The document outlines a reward strategy for employees in the retail sector. It discusses developing a reward system with four main stages: assessment, design, implementation, and evaluation. The assessment stage involves analyzing current policies and employee attitudes. Reward design identifies monetary and non-monetary incentives like sales commissions, team incentives, and special rewards. Implementation includes setting goals, tracking accomplishments, and allocating rewards. Effectiveness is evaluated using metrics like productivity, satisfaction, and retention from reports. The strategy aims to motivate employees and give the organization a competitive edge through a well-designed rewards program.

1. REWARD
STRATEGY-RETAIL
SECTOR
CREATED BY
ANIL VERMA,
BITS - PILANI

2. AGENDA
Assumptions made and Brief of
Business Strategy
Reward Strategy : Stages
Reward Design
Evaluation
Implementation
Assessment Stage
Reward Model
Conclusion

3. ASSUPMTIONS
Industry chosen – Retail
The company has 200 offices across India, whole data must be maintained on ERP (Enterprise Resource Planning)
Software.
The ERP has different modules including Human Resource Management (Which can be customized to include the
Reward System, and goal management system)
BUSINESS STRATEGY
Employees are assigned to a store outlet and there are levels provided according to the job profile and the
department. The requirements for completing the assigned goals can be met.
The pay structure is vertical.
Business strategy is on cost leadership. We aim to become best retailers in the terms of revenue and customer
experience.
Short-term goals changes every quarter and with advent of any new event. Goals given to employee will be in
tandem with the goals of Organization.

4. REWARD STRATEGY: STAGES
Reward Strategy has 4 main stages.
Assessment:
The Project team will gather data to evaluate the possibility of Reward System in the organization. Team will gather
the data about most feasible rewards and how it will motivate the employees.
Reward Design :
The data Guides the design phase during which the team will identify and analyze potential reward strategies. They
will also look for any conflict that may arise, and how that will be solved.
Implementation :
In this phase Reward Strategy will be put into operation.
Evaluation:
The team will evaluate the effectiveness of the strategies that have been executed

5. ASSESSMENT STAGE
Analysis of Current Policies:
Current Policies of the organization needs to be analyzed for the possibility of such a system
Assessing the attitude of employees towards rewards:
What kind of Rewards does the employees are looking for, and how is it going to impact the
organization’s goal
Liaising with Senior Management:
Discuss process design and implementation with senior management and secure initial
endorsement. Communicate information about the process to all organization members
Writing Assessment Report:
Finding of the analysis of current policies, likings and outlook of employees, confirmation of Senior
management has to be documented in the Report.

6. REWARD DESIGN
Compensation:
We are going to follow a vertical structure where the employees are paid as per the hierarchy and they will be
given monetary as well as non-monetary incentives
CRITERIA INCENTIVE ADVANTAGES
Individual Performance Sales commissions, piece
rate pay
Impact on Productivity
30%
Group Performance Goal sharing, gain-sharing,
team based incentive
plans
Encourage Team Work
Best in Class in
Organization
Special Reward, Retention
bonus, Intrinsic Rewards
Creates a role model for
others to follow

7. REWARD MODEL
Pay
• A base Pay - Vertical Pay structure, best in the market
• Annual Bonuses – Based on performance
• Long-term Incentives – Retaining bonus
• Promotion - Base-pay increases based on potential to
perform new job
• Appraisal - Base-pay increases based on length of
service with the organization
Benefits
• Health Care – health care to employees
• Perks - 15% discount on brands and 25% on in-house
brands
• Flexibility - Flexible working hours, rotational shifts
• Holidays - flexible holidays
Learning and Development
• Training – Skill development through on- or off-the-job
Instruction training
• Performance Management - goal setting and feedback
to develop skills
• Career Development – Mentoring to various roles
• Progression
Work Environment
• Leadership – Senior management can be reached for
any issues and they take care of employees
• Employee voice – Portals where employees can
interact
• Work-life balance – only 5 days a week
• Job work design – recreational activities, fun while
working

8. IMPLEMENTATION
Goal Setting:
• It will be done at the start of the year. It will be discussed with the employee and immediate
supervisor.
• Goals will be with respect to current role and aspiring roles.
• Goals and rewards has to be agreed by both manager and employee.
• The goals can be completed earlier and the employee can ask for the awards.
Goal Accomplishments:
When the goal is completed it will be notified to employee and the manger. It will also be recorded to the
central ERP system for further analysis.
Reward Allotment:
The Awards can be allotted in monetary terms ex bonus on reaching a sales quota.
It also has to be accompanied by acknowledging the contribution of employee to the organization.
Intrinsic Awards:
Monetary Reward has to be accompanied with Intrinsic rewards to motivate the employee. For ex
• Since we have no week off on Sunday and Saturday, should allow employee to take holiday with
their friends in office during any two days of the week
• Rotational work shifts

9. EVALUATION
We will be using various reports and data analytics to measure the effectiveness of the Reward Program
PARAMETERS TO MEASURE DATA SOURCE
Productivity Operational Reports
Job Satisfaction Workforce surveys
Fit with organization’s Strategic Plan Senior Management
Employee complaints Human Resource Information System(HRIS)
Recruitment and retention Human Resource Information System(HRIS)
The data Shown by these reports can be analyzed to check the effectiveness of the Reward Program
For a more concrete approach we can collect the data before and after the implementation of the Reward Program
to understand the impact.

10. CONCLUSION
Each of these phases (Assessment, Reward Design, Implementation, Evaluation) requires careful thought, patience,
and a willingness to solicit input from a wide range of individuals in the organization.
But the effort is worthwhile. A well-thought-out and skillfully implemented rewards program can give our
organization a competitive edge.
It is also up to the mangers how much they can keep their employees motivated, by providing non-monetary awards
which does not cost much but can improve the productivity many-folds. Some of the examples:
• Hand written thank you note
• Keeping stack of favorite drinks and confectionaries in the break room
• Work hours flexibility
• Having cake delivered to the office on their birthdays
• Finding out what these people are passionate about and giving them a gift related to that.
• Having staff appreciation day once a month
• Giving mails for anniversary of joining the company and Personally congratulating them
• Play or relaxation rooms where they can enjoy and relax for some time
• Microwave oven and freezer temperature controller where employees can keep their lunch boxes

11. Thank You