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. For more information visit https://www.hrhelpboard.com/hr-policies/reward-and-recognition-policy.htm

1. Reward and Recognition policy

2. Index
• Aim of the Policy
• Why we need reward and recognition policy?
• Who all it includes?
• How to create an effective reward programme?
• Why to reward employees?
• How to reward employees?
• Types of incentive
• Nomination and selection

3. Aim of the Policy
• The major aim of reward and recognition policy is to attract and retain
the best talent
• To retain talent, it becomes important to recognize the efforts put in by
the employee in terms of performance, attitude, and achievements
• To build up an organizational culture where good work done by
employees is valued
• Tremendous efforts are recognized.

4. Why we need reward & recognition policy?
• To have a systematic approach towards the appreciation of rewards, there
is a need for reward and recognition policy.
• In attracting and retaining talent within the organization
• Acts as a morale booster
• Promotes 3 P's i.e. Productivity, Positivity, and Promotion
• Builds up motivation in the workplace

5. Who all it includes?
Employees
all regular
It includes

6. How to create an effective reward system?
Evaluate
the
program
me
Target
the
audience
Choose
the
Target
Know
your
budget
Determin
ing the
criterion
Commun
icate
Choose
the type
of award

7. Why to reward employees?
Increase in
productivity
Boost employee
morale
Greater employee
satisfaction
Better retention Reduce stress
Reduces
wastage
More engaged
employees
Higher Loyalty Better Teamwork
Lesser
absenteeism

8. How to reward employees?
• Monetary incentives
• Non Monetary Incentives

9. Monetary Incentive
Merit Pay
Profit
sharing plan
Pay and
allowance
Commission
Stock option
Bonus
Suggestion Plan
Perks
Fringe
Benefits

10. Non monetary Incentives
Formal
Rewards
Career
advancement
diamond star
Employees
participation
Year of service
award
job enrichment
Celebration
chart
Formal letter
of appreciation

11. Some more non monetary Incentives
Team Trophy Lunch with CEO
Framed letter of
appreciation
Team Jersey
Dedicated corner
in company's
newsletter
Team Training
Peer to peer
recognition

12. Nomination Process
Immediate
Manager
• Discuss with HOD that they wish to nominate employee/team
for a reward
HOD
• Discuss with immediate manager, make recommendation for the employee
• If valid make recommendation for the employee and gives approval, if not valid
discuss rationale with manager.
• If valid process to HR.
HR
• Review nomination. If valid, process request including setting
the monetary amount. If not valid notifies immediate manager
of non inclusion with rationale

13. Continue.......
Immediate
Manager
• Discuss with HOD that they wish to nominate employee/team
for a reward
HOD
• Discuss with immediate manager, make recommendation for the employee
• If valid make recommendation for the employee and gives approval, if not valid
discuss rationale with manager.
• If valid process to HR.
HR
• Review nomination. If valid, process request including setting the
monetary amount. If not valid notifies immediate manager of non
inclusion with rationale

14. Selection
• 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.