The Effects of Anticipation and Recognition Source in Employee Recognition Programs

We investigate via an experiment how two features of recognition programs influence how employees respond to recognition: (1) whether employees anticipate (i.e., are aware of) the potential for recognition and (2) the recognition source. We predict and find that the effect of recognition anticipation is moderated by the source of recognition, such that employees who receive unanticipated recognition from their direct manager will respond by exerting reciprocal effort to a greater extent than when recognition is anticipated and/or provided by the broader firm. Further, such effects occur even when recognition is relatively mundane such that the potential for recognition does not influence employees’ pre-recognition effort. Our study highlights the importance of considering effects of firms’ recognition system design choices on both “sides” of the recognition event (i.e., pre- and post-recognition). Further, our results inform firms’ recognition system design choices and highlight the potential for employees’ dysfunctional response to recognition. Data Availability: Data are available upon request. JEL Classifications: M52; J33; D23; C91.