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.
Senior Management |
Managers |
Employees |
|
|
|
Sample Policy For Reward and Recognition at Workplace
A quick Guide ,Templates for Example
Index
- Aim
- Purpose
- Scope
- Definitions
- Component of reward structure
- Steps for development of effective reward structure
- Why reward employees
- Parameters for reward programme
- Most important steps for reward and recognition
- Key responsibilities
- Reward and incentive
- Nominations
- Selection
- Effectiveness of policy
- Review of policy.
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:
The following type of performance can be rewarded:
Why reward Employees?
Parameters for reward programmed:
Most important steps for reward and recognition:
Key Responsibilities
Employees |
To exhibit the values of the organization in their day to day work. Meetings targets assigned to them. |
Managers
|
Proper and fair treatment for all team members. Efficiently recognizing team and individual employee efforts. Monitoring employees performance |
HR Department
|
To ensure the policy is followed in a fair and equitable manner Monitoring of effectiveness and cost of the policy Communication of policy Coordination for nominees assessment Supporting values and embedding them in everyday’s life.
|
Senior Management |
Effective implementation of policy |
Rewards and incentives:
What does incentive mean?
Types of Incentive:
Formal and Informal rewards
Types of Monetary incentive/Reward |
The Process to be followed |
Parameter basis which reward is given |
Approval |
No. of rewards |
Merit Pay |
It depends upon the job assigned. Higher the performances better the reward. |
Rewarding performance of an employee
|
HOD, Director, Finance, and HR. |
5 |
Profit sharing Plan |
Company offer share in the profits to the employee as a common incentive for giving motivation in the workplace. |
High level of extraordinary work is rewarded.
|
HOD, Director, Finance, and HR.
|
2 |
Pay and allowance |
Pay hike and allowance are linked with the performance of the employee. |
Extraordinary efforts put in by an employee in a given task. |
HOD, Director, Finance, and HR. |
Depends on the individual to individual
|
Commission |
The Commission is offered to employees generally working under the sales dept. More order means more commission. |
The Individual with special skills is recognized and rewarded.
|
HOD, Director, finance, and HR.
|
Top 5 performers in the sales department
|
Stock option |
Many companies that offer a share in management or participation in management along with the share in profit as an incentive to get efficient working from the employees. |
Exhibition of leadership skill is another way to reward employees. Leadership skills used in getting the complex job done demands reward.
|
Management decision in consultation with Director finance and HR.
|
Depends on the company to company setup. However, the number cannot exceed 10% of total employee strength
|
Bonus |
When an employee reaches the target or exceed the target then they are paid the extra amount, this extra amount is known as the bonus. |
Extraordinary efforts put in by an employee in a given task.
|
Management discretion
|
Depends upon the employee strength
|
Suggestion Plan |
This is another type of incentive in which an employee is rewarded if any suggestion given by employee gives gains to an organization.
|
One time outstanding idea which helped the company as a whole.
|
Director, HOD, HR.
|
1 |
Extra benefits like medical facility, free education, housing facility. |
These are related to the performance of an employee
|
The Employee has done a job well despite being complex; such employees are appreciated and awarded. |
Director, HOD, Finance, and HR. |
5 |
Informal Rewards:
Type of reward |
Process |
Approval |
No of rewards |
Parameter is chosen |
Personal or Verbal thank you |
The immediate manager say a thank you or send a thank you card |
No Approval
|
No Limit but should be done only for extraordinary work. |
Work was done above normal duty
|
An email or personal note to an individual |
Sends an email appreciating employee work with a cc to the whole team |
No approval
|
Same as above
|
The Outstanding effort which benefited department as a whole |
Sharing achievement in team meetings |
Achievement shared in Team meeting generally shared by the department head. |
No approval
|
Same as above
|
Higher quality work consistently
|
A day off for a job well done |
Extraordinary work done by the employee, a day off given to the employee |
HOD approval
|
Same as above
|
Any extraordinary work is done which has increased the image of the department |
Flexible work schedule |
Flexible work timings are given to the employee for a period of one month. |
HOD approval |
Same as above
|
Exceptional contribution in getting the work done |
Formal Recognition:
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:
Selection Criteria:
The Effectiveness of policy:
Review of the policy:
Sample Policy - II
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”.
|
|
- 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
|
Principle: Basic principle followed for reward and recognition policy is mentioned below:
|
Eligibility for Reward and Recognition Following criteria must be fulfilled before an employee become eligible for reward and recognition
|
|
Qualifying outcome for reward and recognition
|
|
|
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.
|
|
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
|
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.
|
Types of Reward |
Criterion |
Level |
Purpose |
Approval Required |
Timings of the Reward |
Felicitation |
Certificate of Recognition |
Any work done by the employee exception ally well |
Branch Level |
To recognize individual efforts for doing work extra ordinarily |
Immediate Manager HOD |
As and when required quarterly basis |
Event organized at branch level |
Linked in Recommend action |
Individual possessing the highest talent with extruding any skills |
Branch Level |
To recognize individual efforts for doing work extra ordinarily |
Immediate Manager HOD |
As and When Required |
Linked in Recommendation as and when required |
“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 “
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 |
Reporting Manager seeks HOD approval on the same |
Approval Received |
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) |
HOD Consult with Regional HR committee, Regional committee takes telephonic round of interview, names of shortlisted candidates shared with Corporate HR for approval |
Nominations sent to Corporate HR for approval if approved |
Rewarded in regional level event |