Reward and Recognition Policy

reward and recognition policy

Importance of Reward and Recognition Programme incorporate


 

Employee good work attracts not only job appreciation but something more than that. This something in corporate can be named as Reward. As per the latest trend employer appreciate good work done by employees in a special way. The ways of sharing their appreciation however differ. In order to have a systematic approach towards the appreciation of rewards, there is a need for reward and recognition policy.

Employees besides wanting a good salary, friendly environment, growth opportunity also want to be appreciated for the outstanding work performed by them. Reward and recognition play a major role in attracting and retaining talent within the organization. It not only acts as a morale booster but also promotes 3 P's i.e. Productivity, positivity, and promotion. Such kind of programme builds up motivation in the workplace. However, an effective reward and recognition programme cannot work in isolation. It needs to have collaboration from employee managers and senior management. The role each one of them plays in making reward and recognition a success is explained below.
 
reward and recognition -hrhelpboard
Recognition can be given by a large number of ways. Praising is inexpensive. A good reward and recognition programme should be.
 
Significant:  Rewards must be based on values, goals, and priority.
 
Flexible:  Reward programme must be flexible. It must be as per the demand of time and place.
 
Personal touch:  Whatever is the kind of reward formal or informal, it is necessary to have a personal touch.
 
Timely: An employee should be rewarded on time else credibility is eroded with the passage of time.
 
Genuine:  The appreciation must be genuine.
 
Disclaimer: The content prepared has been created with the greatest care. These policies have been prepared for the sample. However, for accuracy and completeness, hrhelpboard.com cannot guarantee. The user is therefore requested to professionally check or to have professionally checked the suitability of all content for its use.

Sample Policy For Reward and Recognition at Workplace

                        A quick Guide ,Templates for Example 


Index

  1. Aim
  2. Purpose
  3. Scope
  4. Definitions
  5. Component of reward structure
  6. Steps for development of effective reward structure
  7. Why reward employees
  8. Parameters for reward programme
  9. Most important steps for reward and recognition
  10. Key responsibilities
  11. Reward and incentive
  12. Nominations
  13. Selection
  14. Effectiveness of policy
  15. Review of policy.
 
Aim: The major aim of reward and recognition policy is to attract and retain the best talent. In order to attract and retain it becomes important to recognize the efforts put in by the employee in terms of performance, attitude, and achievements.
 
Purpose: The purpose of the rewarding performance is to build up an organizational culture where good work done by employees is valued and their tremendous efforts are recognized.
 
Scope:  This policy is applicable to all the regular employees of the company.
 
Definitions:
Reward: Cash or noncash award given for outstanding performance by the employee. 
Reward and recognition: Reward programme developed and communicated by the HR department.
 

An Important component of a reward programme

  • Behaviour to be recognized must be linked with organizational mission.
  • All staff members, managers, senior management must be trained well for the implementation of an effective reward programme.
  • The programme must be communicated well at all levels.
  • Analysis and evaluation of programme effectiveness.

Steps for the development of an effective reward programme:

In order to give motivation to employees in the workplace, an effective programme should be designed.
 
1. Target the audience: One reward programme cannot fit everywhere. It must be designed keeping in mind the audience. Every employee is different what motivates one in the workplace might not motivate the other. Though the reward programme can be customized individually, however the following need to be considered before designing an effective reward and recognition policy.
 
a) What are the different types of jobs done by employees?
b) The Total number of employees in the organization.
c) What motivates them individually? 
d) What type of recognition is being provided by the company?
e) Does appreciation of employee’s matters for them?
f) How reward and recognition programme is communicated to employees.
 
2. Choose the Target: 
 
a) In designing an effective reward programme choose your target carefully. Have a look at the type of behaviour which one wants to improve through the reward and recognition policy. The behaviour, however, should be measurable for instance decrease in cost.
b) Consider the various types of challenges being faced by your employee. How rewarding their work motivates them to do better work.
c) Be reasonable while setting the goals for employees. Too many goals do not produce any fruitful result.
d) Are the goals practically achievable?
 

 The following type of performance can be rewarded:

 
1. Safety  achievement
2. Long-term employment
3. Exemplary attendance
4. Productivity
5. Innovation
6. Excellent customer service
7. Outstanding performance
8. Positive attitude
9. High level of skills
10. Team player
11. Initiative to get the job done.
 
