Learning and Development: A Comprehensive Guide

Posted by Erik van Vulpen

Learning and development (L&D) is one of the core areas of Human Resource
Management. In this article, we will give you a comprehensive guide to learning and
development. We answer what learning and development is, how to create learning
and development strategies, how to evaluate L&D effectiveness, and we list the
different jobs that make up the L&D field.

Find out what works and what doesn’t for your Learning & Development initiatives
with our full guide on Measuring Learning Effective.

What is learning and development?

Learning and development is a systematic process to enhance an employee’s skills,
knowledge, and competency, resulting in better performance in a work setting.
Specifically, learning is concerned with the acquisition of knowledge, skills, and
attitudes. Development is the broadening and deepening of knowledge in line with
one’s development goals.

The goal of learning and development is to develop or change the behavior of

individuals or groups for the better, sharing knowledge and insights that enable
them to do their work better, or cultivate attitudes that help them perform better
(Lievens, 2011). 

Learning, training, and development are often used interchangeably. However,

there are subtle differences between these concepts, which are shown in the table
below. 

Concept Description

The acquisition of knowledge, skills, or attitudes through experience, study, or

Learning
teaching. Training, development, and education all involve learning.

Training is aimed at teaching immediately applicable knowledge, skills, and

Training attitudes to be used in a specific job. Training may focus on delivering better
performance in the current role or to overcome future changes. 

Development is aimed at the long term. It revolves around the broadening or

deepening of knowledge. This has to fit within one’s personal development goals
Development
and the (future) goals of the organization. Development usually happens
voluntarily.

Education is a more formal way to broaden one’s knowledge. Education is often

Education non-specific and applicable for a long time and is especially relevant when a
person has little experience in a certain area.
In the next section, we’ll dive into how learning & development can be leveraged in
an organization.

Learning and development strategies

According to Dave Ulrich, the most important thing HR can give an employer is a
company that wins in the marketplace. The question is, what are the learning and
development strategies that help to do this?
A useful model that guides a learning and development strategy is created by van
Gelder and colleagues (ENG). Its original name translates to ‘Pedagogical Analysis’.
The model starts with the organizational starting situation and prior knowledge
based on which learning goals and objectives are defined. This information is used
as input for the subject matter, teaching methods, and learning methods and
activities. These lead to a certain result, which is monitored and evaluated. Based
on this evaluation, the goals and objectives are updated.

Based on this model, we identify four phases required to create an effective

learning and development process.

1. An analysis of training needs (starting situation)

2. Specification of learning objectives
3. Design of training content and method
4. Monitoring and evaluation
An effective learning and development strategy relies on a process in which one
continually moves through these four phases. Let’s examine them one by one.

Phase 1. Analysis of training needs

The first step is an analysis of the starting situations and prior knowledge to identify
training needs. We don’t want employees to learn for the sake of learning.
Otherwise, we would be happy to send them on a pottery course. Instead, we want
employees to acquire new knowledge, skills, and attitudes that are relevant for
their (future) function. This way learning is a way to create new business
capabilities.

 
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In other words, learning is a means to an end – it has a goal. Example goals could
be the development of digital capabilities in an analog firm that needs to transform,
building analytical capabilities to create more business value through analytics, or
simply making sure that everyone gets their mandatory certification in time so they
can continue to do their work. 

Identifying the learning goal requires you to analyze where the organization wants
to go and what skills are missing to get there. This happens in three parts.

1. Organizational analysis. In this phase, the short and long-term goals of the
organization are analyzed. The goal is to define the training needs that will help
the company realize its business goals. These goals need to align with the
organizational climate in order to be effective in the long term. For example, an
assertiveness training in a very hierarchical organization with a culture in which
personal initiative is not appreciated may not be effective – it may even be
counter-productive!
2. Function, task, or competency analysis. Besides the identified organizational
need, it is important to look at a function or task level. What are the
competencies and skills required to be successful in one’s job? The goal here is
to identify the most important knowledge, skills, and attitudes for employees to
be successful in their jobs, and to identify which of these are the easiest to learn.
3. Personal analysis. In this analysis, job performance is evaluated. Current
competencies and knowledge, performance, and skill levels are identified. The
key source for this analysis is oftentimes the employee’s performance
evaluation. The outcome of the analysis serves as input for the definition of the
training needs.
Using these three analyses, training goals can be specified. However, it is important
to ensure there is sponsorship and support within the organization for the
initiative. 

