The Role of Rewards in Enabling Organization Innovation


Reward professionals overwhelmingly reported that incentive programs had a positive impact on encouraging innovation. Promotions are considered the most often utilized method to encourage innovation, followed by incentives, spot awards and non-financial recognition. Management’s future commitment to improving a culture of innovation is strong, with most increasing investment in innovation initiatives. Our findings provide strong support for using reward programs to encourage innovation. Based on those findings, the authors determined several key characteristics that make rewards programs more effective in supporting organizational innovation.


  • Background
  • Methodology
  • Research findings
  • Conclusion and recommendations
Contact Person/Organization: 

The HayGroup, Institute of Human Resources and Employment Relations, Loyola University Chicago 

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Publication Date: 

The Role of Rewards in Innovation

Collecting & Rewarding Employee Ideas with Mark Allen, Ph.D.