Professional Documents
Culture Documents
Acknowledgements
We are thankful to all participant companies for giving us an
opportunity to study their Rewards & Recognition practices. We are
also grateful to these organisations for sharing with us the knowledge
and wisdom that they have developed with rigorous efforts over
many years.
We are also grateful for the assistance of the following individuals in
producing this report:
Authors:
Aniruddha Limaye
Ralsi Sharma
Reviewers:
Prasenjit Bhattacharya
Preeti Malhotra
Divya Martyn
Project managed by
Ralsi Sharma
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Executive Summary
Workforce today is more articulate about their needs. Employees
desire the best of everything competitive salaries, comfortable &
aspirational lifestyles, job security, career enhancement options,
work-life balance, and so on. Competition for talent is ever
increasing and organisations need to have well-defined
philosophies and strategies to help them develop innovative ways
of tapping intrinsic motivation of employees by engaging their
hearts and minds. While many organisations are struggling to
make sufficient progress in this direction, there are organisations
that have institutionalized robust practices and effective processes
in different people practice areas that go a long way in positively
impacting employee perception. Indias Best Companies for
Rewards and Recognition was conceptualised to recognize
companies who are leading the way in the area of Rewards and
Recognition for us learn from.
This white paper aims at sharing our understanding of effective
and innovative rewards & recognition practices.
Methodology of the Study:
While employee responses to the entire Trust Index Employee
Survey was used as a qualifier, the employee responses to eight
statements related to rewards and recognition in the TI Survey
were the key factor in determining the winners of the study.
Standard deviation in employee responses to these statements
was used to gauge the consistency and universality of the
employee experience. Since practices drive employee perception,
rigorous evaluation of Rewards and Recognition practices in the
participating organisations was also carried out to make the
evaluation comprehensive. Employee perception (captured
through TI Survey Scores) carried 2/3rd weight and assessment
of practices in the area of R&R carried 1/3rd weight in determining
the winners.
Major findings and key insights:
1. Effective rewards and recognition practices need to reflect a
companys culture (basic values & beliefs) and integrate well
with the nature of its business, strategy and goals.
2. Absence of fairness significantly hurts employee perception
and efficacy of R&R practices. Absence of fairness is evident
by factors like
a. Insufficient external parity,
b. Inadequate internal equity
c. Lack of impartiality in assessment,
d. Lack of clarity of desired actions & results which will be
rewarded, and
e. Inadequate transparency on how and why some employees
get rewarded.
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Contents
1. Introduction to the Study
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8. Key learning
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1. HIRING
Focus is on hiring for potential and character of the person, rather than primarily on skill set. New employees
are welcomed and assimilated into the team with orientation programs, personal sponsorships, and the like.
2. INSPIRING
Employees learn and understand how their job has meaning for the organization and for society, beyond
earning a salary and making a profit for the business.
3. SPEAKING
Management goes to great lengths to be open and transparent, offering access to information across the
board, enabling and encouraging employees to contribute beyond the scope of a narrowly defined job.
4. LISTENING
Special open systems for incorporating peoples ideas, for including people in decision-making, and enabling
them to air their concerns and grievances.
5. THANKING
Recognizes and rewards good work and extra levels of effort; strives to create a climate of approval and
reinforcement.
6. DEVELOPING
Focus is on nurturing individuals gifts to foster personal growth and development as well as offering jobspecific training.
7. CARING
A multiplicity of systems and programs are put in place for creating a caring environment for the individual and
his/her family.
8. CELEBRATING
Celebrations of both personal milestones and company successes are built into the way people work
together.
9. SHARING
Employees share in the fruits of their labour in a variety of ways; rewards are equitable and egalitarian in
nature.
Great Place to Work Institute has also found that all people
practices and programmes in great workplaces have most of the
following characteristics, which make them effective and positively
perceived universally by employees.
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Intel:
Employee Bonus program (EB) is a variable-pay program for all non-commissioned, regular Intel employees worldwide.
The Employee Bonus (EB) plan is designed to align the business groups at Intel around the Corporate Strategic Objectives.
It is paid out annually and is calculated based on three equally weighted components: Absolute financial performance,
relative financial performance, operational performance.
The components of the EB calculation enable an employee to create a line of sight between his contributions and company
profitability. The target amount increases at higher grade levels thereby placing more pay at risk for employees who more
directly influence the achievement of financial and business goals.
The following band-wise break-up at Music Broadcast shows how the ratio of individual and organisation performance varies with
bands, keeping in mind the line of sight of business goals:
Bands
Organization Achivement
Individual Achivement
B1
50%
50%
B2
25%
75%
B3
0%
100%
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Idea generation
Creative processes
Innovative thought
Mastering Technology
An organisation needs to clearly identify the culture that is required
in the organisation for its business to succeed and see how their
rewards and recognition practices would promote the same.
