I would say that it could not be a bad impact. Consistently rewarding employees for good work or for endeavors that benefit the organization helps with staff morale as well as enhance the possibility of even more great work. Anyone and everyone likes to be acknowledged in a professional setting. Rewards can help to establish a positive work climate and an environment where employees enjoy to be present. The flip side to this coin would be a setting where employees are not regularly acknowledged for good work and positive contributions. This would help to bring down staff morale and create a setting where individuals do not feel appreciated, contributing to an overall sagging productivity and poor working climate.