Carefully design what type of performance you want to reward. Once decided to communicate your programme to your employees.
 
3. Know your budget :  
 
In case reward and recognition programme is very fancy you might not be able to run it for a long time. So before communicating your reward programme to your employees define your budget. Following should be considered in designing your budget:
a) What kind of advertisement /Promotion you plan for reward programme.
b) How many recipients for your reward and recognition programme.
c) What is going to be the cost of the reward programme?
d) Is it going to be formal or informal reward programme?
e) What is going to be the cost of administration?
f) The cost of training managers and supervisors.
 
4. Determining the criterion:  
 
a) The criteria must be chosen with due consideration.
b) The timeframe in which the target to be achieved must be communicated to employees.
c) The criterion chosen for employees must be viewed as fair and quantifiable.
 
5. Choose the type of award: 
 
Choose the type of award you want to give your employees. The Success of the programme depends majorly on how you want to reward performance. Choosing the type of reward is an important step.
 
6. Communicate how your company is rewarding employees? 
The communication must be from the top to the bottom of the organizational structure.  
 
7. Evaluate the programme:  In order to know the effectiveness of the programme. Try to understand
 
a) The employee’s reaction towards the reward and recognition programme.
b) How well is the programme understood?
c) How has the behaviour changed
d) Overall effectiveness of reward programme.
 

 Why reward Employees?

The reasons to reward employees can be explained as follows:
1. Boost employee morale: Appreciation of staff boost up employee morale. They tend to work with better efforts and sincerity.
2. Increase in productivity: Rewarded employees are dedicated to working with utmost efficiency thus result in increased productivity. 
3. More engaged employees: Employee engagement increases when their efforts are recognized.
4. Reduces wastage: This is another advantage of the reward programme that it results in the reduction of wastage.
5. Better retention: Recognizing and rewarding employee performances attract and retain quality talent.
6. Greater employee satisfaction: When employees and their work are valued, their satisfaction and productivity rises, and they are motivated to maintain or improve their good work.
7. Reduce stress: Good reward programme Increases positivity in the environment and can also be called one of the stress busters.
8. Higher Loyalty: Employee loyalty towards an organization increases if the good work done by employees is appreciated and rewarded.
9. Better Teamwork: Boosting up employee morale by rewarding their performance increases employees spirit to work together in a team.
10.Lesser absenteeism: Good reward programme reduces absenteeism.
 

Parameters for reward programme: 

The various parameters to be taken into consideration for rewarding performance are as follows:
1. Level of job performance ability of an individual thereby rewarding performance of an individual.
2. Extraordinary efforts put in by an employee in a given task.
3. The Longer stay in service of the company.
4. The Individual with special skills is recognized and rewarded.
5. The Employee who has done a job well despite being complex such employees are appreciated and awarded.
6. Exhibition of skills that helps in getting work done more effectively.
7. Exhibition of leadership skills is another way to reward employees. Leadership skills used in getting the complex job done demand rewards.
8. Contribution to process improvement.
9. Doing service above the normal routine.
10. One time outstanding effort which helped the company as a whole.
11. Initiative to work on special projects.
12. Initiative in wastage reduction.
13. Helping colleagues even after fulfilling one’s own duty.
14. Higher quality works consistently.
15. Exceptional dependability.
16. Any extraordinary work is done which has increased the image of the department.
17. Exhibition of team spirit.
18. Exceptional work was done by the team as a whole.
19. The Exceptional contribution of the entire team to get the work done.
20. Outstanding work by going an extra mile.
21. Innovation in work done in routine.
22. Excellent response to customer care.
23. Perfect attendance.
24. High level of extraordinary work is rewarded.
25. Education, training, and development.
 

