- Nearly 9 out of 10 companies offer recognition programs to acknowledge employee contributions. Recognition programs are generally less expensive than other forms of compensation. - The key purposes of recognition programs are to motivate high performance, reinforce desired behaviors, and create a positive work culture. Recognition can include both monetary and non-monetary rewards. - Successful recognition programs have characteristics like senior management support, employee input in design, simplicity, tailored rewards, clear communication, and timely recognition of specific achievements.

1. REWARDS AND RECOGNITION

2. Introduction

3. Reward & Recognition External Data
• Recognition Program in Place? 84% 87%
• Nearly 9 out of 10 companies offer some sort of
recognition programs for employees
• Reward and Recognition programs are generally less
expensive than base pay, benefits, stock options and
bonus
3
200
6
200
7
Cnbc survey -2008

4. The Four Elements
PP
OO
RR
TT
raise
pportunity
hank you
espect

5. PROGRAM PURPOSES
• Recognize individuals and teams in a
timely and effective way.
• Provide a continuum of opportunities
to acknowledge and recognize members
of the organization.
• Recognize that each individual can make
a difference.
• Be a fair and flexible practice that is woven
into the fabric of the org culture.

6.  Reward refers to all of the monetary, non-monetary and
psychological payments that an organization provides for its
employees in exchange for the work they perform.
 Reward (or compensation) management is a core facet of the
employment relationship.
 An organization can provide two types of reward: extrinsic and
intrinsic.
 The mix of extrinsic and intrinsic rewards provided by the
employer is termed the reward system, the monetary or economic
element of the reward system is termed the pay system.
The Nature of Reward system

7. Reward objectives
Any organizational reward system has three behavioral
objectives:
1. membership behavior to recruit and retain a sufficient
number of qualified workers
2. task behavior to motivate employees to perform to the
fullest extent of their capabilities
3. compliance behaviour to encourage employees to
follow workplace rules and undertake special
behaviours beneficial to the organizations without
direct supervision or instructions.
A MODEL OF REWARDS SYSTEM

13. Benefits +
Reward and
Recognition
+ Variable Pay + Base Pay =
Total
Rewards
Total Rewards Components

14. R&R Overview
14
Base Pay
Bonus
Benefits Equity
Rewards & Recognition
Top objectives for R & R programs include motivating high performance, reinforcing
desired behaviors and creating a positive work environment.
R & R programs have grown over the years from informal “thank you’s” to plans with a
written strategy and more defined budget.

15. What is Recognition?
“Recognition is any thought, word, or deed towards making someone feel
appreciated for who they are and recognized for what they do.” 1
“Recognition can be a strategic tool for shaping behavior and moving an
organization in a desired direction.” 2
“Recognition is something a manager should be doing all the time—it’s a
running dialogue with people.” 3
15

16. Why Focus on Recognition?
– Employees identify recognition as one of the most effective
motivators1
– Even small increases in supportive practices are associated with
decreased turnover and increased sales/profitability2
– Employees who feel that their organization values them are more likely
to value their customers2
– Appreciation and/or praise are among the top three drivers of employee
motivation and engagement across a variety of industries and
companies3
16

17. 17
Recognition in General
To Recognize is to
Acknowledge, Praise, Encourage
Immediate- handwritten note fine
Simple- thanks on back of business card
Timed well- right after stressful period
Public- share with boss
Personal- give credit,use name,spend time
Celebratory- potluck, retreat
Sincere- heart felt

18. Evidence from Best Employer Studies
•Best Employers around the globe have cultures that emphasize recognition
•In the US: Fortune’s 100 Best Companies to Work For
• All of the 100 Best Companies recognize employees’ outstanding performance or service
using special awards and programs
•50 Best Companies to Work for in Canada
• Best companies in Canada have people practices that communicate and reinforce the organization’s
culture and values, including recognition of outstanding performance
Hewitt Associates
18

20. Recognition types
• Peer Recognition
• Formal Recognition

21. • Program design by staff
• Nominations from staff
• Award selection by committee
• Limited involvement of
administration
Design Goal:
Peer Recognition

22. • Awards Ceremony.
• Citation, certificate and cash
award.
• Luncheon.
• Pictures on
webpage,magazines.
Design Goal:
Formal Recognition

24. 24
Achievements Recognized by Fortune’s 100 Best Companies
to Work For
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Outstanding
individual/ team
performance
Anniversaries/
service
Goal achievement Project completion Meeting/exceeding
financial target
Patents/ innovative
ideas
Managerial/Professional Employees Hourly/Administrative Employees
Percent of
Companies

25. 25
Awards Used by Fortune’s 100 Best Companies to Work For
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Communication Parties Cash Prizes Time Off Trips Stock
Managerial/Professional Employees Hourly/Administrative Employees
Percent of
Companies

26. Reward & recognition approach –
outcomes• Reduced level of employee turnover – down to 10% on average;
• Reduced levels of sickness absence being sustained per yr.
• Improved recruitment into HR practises;
• Reduced business mileage due to travel for work plans being integrated into reward
strategy;
• Improved employee satisfaction levels: 73% satisfied;
(Source: Ipsos MORI 2007 Survey - compared to 62% LA / public sector comparators and 63% overall).
• Improved employee advocacy about the Council as an employer: 50% speak highly;
(Source Ipsos MORI 2007 Survey - compared to 33% LA / 41% overall).
• Satisfaction with reward and benefits (excluding salary): 67% satisfied;
(Source Ipsos MORI 2007 Survey – compared to 58 % LA/public sector and 58% overall).

27. Future Reward and recognition
Challenges
• Implementing Annual Total Reward Statements, delivered via e-business suite;
• Implementing more ‘flex’ in the benefits offering and enhancing the choice for
individual employees, e.g. trading salary for extra holidays, benefits package for
‘carers’ and not just childcare;
• Increasing the level of workforce knowledge and skills around reward by offering
financial education for the workforce in partnership with the Financial Services
Authority
• Renewed focus on internal communication and manager role in the ‘reward
relationship’;
• Changing the nature of our reward delivery with the implementation of a Shared
Service joint venture;
• Doing it all within tighter resource constraints!

28. 28
Reward and Recognition Program Design
• What?
• Why?
• Characteristics of a Successful Program
• Plan Design Steps
• Best Practices Examples

29. 29
Trends and Best Practices
• Rewarding teams and individual
• Realization that some employees value recognition as much as merit
increases and bonuses
• Employees recognizing employees
• Greater use of informal/spontaneous awards
• Improved publicity of winners
Biggest obstacle to success:
• Communication
• Management support

30. 30
Characteristics of Successful Programs
• Senior management support and involvement
• Include employees/managers in design and implementation
• Keep programs simple and easy to administer
• Tailor rewards to individual interests, needs, desire
• Match the reward to the achievement
• Communicate, Communicate, Communicate!
• Be timely and specific
• Make sure each employee understands what they did to earn the reward