Sometimes, gaining support is easy, especially if there is an urgent organizational

need for learning and development. This makes building support easy. Other times
you will have to put a lot more effort into specifying the case for learning in order to
free up budget and ensure that employees get time off for learning. 

Phase 2. Specification of learning objectives

The training needs need to be translated into learning objectives. These objectives
serve as the starting point for the design of the training’s content and method.

According to Lievens (2011), a training objective consists of three elements.

1. The ability to realize specific objectives. For example, “as an HR business

partner, I need to be able to identify a manager’s strategic people needs”.
2. The conditions required for effective behavior. For example, “during the 30-
minute check-in with managers, I need to be able to identify their strategic
people needs and be able to summarize these to them to check if I identified
these needs correctly”.
3. A specific and measurable training goal. For example, “after every check-in
with a manager I have a double-checked the top 3 of this manager’s strategic
priorities”.
This way training goals become highly specific and measurable. This helps to create
an effective learning and development intervention aimed at improving these
skills. 
A learning intervention can have multiple learning objectives. Another example
objective for this training could be that the HR business partner is able to relate
each of the manager’s strategic objectives to HR policies that can assist the
manager. Because these objectives are closely related, they can be part of a single
training that will make the business partner a lot more successful in their role. 

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Phase 3. Design of the training material and method

In this phase, the teaching material and learning method are determined. This is
where the choices about the training material, teaching method, and learning
activities are made. This is often done together with an external trainer or training
provider, and ideally also with involvement from the trainee.

In addition to learning methods, techniques, pacing, setting, and many more factors
are determined.

Training can be trainer-centered or trainee-centered. Trainer-centered methods

include seminars, presentations, lectures, keynotes, and lessons. Trainee-centered
methods are more interactive and include case studies, role-playing, self-directed
lessons, on-the-job training, simulation, games, and so on. Effective training usually
includes a mix of methods.

Phase 4. Monitoring and evaluation

The last phase of the learning process is monitoring and evaluation. In this phase,
the learning objectives are evaluated and learning effectiveness is assessed. A very
useful model for evaluating learning effectiveness is Bloom’s taxonomy, which we
will explain later in this article. 

In addition, student evaluations are collected and reviewed and improvements are
made for future learning interventions.

When the training is seen as effective, it should result in a change in behavior. This
means that the starting situation and knowledge in the organization will be
changed for the next learning design.

The 70/20/10 Model Revisited

A popular approach to organizational learning is the 70/20/10 model.
The model was created by McCall, Lombardo & Eichinger of the Center for Creative
Leadership, a leadership development organization.

The 70/20/10 model is a general guideline for organizations seeking to maximize

organizational learning and develop new programs. The model is widely deployed
and often referred to when it comes to learning & development.

The model proposes that 70% of learning comes from work-based learning. This
informal learning happens through hands-on experience, where the employee
learns during their daily work. This learning-on-the-job happens during new tasks
and challenging assignments and through feedback from bosses and “water-cooler”
conversations with peers on the employee’s performance.

The next 20% represents developmental relationships. This involves employees

learning from each other, using social learning, peer feedback and peer coaching,
collaborative learning, peer mentoring, and other interactions with peers and
mentors. The final 10% of professional development comes from traditional
coursework and training in a formal, educational setting.
Although commonly used, the model has been criticized in the academic literature.
Notably, McCauly (2013) notes in a since-deleted blog post that if formal training
“accounts for only 10% of development, why do we need it?” Other examples
include:

 There is very little if no quantitative evidence for the 70/20/10 rule in the
scientific literature (Clardy, 2018).
 Analysis in the early 1980s found that the ratio for managers is 50/30/20. Zemke
(1985) notes that “the finding that 20% of a manager’s know-how comes from
formal training is remarkable since the average manager spends less than 1% of
his or her time in training”.
 The Bureau of Labor Statistics showed that about 55% of all workers needed
specific training to qualify for their current jobs (this was in the 1980s). About
29% came from school-based training, and 28% from formal, on-the-job training
(Loewenstein & Spletzer, 1998). This shows that formal training plays a much
more significant role in skill development.
 Loewenstein & Spletzer (1998), who re-analyzed the same data, concluded that
“formal and informal training are to some extent complementary, but formal
training may have a higher return”.
The safe conclusion is that the ratio heavily depends on the function. For example,
in some cases, all workplace learning occurs without formal learning (Clardy, 2018).
In other cases, years of formal learning and job-training is required to join a
specialist profession. For these kinds of jobs, formal learning will play a much more
prominent role. 

