This document outlines an employee reward and recognition system for a hospital. It defines key aspects of the system including performance evaluations, compensation, and monetary and non-monetary rewards. Performance is evaluated through self, peer, and manager reviews. Rewards include salary increases, bonuses, additional time off, discounts, and training. Surveys measure employee satisfaction with the system. The goal is to recognize good performance, retain staff, and improve satisfaction.

1. Employee Reward and
Recognition System
Pamela Billings, Heather Camp, Sandra Farneti,
DeAnna Francisco, Stephanie Hawley, Renita Holmes,
E. Nwanna, Inez Rodriquez
The University of Alabama

2. Objectives
• Define performance evaluation process
• Define compensation process
• Discuss the Reward and Recognition Design
• Describe the concept of mediocre performance rating
• Discuss alternative reward and recognition programs
including nonmonetary rewards,
• Describe the use of surveys to evaluate patient and
employee satisfaction
• Analyze the effectiveness of performance evaluation

3. Introduction
• Nurses, for many years, have paved a road for what they believe is
right. Hospitals have noticed retention, career ladders and an
incentive prevent turnovers while increasing staffing satisfaction.
Retention for hospitals to maintain trained nurses have become a
focus for many Chief Executive Officers (CEO). Training and hiring
nurses within the hospital has become very costly for many
institutions. It costs approximately ten thousand and sixty four
thousand dollars to train newly hired nurses. This cost is noted from
high turnovers, cost of orientation, and decreased productivity
(Wieck, 2009).
Retention and job satisfaction has become important aspects for
nurses and hospitals to evaluate when posting and applying for new
careers within facilities. Many facilities are identifying benefits that
will interest and retain employees such as: career ladders with pay
incentives, preferred scheduling and more choices with benefit
options.

4. Introduction
• An effective performance evaluation
system must evaluate the work being
done without causing job dissatisfaction
for the staff.
• The system must also provide fair, honest,
objective feedback to the staff while
avoiding invading the privacy rights of the
person being evaluated.
(George & Haag-Heitman, 2011)

5. Overview of Performance
Evaluation Process
• Defines performance evaluation

6. Performance Evaluation
• Performance evaluation is a valuable tool
for an organization. Evaluations are a
“motivational tool for managers to
communicate expectations and provide
feedback” (Smith, Gunzenhauser, & Fielding, 2010)
• Evaluations should be constructive,
provide feedback on performance and
allow opportunities to highlight actions that
support the organization. (Smith, Gunzenhauser, & Fielding, 2010)

7. Performance Evaluation
Measuring performance
• Most performance evaluation systems use a scale with
numbers or words that measure success.
• For example, performance may be ranked from 1 to 5,
with 5 being exemplary, or by using words from
“exemplary” to “does not meet.”
• The measures should be clearly defined so they can be
assigned consistently.
• The scores for each criterion on the evaluation are then
multiplied by the weight and added to determine a total
score. The form also has an area for feedback for each
job function and behavioral aspect being evaluated.

8. Performance Evaluation
Performance Evaluation
Three Components
• Peer Evaluation
• Self-Evaluation
• Manager Evaluation
• Combined input to determine total points

9. Performance Evaluation
Peer Evaluation
• One of the essential components of
professional nursing practice
• Ensures the quality and safety of both the
care provided and the care provider.
• Implies that the nursing care delivered by
a group of nurses or an individual nurse is
evaluated by individuals of the same rank
or standing
(George & Haag-Heitman, 2011).

10. Performance Evaluation
Self-Evaluation
• Self-assessment is part of a good
evaluation system.
• Staff members feel more involved in the
assessment process if their input into their
own work style is sought and included in
the evaluation
(Shaneberger, 2008)

11. Reward and Recognition System
Design
Manager Evaluation
• The manager compiles all of the
information about the staff member being
evaluated
• Information comes from the self-
evaluation, peer evaluations, and from the
manager’s performance log
• Performance is shared face-to-face

12. Overview of Compensation
Process
• Create a compensation system that
recognizes the multiplicity of employee
values and needs.
• The system should support retention and
guide employees to new opportunities
when:
– Organization’s needs change
– Required job skills change
– Employees’ desires change.
Porter-O’Grady & Malloch (2011)

