Difference between Award and Reward

Meaning

An award is typically a formal recognition or honor bestowed upon an individual, organization, or entity for achieving excellence, outstanding performance, or significant contributions in a particular field, industry, or endeavor.

A reward is a tangible or intangible incentive or recognition given to an individual or group in recognition of specific actions, behaviors, or achievements.

Purpose

It is primarily aimed at recognizing and honoring achievements, excellence, or contributions in a specific field, industry, or endeavor.

It is designed to incentivize and reinforce desired behaviors, actions, or outcomes, and focuses on motivating individuals or groups to achieve specific goals or targets.

Process

It involves a competitive process where candidates are nominated, evaluated, and selected based on pre-defined criteria. There might be judges or panels involved in the decision-making process.

There’s a pre-determined set of criteria or performance metrics established by the organization or employer. The recipients are chosen based on meeting or exceeding these criteria.

Criteria

An award is granted based on excellence, outstanding performance, innovation, leadership, or other criteria relevant to the specific award category.

A reward is given for meeting pre-defined targets, goals, or expectations. It can be related to achieving specific sales figures, completing projects on time, or demonstrating exemplary behavior.

Form

It can take various forms such as certificates, trophies, plaques, medals, honors, titles, or monetary prizes. It often includes a formal ceremony or event for presentation.

It can be tangible (e.g., monetary bonuses, gift cards, vouchers) or intangible (e.g., public recognition, praise, promotions). The form may vary depending on organizational policies and practices.

Recipients

An award is given to individuals, organizations, or entities in recognition of their accomplishments, contributions, or achievements.

A reward is typically given to individuals or teams within an organization for specific actions, behaviors, or outcomes.

Timing

It is often presented on a periodic or one-time basis, such as annually, quarterly, or for lifetime achievements. It may involve nominations and evaluations over an extended period.

It can be given regularly (e.g., monthly or quarterly bonuses) or as one-time incentives (e.g., for achieving project milestones). It’s often tied to short-term goals or performance targets.

Impact

It can have a lasting impact on the recipient’s career or reputation as it is associated with prestige, honor, and public recognition.

It focuses on short-term performance improvements and does not have a lasting impact.