidable as the University of Johannesburg, I know all too well that it is appreciation that helps to foster a culture of excellence.

A study by Kyle Luthans in 2000 found that personalised employee recognition is crucial for motivation and performance. He further found that prioritising recognition was crucial for productivity.

In the Fourth Industrial Revolution (4IR), there are correlations to be made between sustainable employee performance and rewards. In fact, this encourages the adoption of 4IR specific tactics — which is necessary for the future of work.

Foluso Adekanmbi and Wilfred Upkere outline that organisations that prioritise recognising and motivating the workforce to adopt digital skills enable institutions to stay competitive in the evolving technological landscape. The authors encourage upskilling initiatives, digital literacy training, certifications, and career-growth opportunities to be rewarded through praise, professional development opportunities, and flexible schedules.

Further, a McKinsey study found that high workforce engagement was encouraged in the 4IR through reward and recognition. Recognition and rewards create an environment where goals can be achieved and dreams can be realised. This ensures that organisations are able to instil a culture of excellence, curiosity, and integrity.

As Oprah Winfrey appropriately phrases it: “Recognition is the oxygen of the soul. It breathes life into our efforts and fuels our desire to keep pushing forward.”

By aligning recognition and rewards with the broader goals of an organisation, we ensure we are adequately preparing for a future that is not only technologically advanced, but also deeply human-centric. This is really what the future of work is about. DM

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