Most important steps for reward and recognition:

1. Make all regular employee of the organization eligible under the reward and recognition programme.
2. Clearly choose the parameters with specific information that will be rewarded and recognized.
3. Knowing the parameters clearly will let the employee do work with more effectiveness and sincerity.
4. Meeting the reward criterion is a tough task and the employer must consider all factors that affect the performance of the employee. However, all the employees cannot be shortlisted for reward in such case random picks and choose to be done.
5. The recognition must occur as close to the performance of actions as possible so that the behaviour that attract reward is reinforced. Such behaviour brings in Motivation in the workplace.
6. The criterion for choosing employees should have a mix of Peers, immediate managers, HOD, and director said.
7. The communication of effective reward and recognition policy plays a very important role. It must be communicated well to the employees.
8. There must be an alignment of organizational culture with the reward programme.
9. Recognition is most effective when it takes place regularly.
10. The immediate managers are requested to be aware of their responsibility to provide effective feedback to employees and they must also give positive reinforcement t the employees.
11. The immediate manager must have clarity on the ways to reward employees. They should know how and when to reward employees?
12. Managers must be able to motivate and inspire their employees.
13. The art of communicating or communication expectations and goals must be known to the managers.
14. Clarity on explanation regarding how the programme works and how the employee can receive recognition.
15. Clear communication to employees with an understanding of how they impact organization goals, mission, and success.
 

Key Responsibilities

reorganization -hrhelpboard

Rewards and incentives :

Rewards and incentives are beneficial both for the employee as well as the employer. When employees are recognized for their best performance and productivity employees have increased morale, job satisfaction and increased involvement in the organization. With the help of workplace rewards and incentives, both employer and employee enjoy a productive and positive work environment. 
 

What does incentive mean?

a) Incentive means something which encourages a person to do something.
b) the Incentive is a performance linked reward to improve motivation and productivity of the employee.
c) Incentive includes the extra pay for exceptionally good rewarding work in addition to regular wages of the job.
 

Types of Incentive: 

The types of incentive include the monetary incentive and Non- monetary incentive.
Monetary Incentive:  Monetary incentive means a kind of incentive that pays for good performance of employee through Money. Monetary incentive includes Merit Pay, profit sharing plan, Pay and allowance, commission, stock option, bonus, suggestion plan and perks, fringe benefits and perquisites. 
 
Non-Monetary Incentive Non-monetary incentive is given to an employee for best performance through perks and opportunities. These are valuable to the employee as they result in the increased morale of the employee as they get to learn new skills and can pursue the advance opportunity. It is not necessary that only money is the motivator, when the Non-monetary incentive is rewarded to the employee it results in satisfaction of self-actualization and self-esteem needs.
Rewarding work is always a strong motivator. 
 
Non-monetary incentives include 2 types of rewards
 

Formal and Informal rewards

Formal rewards:Formal rewards are being used for rewarding employee performance within set defined guidelines. There are various ways to recognize employees work in formal ways. For example  Career advancement, job enrichment, employees participation, diamond star, Year of service award, peer to peer recognition, Celebration chart, Formal letter of appreciation, team trophy, one dedicated corner in company's newsletter etc. Formal rewards are an alternative to the spontaneous rewards which are given on an immediate basis, formal rewards are more planned as compared to non-formal rewards.
 
In Formal Rewards:This is the most effective means of rewarding and recognizing the efforts of employees on an immediate basis. It is generally given in the form of  Personal or verbal thank you, an email or personal note to the individual, sharing achievement in team meetings, a day off for a job 
 
well done, Give an employee more autonomy, Offer flexible work schedules or work options, Giving employees  with a computer upgrade, mentor other colleagues etc.
 
reward policy - hrhelpboard
 

reward and recommendation hrhelpboard  rewards and awards -hrhelpboard  

Informal Rewards:

rewards and awards policy -hrhelpboard

Formal Recognition:

REWARDING  POLICY FOR EMPLOYEE -HRHELPBOARD

REWARDS POLICY FOR EMPLOYEE -HRHELPBOARD

  REWARDS AND PRIZE POLICY FOR EMPLOYEE

 

Budget: Budget will be allocated by the finance department. The finance department is responsible for allocation of budget in a fair and equitable manner that all employees have equal opportunity to benefit from the reward. The Budget may be reallocated as appropriate. 
 

Nomination Process: 

rewards -hrhelpboard 

prize in company - hrhelpboard

Selection Criteria:

Selection criteria must be documented as part of the Employee Reward and Recognition Program. The Finance department may designate an individual or committee, working in conjunction with the Human Resources Representative, to develop specific award standards and selection criteria, and to nominate or select award recipients.

