REWARDS AND RECOGNITION

WHAT IS EMPLOYEE REWARD AND RECONGNITION?

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Recognition and Rewards are the two sides of the same coin. Recognition is an art by virtue of which you acknowledge the efforts of a person to do something exceptional beyond the call of his duty whereas Rewards are a satisfying return, can be in the form of monetary or non monetary gain, of a desired behavior or outcome. Its a proven fact that motivated employees are critical to a companys bottom line. By Recognizing our peoples dedication, commitment and results we boost their morale, increase productivity, enthusiasm and create powerful motivators. Rewards can help create the right employee team environment. An atmosphere that is encouraging and favorable to achieve the contributions and efforts an organization needs. Dont let your best peoples efforts go unrecognized or unrewarded.

Theoretical approaches
   

The ethical perspective The humanist and existential view The psychodynamics of work The behavioral approach

Four forms of recognition

 existential recognition,  recognition of work practices,  ecognition of dedication to work,  recognition of results .

Eight subcategories of employee recognition

       

formal recognition, informal recognition, public recognition, private recognition, monetary recognition, non-monetary recognition, individual recognition, collective recognition.

PURPOSE
y Employee motivation and retention tool .. y Recognize individuals and teams .. y Provide a continuum of opportunities to

acknowledge . y Foster an environment of shared success y Recognize that each individual can make a difference... y Showcase employees as role models . y Be a fair and flexible practice that is woven into the fabric of the organization culture ..

FRAMEWORK KPO
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For this first- identify the objectives of the incentives Understand the motivation levels of the employees ( Conduct a survey ). Make an announcement about the R&R program- Create hype around it Start with a monthly program and give updates on a weekly basis Use posters of experienced key employees- and show their career graph. Since there are multiple departments, once can create a reward program to conduct the "Best department award" too Create a mission statement for your reward/recognition system. Conduct a quick study of the current programs to find a) similar criteria, b) similar philosophy, and c) similar measurement criteria of "success. Create a committee of people in each department (I would recommend using the informal leaders) to complete the new guidelines.

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The most effective reward and recognition programs have five elements
y Achievable: Set achievable standards. If it can t be accomplished, it becomes a de-motivator. y Objective: Tell employees exactly what it takes to achieve a reward or recognition. y Sensible: Include rewards that are logical motivators. If you are in your busy season, don t award additional time off if your schedule can t tolerate it for another six months. y Timely: Waiting too long to deliver a reward or recognition will lessen the impact. y Useful: If possible, measure and reward something that helps to produce useful business results.

Eight quality criteria

Expedients to recognition
 Expedients to expressing employee recognition  The organizational environment  The work environment  The management environment

Obstacles to recognition
 Fear of losing control/authority.  Lack of time.  Ignorance of others and their work.  A desire to be fair.  Difficulty interacting with others.

How does recognition affect employees?

    

arrier of identity Self-esteem booster Source of meaning in work Increased motivation and satisfaction! Mental health

How does recognition affect the organization?

y Improved quality of work life y Employee motivation and retention y Employee motivation and retention y Learning

How does recognition affect customers?

y A positive image y Courteous service that reflects the organization's

philosophy!

NEGATIVE EFFECTS
 Jealousy and a sense of injustice  An atmosphere of competition  Loss of credibility

R & R KIT
y Sensitization tools y Implementation tools y Suggested recognition activities

Survey
 What your organization currently offers recognition for  What you want your organization to offer recognition for  Your organization's current recognition practices  The recognition practices you want your organization to adopt  Employee recognition and types of interaction  My perceptions of recognition  Obstacles to employee recognition  General comments

Reward Employees (Without Spending dime/Informal Rewards)

y Praise or thank you , either y y y y

privately or publicly. Writing a short note or thank you card or email. Acknowledgement at staff meetings or other appropriate functions. A Certificate and/or letter of appreciation Developmental opportunities (e.g. given priority to attend higher level meetings, attendance at external conferences). Selected to represent area at a meeting or attend as an observer

y Providing small appreciation

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rewards (e.g. movie tickets, area sponsored luncheons, vouchers, plaques). Setting up a notice board to display thank you memos, photos, progress towards goals, etc. Implementation of a staff idea or proposal. Arranging a personalized gift to celebrate a milestone or service anniversary. Providing flexible working arrangements ( where appropriate ) .

Reward Employees (Without Spending dime/Informal Rewards)

y Provision of more autonomy in their y y y y y y y

job. Additional responsibilities in a job or role. Opportunities for the staff member to provide comment on specific issues, policies etc. Providing greater access to information and Increased opportunities for input and advice. Mentoring and work shadowing opportunities. Invitation to co-ordinate and chair meeting. Provide increased flexibility in working arrangements e.g. working from home

y Opportunities to take on additional

responsibilities that are more personally rewarding. y An opportunity to be involved in a major presentation. y Provide special project/assignment work.

Key Metrics of Reward & Recognition

y Percentage of Respondents Who Apply Theoretical Model to Rewards and y y y y y y y y y y y y y

Recognition Programs Frequency of Reward Type Ranking of Reward Effectiveness Eligibility Criteria for Rewards Dollar Range of Awards Salary Connection Award Budget as portion of Department Budget Award Budget as portion of Organizational Budget Functional Involvement Authorization Level Method of Award Nomination and Distribution Frequency of Awards Forum for Awards Distribution Employee's Satisfaction Level with Rewards and Recognition Programs

Key Findings of Reward & Recognition

y Organizations most frequently use gift certificates, awards and items to reward y y y y

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employees; however, respondents report that cash is the most effective motivational means of recognition. While achievement in performance is the most frequent criterion to determine award eligibility, respondents also emphasize criteria based on desired behaviors. Employees most often comment that rewards and recognition programs should be consistently and fairly created and applied. Awarding shares to the employees on the basis of tenure or employee stock option programs which gives employee the right to buy a specified number of a company shares at a fixed price for a specified period of time Profit-sharing refers to the strategy of creating a pool of money to be disbursed to employees by taking a stated percentage of a company's profits. The amount given to an employee is usually equal to a percentage of the employee's salary and is disbursed after a business closes its books for the year. The benefits can be provided either in actual cash or via contributions to employees . A benefit for a company offering this type of reward is that it can keep fixed costs low. Performance Bonus for individual or team on basis of their performance Group based reward systems are based on a measurement of team performance , with individual rewards received on the basis of this performance While these systems encourage individual efforts toward common business goals, they also tend to reward underperforming employees along with average and above-average employees. A reward program which recognizes individual achievements in addition to team performance can provide extra incentive for employees.

Thank you