The purpose of having a reward and recognition program as part of the organizational change management plan for large-scale change initiatives is to incentivize and acknowledge the behaviors, attitudes, and accomplishments that contribute to the success of the change effort. By providing tangible rewards and public recognition, employees are motivated to adopt new behaviors, embrace new processes, and sustain the changes over time. This can lead to increased employee engagement, improved morale, and higher levels of commitment to the organization's goals. Furthermore, a well-designed reward and recognition program can create a sense of community among employees, reinforcing a culture of collaboration and teamwork that can support ongoing change efforts. Overall, a reward and recognition program is an effective tool for reinforcing desired behaviors and encouraging a positive attitude towards organizational change, ultimately increasing the chances of achieving successful outcomes.

1. 2021
Presented By: George B. Lampere, Ph.D.
Use of Rewards and
Recognition in
Organizational Change
Management

2. 1
Understanding Rewards and Recognition
Link with culture &
engagement
Drives high
performance
It's need in the 21st
century
Defining R & R

3. 2
Tangible and intangible incentives, recognition and
appreciation
Should be grained into culture
Recognizes performance and drives discretionary
effort
Defining
Rewards &
Recognition
through
different lenses

4. 3
The world of work is changing.. R & R key to engage employees in 21st century
To cope with talent demand & supply gap, companies will reinvent strategy & focus more on 'employees'
People Strategy
& Planning
Simplicity –
in Complexity
Agility &
Innovation
The Demanding
Consumer
Automation
Analytics
Access
Diversity &
Inclusion
Individuali-
zation & Entre-
preneurship
Purpose &
Well Being
New Demo-
graphic Mix
Skill
Imbalances
Geo-Eco-
Political
Dispersion
Shifts in
technology &
digital
productivity
Shifts in
ways of
generating
business
value
Shifts in
resource
distribution
Shifts in
workforce
values &
culture
Twelve forces changing work... ... Why do we need R & R
1
2
3
4
5
6
7
Drive employee engagement
Motivate employees
Improve organizational culture
Engage leadership and workforce
Promote talent & high performance that will impact
business
An important business strategy to make an emotional
appeal
Brings employee closer to the objectives of the
organization

5. 4
Effective R & R practices drive business performance through higher
employee engagement
5 150
10
0 15
Profit growth 4%
Revenue growth 2%
Total assets 10%
Gross profit 19%
Earnings, EBIT 10%
Operating margins 4%
EPS 147%
Research shows that companies with
highly engaged work forces
outperform financially
Outperformance rates by companies with
high engagement vs. low engagement
More engaged teams
deliver better results
Productivity
Profitability
Customer
Ratings
Outperformance rates by
teams with top-quartile engagement vs.
bottom-quartile engagement scores
+21%
+22%
+10%
Companies with highly engaged
staff enjoy "best employer" status
Employee responses
85
75
67
44
0
20
40
60
80
100
(%)
Other organizations
Best in Class
Our reputation
as an employer
helps us attract
the best
employees
I would not
hesitate to
recommend this
organization to
a friend seeking
employment

6. 5
Good relationships with superiors
Appreciation for work (Rewards and
Recognition)
Good relationships with colleagues
Research finds
cultural
elements highly
important to
employees
worldwide
Note: Respondents could choose from 26 job elements; this list includes only the top ten
Source: 2014-2015 Google Creating People Advantage Survey

7. 6
Cultural elements of
R & R that drive
growth in an
organization
1
2
3
Promote desired behavior: Helps organizations instill and
promote it's 'value behaviors' that make people more
committed to their responsibilities
4
Performance and talent management; Retention:
Rewards people as per their performance and gives public
recognition that adds to the complete package
5
People Strategy: It is an important business strategy to make
an emotional appeal to build high performance
Purpose and engagement: fosters a sense of pride in
achieving goals & serves as a catalyst to increase employee
engagement
Organization mission, vision, goals: motivates employees
and brings closer to the objectives of the organization

