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Learn the drawbacks of a points-based recognition programs and how they negatively affect employee motivation and collaboration.
Recognition programs are a common tool in organizations aimed at motivating and rewarding employees for their hard work. One such program that has gained popularity in recent years is the points-based recognition system. This system allows employees to earn points for various achievements and contributions, which they can then redeem for rewards.
While these programs are often seen as a simple and effective way to boost employee morale, they come with a variety of drawbacks that can diminish their long-term impact. In this article, we will explore the key disadvantages of points-based recognition programs and why organizations should reconsider relying on them as a primary form of employee recognition.
One of the most significant drawbacks of points-based recognition programs is their lack of personalization. In these systems, employees are typically rewarded based on the accumulation of points, with each point being worth the same amount regardless of the task or the employee’s personal preferences. While this system may seem fair on the surface, it overlooks the individual nature of employee motivation.
Employees are unique, with different needs, desires, and values. Some may appreciate a tangible reward such as a gift card, while others might prefer a more meaningful form of recognition, such as public acknowledgment or professional development opportunities. Points-based systems rarely take these personal preferences into account, which can result in rewards that feel impersonal and disconnected from the employee's true motivations.
When recognition is not tailored to the individual, it loses its effectiveness. Employees may start to view the rewards as generic, and as a result, the recognition may fail to make them feel truly valued. This lack of personalization can diminish the emotional impact of recognition, making it less likely that employees will feel genuinely appreciated.
Another significant disadvantage of points-based recognition programs is that they can undermine intrinsic motivation. Intrinsic motivation refers to the drive to perform a task for its own sake—because the task itself is enjoyable, fulfilling, or aligned with personal values. Points-based systems, however, rely heavily on extrinsic rewards, such as points that can be redeemed for prizes or perks.
When recognition is tied solely to external rewards, employees may begin to focus more on accumulating points than on the actual work itself. This shift in focus can lead to employees prioritizing actions that earn them points, rather than tasks that are meaningful, challenging, or aligned with the organization's long-term goals.
For example, an employee who is focused on earning points might opt for simple, low-effort tasks that provide quick rewards, rather than engaging in more complex and impactful work that requires time and energy but offers no immediate points. Over time, this can lead to a decline in the quality of work and a decrease in overall employee engagement.
Points-based recognition systems can also lead to inconsistent recognition. In some organizations, employees with higher visibility or certain roles are more likely to earn points, simply because they have more opportunities to contribute or be recognized. This creates a disparity in how employees are acknowledged, with those in more prominent positions receiving more points and rewards, while quieter or less visible employees may be overlooked.
This inconsistency can foster feelings of resentment and frustration among employees who feel their contributions are not being recognized or valued. Employees who do not accumulate as many points may begin to feel demotivated, even if their work is equally important to the organization's success. In the worst-case scenario, this can lead to disengagement and a decline in team morale.
Points-based recognition programs often incorporate elements of competition, encouraging employees to compete against one another to earn points and rewards. While this approach can be effective in increasing participation and engagement in the short term, it can also create a competitive environment that is not always healthy.
For some employees, the pressure to accumulate points can lead to unhealthy competition, with individuals prioritizing personal achievement over collaboration, neglecting the broader goals of the organization. They may take shortcuts, engage in manipulative behavior, or focus on less important tasks that offer more points rather than contributing to the organization’s strategic objectives.
Employees who fall behind in the points race may feel demotivated or excluded, and this sense of competition can damage team dynamics.
Instead of fostering a sense of unity and collective achievement, the points system can divide employees into winners and losers, undermining the collaborative spirit that many organizations strive for.
Over time, the rewards offered in points-based recognition programs can lose their appeal. If employees are able to earn points too easily or too frequently, the rewards may begin to feel trivial. A gift card worth $10 might have a significant impact when it is earned after a major accomplishment, but if employees are earning small rewards regularly, the value of the recognition diminishes.
This dilution of the rewards’ value can lead to a situation where employees no longer feel motivated by the rewards, as they become accustomed to receiving them. Instead of being seen as a meaningful gesture of appreciation, the rewards may come to be viewed as mere tokens that do not reflect the true value of the employee's contribution.
Points-based recognition programs often reward employees based on the quantity of tasks completed or milestones achieved. While this approach may seem fair, it can inadvertently encourage employees to focus on quantity rather than the quality of their work. Employees may opt to complete a high volume of tasks that earn points quickly, rather than dedicating time and effort to more complex, high-quality work that may not offer immediate rewards.