According to Clardy, “we need to move beyond the formal/informal distinction to

consider the best ways to design and structure any and all kinds of learning
experiences. […] By recognizing that virtually all workplace learning outside formal
programs can be structured and managed, the HRD profession can make a
significant step forward in recasting its role and increasing its reach in improving
individual, group, and organizational performance.”

Methods of learning
We already mentioned some methods of learning – but there are many more. We
will list a number of them below. However, this list is far from comprehensive.

 Lectures and seminars. This is a more formal setting often used in universities
with a lecturer and students. The setting inhibits interaction.
 Discussion groups. Highly interactive setting aimed at sharing viewpoints.
 Debate. Highly interactive setting aimed at convincing others of one’s
viewpoints.
 Case study and projects. These actively involve the participant and activate
them to come up with solutions and answers.
 Experiential activities. These involve active participation and are often used in
team building
 Role Play. A role is acted out or performed, for example as a technique to train
customer interaction.
 Simulation/Games. An increasingly popular and highly interactive way of
experimental learning. With the rise of virtual and augmented reality, this can be
made very realistic.
 Job shadowing. Working with another employee who has a different experience
to learn from them. This is a good way to learn and exchange ideas.
 Outdoor management development (OMD). A form of experiential activities. A
2001 study by Hamilton & Cooper showed that this could be effective. I couldn’t
resist including this quote from their paper: “50 percent of the participants were
experiencing high levels of pressure and reported low levels of mental wellbeing
pre and post attendance. It was concluded that a greater impact could be
achieved if the participants were not over‐pressured and/or not experiencing low
levels of mental wellbeing.” Those poor managers…
 Coaching. Coaching focuses on hands-on skill development. The coach is often
allocated and is the driving force. The coachee follows and learns.
 Mentoring. Mentoring is more strategic. The mentor is chosen by the mentee
and the process is also driven by the mentee. Mentoring goes beyond skills.
These are some of the most common methods of learning in an organization. There
are, however, many others. If you feel like we forgot an important one, feel free to
mention them in the comments and we’ll add them!

Learning and development effectiveness

One of the key themes when it comes to learning and development is learning
effectiveness. A key question often asked to the L&D professional is: “what is the
return on learning?”, or “how effective are our learning programs?”. These
questions are hard to answer.

The image below shows part of this dilemma. However, the effectiveness of
learning remains a contentious topic.
A method to evaluate learning effectiveness is Bloom’s taxonomy. Benjamin Bloom
edited the Taxonomy of Educational Objectives: The Classification of Education Goals,
which was later adapted by Pohl (2000).

The taxonomy captures different levels of information processing, starting at

knowledge recollection, going on to comprehension, application, analysis,
evaluation, and creation (the synthesis of existing knowledge to create new
knowledge). The assumption here is that to analyze information, one needs to be
able to remember it, understand it, and apply it.

This taxonomy is often used to specify what level of information processing is

relevant to do a job, for example in training development, and to evaluate learning
effectiveness. If someone has to be able to create or synthesize knowledge (e.g., an
academic writing a paper on a topic), the approach to mastering the relevant
information will be different than if someone only needs to understand (e.g.,
remembering Latin words) or apply the knowledge (e.g., conjugate Latin verbs). 

The same holds true for work. Creating new and effective HR compensation policies
requires a different level of information processing than simple salary
administration. The training (and experience) required to create new policies versus
understanding compensation and benefit ratios will therefore also be quite
different.
A lot more can be said about Bloom’s taxonomy and learning effectiveness. For
more information, and to learn how the model can tie in with learning objectives,
we recommend this article published on the website of the University of Arkansas.

Learning and development jobs

Let’s conclude this guide on learning and development with the different job roles
that are part of the learning and development team. Please note that the exact
responsibility per role will differ between organizations. Typical learning and
development jobs include:

 L&D specialist. The L&D specialist often occupies an operational role, focusing
on analyzing learning needs, specifying role competencies, L&D budget
distribution, and providing learning advice to employees.
 L&D manager. The Learning and Development Manager has a more tactical role,
focusing on analyzing learning needs at a higher level, specifying core
organizational competencies, L&D budget allocation, and distribution between
departments and teams.
 L&D director. The L&D director has a strategic role, focusing on analyzing
organizational needs for development, aligning L&D activities with organizational
strategy, drafting the L&D strategy, and ensuring budget to execute this strategy.
 L&D consultant. The L&D consultant does all of the above in a consulting
capacity. Depending on the role and seniority of the consultant, these activities
can be operational or strategic.
Conclusion
That’s it for this guide on learning and development. We covered what learning,
training, and development are, how L&D strategies can effectively be deployed in
organizations, different teaching methods, and we covered the topic of learning
effectiveness.