13. Overview of Compensation
Process
• Become a partner with employees in
managing their works & planning for the
next position.
• Be vigilant & persistent when
implementing and maintaining an
compensation system and recognition &
reward program.
Porter-O’Grady & Malloch (2011

14. Overview of Compensation
Process
• Stay focused and committed despite
resistance from those who would like the
current compensation system &
recognition & reward program to remain
the same.
Porter-O-Grady & Malloch (2011)

15. Reward and Recognition System
Design
 Three key components of the new pay
system
• Simplified coverage
• Agreed job descriptions and job evaluation
• Knowledge and Skills Framework (KSF) –
(career development framework)

16. Reward and Recognition System
Design
Mediocre Performance Rating
• Awards nothing to employees who have a
mediocre performance rating.
 Use this as an opportunity to counsel
employees and set goals for improvement

17. Reward and Recognition System
Design
• Includes monetary and nonmonetary
rewards

18. Reward and Recognition System
Design
Monetary Rewards
• Paid to employees based on their commendable
job performance
• Essentially involve in the form of money
• Include salary increases, profit sharing, stock
options and warrants, project bonuses, festival
and/or performance linked scheduled bonuses,
and additional paid vacation time
(Kyani, Akhtar, & Haroon, 2011)

19. Non-Monetary Incentives
 The purpose of non-monetary o Employee discount
incentives is to reward associates for
excellent job performance through programs
opportunities (Ballentine, McKenzie, • Phone service
Wysocki & Kepner (2003).
• Relocation expenses • Personal computers
• Tuition reimbursement • Theme parks
• Flexible work hours • Movie tickets
• Free coffee • Meal discounts
• Pleasant work environment
• Training opportunities
• Assistance with childcare
expenses
• Free parking

20. Common Recognized acts:
• Length of service
• going above and beyond regular work,
• boosting the financial bottom line
• Exemplary behavior that aligns to the
organizational values,
• high quality work or results,
• faster completion of regular work projects
(HR Focus, 2012)

21. Keys to Recognition Program
Success
• Support from Senior management
• Clearly defined goals and objectives
• Consistent promotion and communication
to employees
• Appropriate incentives and rewards based
on employee demographics
• Up to date information on industry trends
and non-cash award tax laws and
regulations (Leibow, 2010)

22. Measuring Reward and Recognition
Systems: Key Performance Indicators
• Aligned with companies:
– Mission
– Vision
– Values
– Corporate strategy
• Employee satisfaction:
– Ensure there are specific questions related to
rewards and recognition as part of employee
satisfaction survey.
(HR Focus, 2012)

23. Conclusion

24. References
• American Nurses Association (1988). Peer Review Guidelines. American
Nurses Association, Kansas City, MO.
• Ballentine, A., McKenzie, N., Wysocki, A. & Kepner, K. (2003).The Role of
Monetary and Non-Monetary Incentives in the Workplace as Influenced by
Career Stage. Retrieved from http://edis.ifas.ufl.edu.
• Edwards, Marc T. & Benjamin, Evan M. (2009). The Process of Peer
Review in the U.S. Hospitals. Journal of Clinical Outcomes Management,
16(10), 461-467.
• George, V. & Haag-Heitman, B. (2011).
Nursing peer review: the manager's role. Journal of Nursing Management,
19(2), 254-259
• Kyani, A., Akhtar, S. & Haroon, M. (2011).
Impact Of Monetary Rewards On Achievement Of Employee's Personal Goals.
Review of Management Innovation & Creativity, 4(10),58-69.
• Nelson, B. (1994). 1001 Ways to Reward Employees. New York: Workman
Publishing.

25. References
• Porter-O’Grady, T. & Malloch K. (2011). Quantum leadership: Advancing
innovation, transforming healthcare. (3rd ed. Pp. 448-449). Sudbury, MA:
Jones & Bartlett
• Shaneberger K. (2008). Staff evaluations: more than a formality. OR
Manager, 24 (10), 24, 2.
• Smith, Kathleen N., Gunzenhauser, Jeffrey D., & Fielding, Jonathan E.
(2010).
• Reinvigorating Performance Evaluation: First Steps in a Local Health
Department. Public Health Nursing, 27(5), 425-432 .
• What Reward, Recognition Program Awards Are the Most Valuable? . (2012). HR
Focus, pS1-S4, 4p.