The Effectiveness of policy: 

The effectiveness of policy is monitored by the HR team to ensure the policy is applied fairly.

Review of the policy: 

The policy may be reviewed at any time on request of staff or management but will be reviewed yearly automatically. 

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Sample Policy - II

rewards sample policy 2 -hrhelpboard

Employee Reward and Recognition Policy for Employees

 

Purpose: reward and recognition policy is designed to encourage employees whose performance is outstanding either individually or through teams that contribute to the overall objective of the organisation and also to lay down guidelines regarding” how to reward employees”.

 

   purpose of reward and recognition

 

 

Objective: The objective of reward and recognition policy is to promote motivation in the workplace and to build up culture that is conducive for achieving organisational objective and to make employees feel valued and appreciated for their good work done.  It is meant
 
  • To promote reward and recognition of the employees
  • To appreciate and recognize value added contribution of the employees.
  • To acknowledge individual and team contribution.
  • Timely appreciation to foster work quality.
  • To award staff appreciation for the good work done

 

   reward and recognition  -principle-hrhelpboard

      Principle:

     Basic principle followed for reward and recognition policy is                 mentioned below:

  1. To promote  Staff appreciation
  2. To enhance motivation in the workplace
  3. To design an effective Incentive Programme
  4. To  value the effective work done by rewarding work
  5. Consistent reward and incentive scheme with a defined objective.
  6. Empowering employees by  rewarding performance
  7. Reward to nurture a sense of ownership amidst employees.

 

Eligibility for Reward and Recognition

Following criteria must be fulfilled before an employee become eligible for reward and recognition

  1. Employee must be a regular employee of the company
  2. Should  be  in service of the company for last 6 months

 

 reward and recognition - eligibility-hrhelpboard

 

Qualifying outcome for reward and recognition

  1. Exhibition of organisational mission and goals while performing the duty
  2. Exceptional contribution in increasing motivation in the workplace
  3. Efficiency in Process and Practice which leads to rewarding work
  4. Exceptional team building skills
  5. Innovative approach towards problem solving based on organisational values
  6. Cost reduction which is essential for an effective incentive programme
  7. Increment in revenue generation
  8. Excellent customer service
  9. Contribution in building team members competencies
  10. Excellence in all spheres of work done which results in Staff appreciation
  11. Contribution in employee engagement initiative
  12. Contribution  in achieving organisational objective by performing  service above normal duty
  13.  Going out of ways to form positive and inclusive work environment
  14. Exceptional contribution  in CSR  related activities
  15. Developing  new work methods that reduce waste
  16. Individual possessing highest  talent are rewarded
  17. Going the extra mile by performing duties when department is short staffed.
  18.  Highly efficient in process and practice

 

           

 

 

 

 

 

  reward and recognition -qualifying outcome -hrhelpboard

reward and recognition at workplace

Reward and Incentives at the workplace

Reward and incentives are beneficial both for the employee and the employer. It not only increase motivation in workplace but also energises employee to work with proficiency. Generally this question do occupy minds of managers that how to reward employee?  Rewarding performance is an art. This reward and recognition policy is designed for employee rewards and recognition programme. Such Staff appreciation results in increasing employee efficiency and an increase in sales and productivity. An effective incentive programme must include both monetary as well as non monetary incentives. .With rewards and incentive employer and employee enjoy a positive and productive work environment.  An incentive programme which recognizes individual achievement in addition to team performance can provide extra incentive for employees.

 

  

 Ways or Types of reward & incentives:

Monetary Incentive Reward - Various types of monetary incentive reward includes Variable pay, bonus, profit sharing and Stock Option. Details on the same are mentioned below.

 

 Ways /types of reward - hrhelpboard

Variable Pay:  Variable pay can be tied to the performance of the company, any organisational accomplishment or an individual performance or both. It is given as one time reward. Still it is one of the motivational programmes for reward and recognition. Details of variable pay can be referred in Compensation and benefits policy. 

Bonuses: Bonus is used to reward individual accomplishment. It is one of the most commonly used types of incentive. By rewarding performance of an employee for previous year, bonus gives motivation in workplace.

Profit Sharing: In this money is disbursed by taking a certain percentage of employee salary. This is credited to employee account at the end of financial year.  It is given in Cash form. This employee reward motivates an employee to work beyond normal duty to improve upon business performance. However these types of incentive require an employee to vest certain number of years with the organisation before receiving any money.