There is a lot more to say about teaching methods, critical educational resources,
skills required to train, the different shapes and forms of experimental learning,
learning analytics, and much more. We cannot cover all of those in a single article –
but we can in a full course!

Together with Nadeem Khan, the Academy to Innovate HR (AIHR) is in the process

of developing a course on learning and development that will touch on all these
topics and more.
FAQ
What is learning and development?
Learning and development is a systematic process to enhance an employee’s
skills, knowledge, and competency, resulting in better performance in a work
setting.

Employee Reward and Recognition Systems

In a competitive business climate, more business owners are looking at improvements in quality
while reducing costs. Meanwhile, a strong economy has resulted in a tight job market. So while
small businesses need to get more from their employees, their employees are looking for more
out of them. Employee reward and recognition programs are one method of motivating
employees to change work habits and key behaviors to benefit a small business.
REWARD VS. RECOGNITION
Although these terms are often used interchangeably, reward and recognition systems should be
considered separately. Employee reward systems refer to programs set up by a company to
reward performance and motivate employees on individual and/or group levels. They are
normally considered separate from salary but may be monetary in nature or otherwise have a cost
to the company. While previously considered the domain of large companies, small businesses
have also begun employing them as a tool to lure top employees in a competitive job market as
well as to increase employee performance.
As noted, although employee recognition programs are often combined with reward programs
they retain a different purpose altogether. They are intended to provide a psychological—
rewards a financial—benefit. Although many elements of designing and maintaining reward and
recognition systems are the same, it is useful to keep this difference in mind, especially for small
business owners interested in motivating staffs while keeping costs low.
DIFFERENTIATING REWARDS FROM MERIT PAY AND THE PERFORMANCE
APPRAISAL
In designing a reward program, a small business owner needs to separate the salary or merit pay
system from the reward system. Financial rewards, especially those given on a regular basis such
as bonuses, profit sharing, etc., should be tied to an employee's or a group's accomplishments and
should be considered "pay at risk" in order to distance them from salary. By doing so, a manager
can avoid a sense of entitlement on the part of the employee and ensure that the reward
emphasizes excellence or achievement rather than basic competency.
Merit pay increases, then, are not part of an employee reward system. Normally, they are an
increase for inflation with additional percentages separating employees by competency. They are
not particularly motivating since the distinction that is usually made between a good employee
and an average one is relatively small. In addition, they increase the fixed costs of a company as
opposed to variable pay increases, such as bonuses, which have to be "re-earned" each year.
Finally, in many small businesses teamwork is a crucial element of a successful employee's job.
Merit increases generally review an individual's job performance, without adequately taking into
account the performance within the context of the group or business.
DESIGNING A REWARD PROGRAM
The keys to developing a reward program are as follows:
 Identification of company or group goals that the reward program will support
 Identification of the desired employee performance or behaviors that will reinforce the
company's goals
 Determination of key measurements of the performance or behavior, based on the
individual or group's previous achievements
 Determination of appropriate rewards
 Communication of program to employees
In order to reap benefits such as increased productivity, the entrepreneur designing a reward
program must identify company or group goals to be reached and the behaviors or performance
that will contribute to this. While this may seem obvious, companies frequently make the
mistake of rewarding behaviors or achievements that either fail to further business goals or
actually sabotage them. If teamwork is a business goal, a bonus system rewarding individuals
who improve their productivity by themselves or at the expense of another does not make sense.
Likewise, if quality is an important issue for an entrepreneur, the reward system that he or she
designs should not emphasize rewarding the quantity of work accomplished by a business unit.
Properly measuring performance ensures the program pays off in terms of business goals. Since
rewards have a real cost in terms of time or money, small business owners need to confirm that
performance has actually improved before rewarding it. Often this requires measuring something
other than financial returns: reduced defects, happier customers, more rapid deliveries, etc.
When developing a rewards program, an entrepreneur should consider matching rewards to the
end result for the company. Perfect attendance might merit a different reward than saving the
company $10,000 through improved contract negotiation. It is also important to consider
rewarding both individual and group accomplishments in order to promote both individual
initiative and group cooperation and performance.
Lastly, in order for a rewards program to be successful, the specifics need to be clearly spelled
out for every employee. Motivation depends on the individual's ability to understand what is
being asked of her. Once this has been done, reinforce the original communication with regular