This emphasis on quantity can lead to a culture where employees are incentivized to prioritize fast, low-effort tasks over tasks that require critical thinking, innovation, or collaboration. As a result, the overall quality of work may suffer, and the organization’s long-term objectives could be compromised.
Points-based recognition programs can offer quick rewards and are often seen as an easy way to motivate employees. However, they come with a range of disadvantages that can undermine their effectiveness.
The lack of personalization, potential to undermine intrinsic motivation, inconsistent recognition, unhealthy competition, dilution of rewards’ value, and focus on quantity over quality are all significant concerns that organizations should consider when implementing or maintaining these programs.
Rather than relying solely on points-based systems, organizations should look for more meaningful and personalized ways to recognize employees. A balanced approach that integrates intrinsic and extrinsic motivation, fosters a culture of genuine appreciation, and encourages quality work over quantity can have a far greater long-term impact on employee engagement and satisfaction.
Interested in more effective employee recognition strategies? Schedule a demo with Assembly today to explore how we can help!
Points-based recognition programs can be ineffective due to their lack of personalization, potential to undermine intrinsic motivation, and the focus on quantity over quality.
Competition in points-based systems can lead to unhealthy rivalry, demotivation for those who fall behind, and a decrease in collaboration among employees.
Points-based systems may be unfair to quieter employees or those with less visibility, as they may not have the same opportunities to earn points as others.
Companies can improve recognition by offering personalized rewards, focusing on intrinsic motivation, and ensuring consistent, meaningful recognition for all employees.
Get the foundational knowledge on creating an employee recognition program that boosts employee engagement and helps them feel valued.
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There is study after study showing that employee recognition leads to increased engagement. This in return creates an environment where employees are happier and more motivated which increase productivity and reduces voluntary turnover significantly. In order to filled critical roles, companies tend to spend nearly twice the value of an annual salary. Assembly is an investment in your employees that supports your bottom line.
Yes, we will offer contracts for companies with longer-term agreements to help larger customers have more certainty around future costs.
The minimum agreement term is a 12-month subscription.
We do and for FREE! Any new customer needing further support to get started with Assembly to ensure you're set up for success can request custom onboarding support. Improving your employee experience is about much more than just using our amazing software; it’s about transforming your business to create a workplace that people love. That’s much easier to do with the personal support and advice from our passionate people experts.
At the time of redemption (when your employees exchange their points for a paid reward) you'll pay face value. If a reward is a $10 Amazon gift card, your cost will be $10. All paid rewards are billed for on a monthly basis.
The good news is that you don't have to pay for rewards upfront because we only charge you when points are redeemed, not when they're earned.
We offer discounts or educational or charitable organizations. In order to secure a discount, you'll first need to book a demo with a customer support specialist.
For all other organizations, we are willing to consider longer-term agreements in exchange for discounts. To set up annual plans or longer, you will need to book a demo with a customer support specialist.
If you're on a month to month plan, you can go here and cancel anytime. If you're having concerns or need help setting up your account for success, you can always book a demo with a customer support specialist.
If you're on a longer-term custom plan, you'll need to reach out to your customer support specialist to cancel your account or email us at support@joinassembly.com.
Great question! You can customize your core values to match your organization's to boost and track alignment. You can change your currency from the 🏆 emoji (our default) to any emoji of your choice. You can swap our logo for your own. You can also set up company culture rewards such as, "Lunch with the CEO," "Buy a book on us," and so much more!
While we recommend a peer to peer set up where anyone in your organization can give or receive recognition, you can set up Assembly however you want. If you need to limit the people who can give or receive recognition, that's perfectly fine and can be done from your Admin, here.
Assembly connects to the tools your employees use every day to offer an easy, seamless experience with minimal change management.
Assembly has integrations with HCM/HRIS systems like ADP, Google, Office 365, and Slack. We also integrate with communication tools like Slack and Teams so you and your employees can access Assembly wherever they work now.
That depends on the company's permissions set up. That said, over 90% of the employees on Assembly's platform are recognized on a monthly basis. That means nearly every employee across all of our customers are receiving regular recognition from their peers, managers, or leadership. We're extremely proud of this.
They are not required. You can use Assembly without having rewards set up. However, we don't recommend it if you intend to have a high adoption and usage rate. You can always keep the costs down by offering internal culture rewards that are fulfilled by you internally.
No, you can remove allowances from anyone or everyone. It's up to you but we do recommend using points whether they're worth a real dollar value or not. Companies that use points have a much higher engagement rate even if those points don't exchange for real dollars.
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