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A strategy is only as good as its execution. One can have the very
best strategy, but if not executed well it will be ineffective. Ineffective
implementation will not only lead to wastage of money and efforts
but is also capable of having negative impact. To implement a
total rewards plan, a broad range of aspects need to be
considered. It includes understanding objectives, defining metrics,
designing the plan to measure and track achievements against
the defined goals and metrics and deciding on the types of
rewards.
Intel:
TRUE BLUE Partner Award for Being a solid partner
to the business.
360 Degree Award is something given out to
individuals for effective stakeholder management.
Rolling Bat/Rotating Flag to commend employees
who have added value to the business and this bat/
flag is rotated on a quarterly basis.
The Technology Submission Award Program is
designed to help fuel ICAPs Technology Licensing
Groups (TLG) licensing business by encouraging
blue badge employees to submit proposals for
suitable licensable technologies.
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The best part of recognitions on joining anniversary celebration at TPG Software is that every gift is personalized to suit
the needs of the anniversary girl/boy which Team HR arrives at by informally studying the lifestyle and interests of every
BrickRedian to procure the gift accordingly. This brings immediate smile on the face of the employee being awarded
with high level of excitement shared by the family members when they get to know about the award.
Moreover, the Steering Committee (senior leadership team) while choosing and nominating people for awards,
deliberates on the following factors: a. Match the reward to achievements b. Match the reward to the person c.
Measures of achievements in the light of award
TPG Software also provides its employees flexibility to choose their compensation structure and increment cycle.
6.2.2 Recognition as the way of life: creating a chance for all to be recognized
Organisations now understand the power of recognition and
appreciation. They understand that it requires a lot of effort on the
part of employees to continuously contribute towards
organizations success. It is the recognition or words of praise that
give an employee the push to go on. Gone are the days when
recognition had a top down approach. Organisations now are
creating platforms for all to recognize each other, which includes
peer to peer and junior to senior recognition. Organizations employ
multiple broad-based recognition programs to encourage
achievement and to sustain a culture of customer focus and high
employee involvement.
4. T20 Dwitiya
5. Mission Thailand
6. SIP 7500 to Thailand
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program was started, and thus, it may not add the expected
value.
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Criteria
Incentives
Advantages
Disadvantages
Individual
Performance
Group
Performance
Organisation
Performance
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The goal behind this is to create a payment that reflects the same
value to the employee given cost of living and average salary in
that country.
Organisations have institutionalized a variety of programs that
recognize/reward for a variety of reasons to ensure overall and
sustainable development of the organisation. The following are
some of the ways to promote behaviours that matter:
Link incentives to sales and service performance metrics to
preserve high-quality customer relationships
Patents to revenue from patented products to ensure meaningful
research & development
Link compensation with team performance to drive collaborative
behaviour
Team performance and team excellence are essential for
organizations to grow and prosper. To promote the same, linking
it with merit pay becomes essential. Teams start out with merit pay
criteria that are based 80 percent on individual factors and 20
percent on team performance factors. As a team matures and
peer support and approval acquire importance, it may move this
allocation to a 50-50 allocation, which ensures that merit pay
distributions hinge equally on team and individual performance.
Merit pay is zero-based, meaning that the allocation of merit pay
in one period is not predicated on previous allocations. Placing
merit pay on team activities helps ensure project teams, process
teams and task forces work toward common goals. Linking
compensation to teamwork and sharing establishes the proper
incentive structure to drive across the territory improvement.
All the standards and instructions for their rewards program are
lucidly documented with clearly defined objectives and
evaluation parameters and published through intranet,
dashboard newsletters, etc.
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Often when we, from Great Place to Work Institute, share robust
and effective practices from great workplaces, some members of
the audience tell us that their organizations also have the same
kind of practices. Their question is: Why dont our employees
(and consequently, Great Place to Work Institute), rate our
organization as a best workplace? We address this question
there, and it is important that we address it here as well.
First of all, the similarities are deceptive because they are similar at
a superficial level. The differences come in when we examine the
details of what they do. The differences dont end there. They
become more manifest as we examine why they do what they do,
and how they do it. The great workplaces dont implement these
practices in a transactional manner. They are not copying
someone else because the idea seems appealing. They design
what suits their purpose and circumstances. The entire
organization, beginning with the top leaders, share a deep
conviction based on their values and beliefs that this is the right
thing to do. This ideological or philosophical underpinning provides
them impetus to implement their people practices in a heartfelt
manner and over an extended period of time, seeking feedback
and trying to improve the practices and the impact of what they
do. This conviction also imbues what and how they do it.
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Companies
Featured in this report
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Industry: Media
Business Description: Radio Broadcasting
India HQ: Mumbai
Founded in India (Year): 1999
Ownership: Privately Held
Employee Strength: 334
Industry: Telecommunication
Business Description: wireless devices and services
India HQ: Mumbai
Founded in India (Year): 1985
Ownership: Publicly Held
Employee Strength: 1683