meetings or memos promoting the program. Keep your communications simple but frequent to
ensure staff members are kept abreast of changes to the system.
TYPES OF REWARD PROGRAMS
There are a number of different types of reward programs aimed at both individual and team
performance.
Variable Pay
Variable pay or pay-for-performance is a compensation program in which a portion of a person's
pay is considered "at risk." Variable pay can be tied to the performance of the company, the
results of a business unit, an individual's accomplishments, or any combination of these. It can
take many forms, including bonus programs, stock options, and one-time awards for significant
accomplishments. Some companies choose to pay their employees less than competitors but
attempt to motivate and reward employees using a variable pay program instead. Good incentive
pay packages provide an optimal challenge, one that stretches employees but remains in reach. If
too much is required to reach the goal, the program will be ignored.
Bonuses
Bonus programs have been used in American business for some time. They usually reward
individual accomplishment and are frequently used in sales organizations to encourage
salespersons to generate additional business or higher profits. They can also be used, however, to
recognize group accomplishments. Indeed, increasing numbers of businesses have switched from
individual bonus programs to one which reward contributions to corporate performance at group,
departmental, or company-wide levels.
According to some experts, small businesses interested in long-term benefits should probably
consider another type of reward. Bonuses are generally short-term motivators. By rewarding an
employee's performance for the previous year, they encourage a short-term perspective rather
than future-oriented accomplishments. In addition, these programs need to be carefully
structured to ensure they are rewarding accomplishments above and beyond an individual or
group's basic functions. Otherwise, they run the risk of being perceived of as entitlements or
regular merit pay, rather than a reward for outstanding work. Proponents, however, contend that
bonuses are a perfectly legitimate means of rewarding outstanding performance, and they argue
that such compensation can actually be a powerful tool to encourage future top-level efforts.
Profit Sharing
Profit sharing refers to the strategy of creating a pool of monies to be disbursed to employees by
taking a stated percentage of a company's profits. The amount given to an employee is usually
equal to a percentage of the employee's salary and is disbursed after a business closes its books
for the year. The benefits can be provided either in actual cash or via contributions to employee's
401(k) plans. A benefit for a company offering this type of reward is that it can keep fixed costs
low.
The idea behind profit sharing is to reward employees for their contributions to a company's
achieved profit goal. It encourages employees to stay put because it is usually structured to
reward employees who stay with the company; most profit sharing programs require an
employee to be vested in the program over a number of years before receiving any money.
Unless well managed, profit sharing may not properly motivate individuals if all receive the
share anyway. A team spirit (everyone pulling together to achieve that profit) can counter this—
especially if it arises from the employees and is not just management propaganda.
Stock Options
Previously the territory of upper management and large companies, stock options have become
an increasingly popular method in recent years of rewarding middle management and other
employees in both mature companies and start-ups. Employee stock-option programs give
employees the right to buy a specified number of a company's shares at a fixed price for a
specified period of time (usually around ten years). They are generally authorized by a
company's board of directors and approved by its shareholders. The number of options a
company can award to employees is usually equal to a certain percentage of the company's
shares outstanding.
Like profit sharing plans, stock options usually reward employees for sticking around, serving as
a long-term motivator. Once an employee has been with a company for a certain period of time
(usually around four years), he or she is fully vested in the program. If the employee leaves the
company prior to being fully vested, those options are canceled. After an employee becomes
fully vested in the program, he or she can purchase from the company an allotted number of
shares at the strike price (or the fixed price originally agreed to). This purchase is known as
"exercising" stock options. After purchasing the stock, the employee can either retain it or sell it
on the open market with the difference in strike price and market price being the employee's gain
in the value of the shares.
Offering additional stock in this manner presents risks for both the company and the employee. If
the option's strike price is higher than the market price of the stock, the employee's option is
worthless. When an employee exercises an option, the company is required to issue a new share
of stock that can be publicly traded. The company's market capitalization grows by the market
price of the share, rather than the strike price that the employee purchases the stock for. The
possibility of reduction of company earnings (impacting both the company and shareholders)
arises when the company has a greater number of shares outstanding. To keep ahead of this
possibility, earnings must increase at a rate equal to the rate at which outstanding shares increase.
Otherwise, the company must repurchase shares on the open market to reduce the number of
outstanding shares.
One benefit to offering stock options is a company's ability to take a tax deduction for