Stock Options:  This reward and recognition method is very popular nowadays. In these types of incentive an employee has the right to buy a specified number of a company’s share at a fixed price for a specified period of time.  The question does arise on how to reward employees so that they remain motivated for a long time. Stock option is the answer.

Stock options are authorised by a company’s board of directors and approved by its shareholders.  This employee reward is given by a certain percentage of the company’s shares outstanding.
Non monetary type of incentive:  Non cash reward programme works better than cash as it promotes improvement in team work, increasing customer satisfaction and motivation in workplace among other programmes.  Reward and recognition has a timing element. It is must to occur for staff appreciation. if High 
rewarding performance continues then reward & incentive can be one of the factor for it. Both reward & recognition programmes have their place in business. By rewarding performance business will have an edge in competitive market place. Non monetary incentive reward employee performance with opportunities other than related to monetary incentive. It includes flexible work hours, training opportunities and ability to work independently. Such programme motivates employee as there is learning of new skills and pursuing the advance opportunities

 

 

 rewards and incentives -hrhelpboard

The Various types of non monetary rewards & incentives:
 
Employee rewards have been divided into following categories.
Branch Level Reward: This includes Individual level Reward and on the spot rewards and given for rewarding work.
Regional level Reward:This includes rewards given to Best Teams at regional level.
Pan India level Reward: This includes Employee of the year reward, Invention of the year award, cost saving strategy of the year, most efficient operations award, employee engagement practice of the year.

 

 
reward -hrhelpboard 

“ON THE SPOT “Reward

 Types of  Rewards

Criterion

Level

Purpose

Approval Required

Timings of the Reward

Felicitation

 

Company  apparels

 

 

 

Going extra mile and performing work beyond own duty 

Branch  Level

To motivate and inspire the employee

Immediate Manager/HOD

Instantly

As and when required

 

 

Lunch with HOD / Senior Management Team

 

 

 

 

 

 

 

 

Any Innovative idea which has helped achieving the given task at hand

 

 

 

Branch Level

 

 

To recognise employee skills  held

 

 

 

Immediate Manager/HOD

Instantly

As and When required

Regional Level Rewards

“Team of the region “

reward policy of hrm -hrhelpboard


It includes “Employee of the year award “, “Invention of the year award”, “Cost saving strategy of the year Award ”, “Most efficient operations award ”,  “Employee engagement  practice award “Best safety practice award”.PAN India level rewards

Types of Reward

Criterion

Level

Purpose

Approval required

Timings of the Reward

Felicitation

 

Employee of the year award

Excellence in all spheres of the work done

PAN  India

Recognize commitment towards setting excellent benchmark by an individual

Senior Management

Annually

PAN India event

Invention of the year award

Excellent initiative to improve upon Process/ Practice

PAN India

To recognize the initiative that resulted in  improvement in process/ practice

Senior Management

Annually

PAN India event

 

Cost  Saving Strategy of the year Award

 

 

 

 

Cost reduction ,

Improvement in revenue generation

PAN India

To recognize the strategy that resulted in cost reduction

Senior  Management

Annually

PAN India Event

 

Most Efficient operations award

 

 

 

 

Strategy that resulted in tangible benefits to the company in terms of operational efficiency

PAN India

To recognize the strategy that resulted in Operations efficiency

Senior Management

Annually

PAN India Event

Employee Engagement practice of the year Award

Going out of ways to form inclusive work environment

PAN India

To recognize practice that has resulted in Improved productivity due to inclusive work environment

Senior Management

Annually

PAN  India Event

Process followed for Branch level Reward 

Reporting manager recognize the contribution of the employee

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Reporting Manager seeks HOD approval on the same

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Approval Received 

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Award Shared at an event organised at branch level also shared as and when required in case of LinkedIn recommendation

Process followed for Regional Reward

Reporting Manager Send Team nomination to HOD, (nomination to be sent in given timeline)

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HOD Consult with Regional HR committee, Regional committee takes telephonic round of interview, names of shortlisted candidates shared with Corporate HR for approval

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Nominations sent to Corporate HR for approval if approved 

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                          Rewarded in regional level event

 

 

 

 

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