8. 7
Rewards are a key lever to implement strategy and connect
employees with the larger goals
Motivation Reflection
Orientation
Reward systems convey and
reinforce strategic goals
Motivate and recognize
effort
Facilitate progress tracking
and support feedback

9. 8
R & R is key to people strategy in driving engagement and affiliation
R & R programs are
designed to achieve the
'Organization Purpose'.
It strategically connects
people with the desired
behaviors and motivates
their performance
towards certain goals
which meets the set
targets
Attract &
Recruit
Review &
assess
Develop &
Promote
People Strategy
& Planning
Context, strategy,
capabilities
Purpose
Employee
Lifecycle
Engage &
Affiliate
Including EVP, Total
Rewards, onboarding
& goal setting etc.
Connect employees with the
identified 'Purpose' / 'Goals'
Including High-Perf.
Culture, employee
Dev't, etc.
Through various
Rewards &
Recognition programs
Performance
assessment

10. 9
R & R
application
through various
dimensions
Financial incentives Peer to peer & manager
to associate recognition
Celebrate desired
behaviors
Mementos
Team rewards Reward medium term
indicators

11. 10
1
Principles guiding our view on the implementation
of R & R
Rewards and
recognition is a part
of the 'total offer'
that corresponds
with the 'Employer
Value Proposition'
Rewards and Recognition practices should be well integrated into the company culture
R & R dimensions should be designed to foster maximum motivation
Simplicity and transparency of rewards is critical
Incentives help change the context in order to shape the desired behaviors
Financial rewards are important, but just one piece of the overall reward system
Recognition is valuable from all levels: peers, leaders, sr. executives
2
3
4
5
7
9
8
6
R & R is very close to building an emotional connect with the employees which can be a big driver for the
overall growth
It shapes the culture and behavior in an organization
The R & R strategy should be a combination of top down and bottom up participant view

12. 11
Companies innovating
in the ways they
approach R & R

13. 12
Six themes emerge from R & R best practices
Case examples
Honor right people
Transparent talent
systems
Engage leadership &
workforce
Drive performance &
impact
Build a culture of
recognition
Measure results and
adapt to them
• Identify and encourage desired behaviors that lead to strategic objectives
• Recognize both hard/soft skills and individual/team achievements
• Involve people managers and employees in program design
• Ensure active participation by employees at all levels
• Have heart-felt support from CEO and senior leaders
• Tailor rewards to what matters for each employee segment
• Align resources and incentive to reward high performers, critical employee
and competence in critical skills
• Reward employees in appropriate, meaningful and memorable ways
• Build programs to complement and reinforce existing performance
management systems
• Communicate criteria publicly and transparently
• Develop capabilities to enable recognition culture via training/development
• Utilize 360º recognition from managers, peers, and customers
• Recognize winners through timely and highly visible celebrations
• Create a culture of informal recognition to reinforce desired behaviors
• Measure programs for effectiveness based on specifics KPIs
• Flex programs in response to data and employee feedback
Best Practices
Themes

14. 13
Cisco designed their program to recognize and reward employees for
their contributions and achievements, both individually and as part of
teams, and to encourage them to take ownership of their work and
drive performance.
• Improve employee
engagement, motivation,
retention, and business
results
• Reinforce company values
• Comprehensive rewards and
recognition program
• Elements include peer
recognition, spot awards,
long-term incentives
• Connected Recognition
platform for recognition and
rewards
• Long-term incentive plan with
equity-based rewards
• Increased employee
engagement, motivation, and
retention
• Improved business results:
productivity, customer
satisfaction, revenue growth
• Reinforced company values
Objective Approach Impact

15. 14
Microsoft developed their Recognition and Reward program to
improve employee engagement, productivity, and satisfaction,
encourage innovation and collaboration, and increase retention and
attraction of new talent.
• Improve employee
engagement, productivity, and
satisfaction
• Encourage innovation and
collaboration
• Increase retention and attract
new talent
• Comprehensive rewards and
recognition program
• Elements include peer
recognition, manager recognition,
spot awards, and long-term
incentives
• Company-wide recognition events,
such as "Founder's Awards" and
"Hackathons"
• "Manager Excellence" program to
train managers on recognition
best practices
• Improved employee
engagement, productivity, and
satisfaction
• Increased retention and
attraction of new talent
• Higher levels of innovation and
collaboration
• Improved business
performance and financial
results
Objective Approach Impact