compensation expense when it issues shares to employees who are exercising their options.
Another benefit to offering options is that while they could be considered a portion of
compensation, current accounting methods do not require businesses to show options as an
expense on their books. This tends to inflate the value of a company. Companies should think
carefully about this as a benefit, however. If accounting rules were to become more conservative,
corporate earnings could be impacted as a result.
GROUP-BASED REWARD SYSTEMS
As more small businesses use team structures to reach their goals, many entrepreneurs look for
ways to reward cooperation between departments and individuals. Bonuses, profit sharing, and
stock options can all be used to reward team and group accomplishments. An entrepreneur can
choose to reward individual or group contributions or a combination of the two. Group-based
reward systems are based on a measurement of team performance, with individual rewards
received on the basis of this performance. While these systems encourage individual efforts
toward common business goals, they also tend to reward under-performing employees along
with average and above-average employees. A reward program which recognizes individual
achievements in addition to team performance can provide extra incentive for employees.
RECOGNITION PROGRAMS
For small business owners and other managers, a recognition program may appear to be merely
extra effort on their part with few tangible returns in terms of employee performance. While
most employees certainly appreciate monetary awards for a job well done, many people merely
seek recognition of their hard work. For an entrepreneur with more ingenuity than cash available,
this presents an opportunity to motivate employees.
Nor will the entrepreneur be far off the mark. As Patricia Odell reported, writing for Promo,
"Cash is no longer the ultimate motivator." Odell cited data from the Forum for People
Performance Management and Measurement at Northwester University—which had discovered
that non-cash awards tend to be more effective; the exception was rewarding increasing sales.
"The study found," Odell wrote, "that non-cash awards programs would work better than cash in
such cases as reinforcing organizational values and cultures, improving teamwork, increasing
customer satisfaction and motivating specific behaviors among other programs."
In order to develop an effective recognition program, a small business owner must be sure to
separate the program from the company's system of rewarding employees. This ensures a focus
on recognizing the efforts of employees. To this end, although the recognition may have a
monetary value (such as a luncheon, gift certificates, or plaques), money itself is not given to
recognize performance.
Recognition has a timing element: it must occur so that the performance recognized is still fresh
in the mind. If high performance continues, recognition should be frequent but cautiously timed
so that it doesn't become automatic. Furthermore, like rewards, the method of recognition needs
to be appropriate for the achievement. This also ensures that those actions which go farthest in
supporting corporate goals receive the most attention. However, an entrepreneur should remain
flexible in the methods of recognition, as different employees are motivated by different forms of
recognition. Finally, employees need to clearly understand the behavior or action being
recognized. A small business owner can ensure this by being specific in what actions will be
recognized and then reinforcing this by communicating exactly what an employee did to be
recognized.
Recognition can take a variety of forms. Structured programs can include regular recognition
events such as banquets or breakfasts, employee of the month or year recognition, an annual
report or yearbook which features the accomplishments of employees, and department or
company recognition boards. Informal or spontaneous recognition can take the form of privileges
such as working at home, starting late/leaving early, or long lunch breaks. A job well done can
also be recognized by providing additional support or empowering the employee in ways such as
greater choice of assignments, increased authority, or naming the employee as an internal
consultant to other staff. Symbolic recognition such as plaques or coffee mugs with inscriptions
can also be effective, provided they reflect sincere appreciation for hard work. These latter
expressions of thanks, however, are far more likely to be received positively if the source is a
small business owner with limited financial resources. Employees will look less kindly on
owners of thriving businesses who use such inexpensive items as centerpieces of their reward
programs.
Both reward and recognition programs have their place in small business. Small business owners
should first determine desired employee behaviors, skills, and accomplishments that will support
their business goals. By rewarding and recognizing outstanding performance, entrepreneurs will
have an edge in a competitive corporate climate.
BIBLIOGRAPHY
Brandi, JoAnna. "9 Ways to Keep Employees Engaged." Entrepreneur. 12 April 2005.
Grimaldi, Lisa. "Study proves recognition pays off." Meetings & Conventions. August 2005.
Henneman, Todd. "Daniels' Scientific Method." Workforce Management. 10 October 2005.
Odell, Patricia. "Live from the Mo Show: Non-Cash Awards More Effective." Promo. 28
September 2005.
Parker, Owen, and Liz Wright. "Pay and Employee Commitment: The Missing Link." Ivey
Business Journal. January 2001.
Rauch, Maggie. "Communications Gap: Majority of businesses give managers little guidance on
recognition." Incentive. September 2005.
Ventrice, Cindy. "Make Their Day! Employee Recognition That Works." Berrett-Koehler
Publishers. April 2003.