Goals of a Reward/Recognition Program 1. To advance the goals, values and mission of the organization (employer benefit); 2.

To recognize and reward employees for their performance, behaviour, outcomes (employee benefit Benefits: More productive employees; More satisfied employees; More loyal employees

Motivation It is a persons need or desire that causes them to act. EXTRINSIC MOTIVATION - comes from outside the person INTRINSIC MOTIVATION - comes from within the person and is based on an employee's personal needs and expectations

Motivation can be given as Achievement Affiliation Power and Control

Recognition is Acknowledgement of some achievement Predetermined or unplanned

It promotes the behavior that should repeated Individual or teams

Benefits of a well designed recognition Reinforces the strategies/goals of the organization Promotes repeatable behaviors Improves morale Can promote teaming, communities, etc. Can be positioned as a part of a total compensation package

Types of recognition Organization wide programs Anniversaries Suggestion programs Top achievers Management discretion/ nominated Employee of Month Best when at discretion of manager Peer to peer Usually many restrictions

Recognition should be, (key features) Targeted Support strategies and goals Specific behaviors Clearly communicated Timely Public Appropriate Last decision to make when designing a reward process Review all other forms of recognition within organization Determine least method for most gain Cash or Non-monetary?

Framing of recognition Who Individuals Teams Various organizational subsets When Daily, monthly, quarterly, annually As behavior occurs

Specific events How Always Public

Pitfalls Rewarding wrong behavior Too little Too late Too much Out of sync with other reward structures

Elements of recognition Praise Thank you Opportunity respect

People will forget what you said People will forget what you did But People will never forget How you made them feel

Rewards and recognition helps in:

 Employee satisfaction: influencing retention and motivation  Performance Management: creating a workplace environment that provides positive reinforcement of behaviors necessary to achieve results and business goals.

Recognition = reinforcing behavior Reward = rewarding results This can be formal (as a part of a predetermined process) or informal (spontaneous).

What are the success criteria of reward systems? As part of Employee Satisfaction, here are criteria for successful reward systems: 1.match the reward to the person 2.match the reward to the achievement 3.be timely and specific

As Performance Management, here are some suggested criteria for successful reward systems: Reward systems need to have a positive impact on behavior 1. Contingent on achieving desired performance levels rather than on merely doing certain tasks 2. Meaningful and valuable to the individual 3. Based on objective and attainable goals 4. Open to all, and not based on a competitive struggle within the workplace (everyone can win) 5. Balanced between conditions in the workplace (extrinsic) and fulfilment of individual needs and wants (intrinsic)

Reward systems need to focus efforts on serving the customer (internal or external) Reward systems need to enhance collaboration within the workplace

A popular slogan for managing and evaluating success criteria is SMART Specific, Meaningful, Achievable, Reliable, Timely.

What type of reward is most effective? One study suggests that informal rewards are the most effective. Further, these motivating techniques were ranked as the top five: 1. The manager personally congratulates employees who do a good job 2. The manager writes personal notes about good performance 3. The organization uses performance as the basis for promotion 4. The manager publicly recognizes employees for good performance 5. The manager holds morale-building meetings to celebrate successes

Tactics for implementing an Informal reward system include Linking to organizational goals Defining parameters and mechanics Obtain commitment and support Monitor effectiveness, and change when the rewards are no longer special Link to formal rewards programs

Reward systems are not exclusively the realm of managers Systems can include structures that allow for peers to recognize each other. For many people, peer recognition is more important than recognition by managers or customers.

Basics for Effective Rewards and Recognition Use the persons name Strive to be timely The compliment is the only topic discussed Make it specific so the person knows why they are getting the recognition Describe how what they did helps the organization; how it will be used Follow-up a verbal compliment with a note Make it public if appropriate, especially if the performer could serve as a resource to others

Elements of Total Rewards There are five elements of total rewards, each of which includes programs, practices, elements and dimensions that collectively define an organization's strategy to attract, motivate and retain employees. These elements are:  Compensations  Benefits  Work life performance  Recognition and development  Career Opportunity Compensation: Compensation Pay provided by an employer to an employee for services rendered (i.e., time, effort and skill).Compensation comprises four core elements: Fixed pay Variable pay Short-term incentive pay Long-term incentive pay. Benefits: Benefits Programs an employer uses to supplement the cash compensation that employees receive. These programs are designed to protect the employee and his or her family from financial risks Social &group Insurance Pay for Time Not Worked Work-Life: Work-Life A specific set of organizational practices, policies, programs, plus a philosophy, which actively supports efforts to help employees achieve success at both work and home. There are seven major categories of organizational support for work-life effectiveness in the workplace. Performance and Recognition: Performance involves the alignment of organizational, team and individual effort toward the achievement of business goals and organizational success. Acknowledges or gives special attention to employee actions, efforts, behavior or performance. Development and Career Opportunities : Development A set of learning experiences designedto enhance employees' applied skills and competencies;development engages employees to perform better and leaders toadvance their organizations' people strategies.

Basic Categories of reward No compensation award: Those beneficial factors related to the work situation and well-being of each employee. Two Basic Categories of Rewards 1. Compensation rewards: Those given in return for acceptable performance or effort. They can include nonfinancial compensation. 2. Financial Compensation: Straight Salary is simple to administer Planned earnings are easy to project. Salaries can provide control over sales peoples activities, and reassignments are less of a problem. Salaries are useful when substantial development work is required. Disadvantages: Salaries offer little incentive for better performance. Salary compression could cause perceptions of inequity among experiences salespeople. Salaries represent fixed overhead. 3. Nonfinancial Compensation Opportunity for Promotion: The ability to move up in an organization along one or more career paths Sense of Accomplishment: The internal sense of satisfaction from successful performance Sales managers should facilitate sales peoples ability to feel this a sense of accomplishment 4. Nonfinancial Compensation Opportunity for Personal Growth: Access to programs that allow for personal development (e.g., tuition reimbursement, leadership development

seminars)Recognition: The informal or formal acknowledgement of a desired accomplishment Job Security: A sense of being a desired employee that comes from consistent exceptional performance

Monetary/Non Monetary awards Following are some of the monetary/non monetary awards

Rewards and Recognition: Examples from the field

LARSON AND TURBO is giving awards to employees who have performed well, in terms of money, mementos, certificates stating best employee. Some cases employees get promoted. Quarterly review is done by Project Manager and employees get salary increment and promotion if the performance is good. On the basis of evaluation reports of the employee HRD department of Larson and Turbo they plan special skill development training for employees.

Welfare facilities:

Company is providing various working facilities like medical insurances, group life insurance/ education assistance to children social membership, club membership. Canteen facilities are at very low cost. They have welfare activity group which is always in process of rebuilding and improving facilities for employee. Career development facilities: Employees who are willing to study further, Larson and Turbo is providing monitory assistance to employees and they make bonds, employees get salary during their education period. Some Employees at executive level get education expense also. Some of the recognition categories are given to employees:  Thank you slips  Pat on back  Appreciation letters  Simply the Best - Team Award  Holiday Plan

Reliance's appraisal and reward system is aimed at increasing employee involvement in the goals and objectives of the organization, and encouraging individuals to go beyond their scope of work, undertake voluntary projects that enable them to learn, and contribute innovative ideas in meeting the targets of the company. Reliance places great emphasis on soft, conceptual and cross-functional skills, especially at managerial levels. Employee commitment to areas like Human Resource Development, Industrial Relations, Health, Safety and Environment, and Quality and Documentation is given high importance.