16. 15
Google's multi-program 360◦ recognition portfolio drives unique employee –
centric culture
• Reinforce culture
through enterprise-wide
programs
• Encourage recognition
through top-down and
bottom-up programs
• Retain critical employees
via specialized
recognition
• Google's multi-program 360◦ recognition
portfolio includes a variety of recognition
programs designed to meet the needs and
preferences of all employees.
• These programs range from peer-to-peer
recognition to manager-led programs and
include rewards such as cash bonuses, stock
options, and more.
• The programs are designed to be inclusive,
transparent, and accessible to all employees.
• The recognition programs have
helped to create a strong sense of
community and camaraderie among
employees.
• The programs have also helped to
increase employee engagement and
retention, as employees feel valued
and appreciated for their
contributions.
• The programs have been shown to
positively impact employee
productivity and overall job
satisfaction.
Objective Approach Impact

17. 16
Designing an R & R program

18. 17
Design a reward
program:
Goals + Feedback
Strategy Participant view
• Derive task specific goals
from strategy
• Translate goals into
measurable metrics
• Decide on reward type
• Integrate rewards into
Performance assessment
• Assess participants views on
goals
• Scrutinize behavioral
reactions to performance
metrics
• Understand feedback and
learning processes

19. 18
How to design an R & R program
Launch
reward system
Design
reward system
Review status quo
and set target
Change Journey
3
2
1
Implications on Organization

20. 19
Review status quo
and set target
Design
reward system
Launch
reward system
Assess status-quo
• Map current reward system
• Align on issues
• Conduct cost-benefit analysis
Understand participant group
• Perception of current rewards and
performance assessment
• Preferences, personal goals, and subjective
peer groups
• Goal-setting and motivation
Derive strategic target profile
• Align on strategy/challenges
• Identify task-specific goals
• Derive desired behaviors
Benchmark rewards with competitors' offer
Translate goals into metrics
• Derive metrics to measure behavior and goal
attainment
• Model opportunistic behavior, side effects,
and blind spots
Decide on reward type based on
• group preferences
• firm requirements
• legal and accounting setup
Define payout function
• Analyze cost vs. motivation
• Model opportunistic behavior, side effects,
and blind spots
Explore motivation potential and miss-
specification in audits
Refine reward system
Prepare legal and accounting
• Support contract design
• Prepare accounting treatment
Integrate with performance assessment
• Design opportunities for personal progress
tracking
• Outline supervisor talk integration
Prepare communication and teaching toolkit
Provide feedback channels
• Create forum to file complaints
• Prepare reward-fit survey
Communicate and teach
Start system
Design incentives with client in three step process

21. 20
R & R Tools

22. 21
Diagnostic tools
to evaluate how
R & R is
delivered
Engagement for Results
The Employee Engagement Assessment
measures employee engagement across
key disciplines and motivators
Employee responses to EEA survey
• 35-question survey mapped against
response database of over 340
companies
• Existing client Pulse survey data may
also be mapped to EEA questions
Analysis benchmarks company results
against response database by quartile
• Results indicate strengths /
weaknesses on each section and
individual question
• Analysis done at enterprise or BU
level, and by employee level or
function
Assessment Toolkit
Assessment evaluates R & R programs in support
of large-scale change adoption
Assessment question responses
• Diagnostic question sets indicate
performance level on 1-5 scale
• Dashboard tracks program metrics and KPIs
to measure impact and effectiveness
Results identify areas for improvement based on
each section scores
• Assessment questions look across
organization for best-in-class metrics and
coordination
• Program questions derived from best
practices
Regular, objective evaluation critical to
maintaining sustained excellence

23. Thank you
Presented By
George B. Lampere, Ph.D.