Transcript REWARDS AND RECOGNITION.ppt

REWARDS AND RECOGNITION
Introduction
Reward & Recognition External Data
2006
•
Recognition Program in Place?
84%
2007
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
Cnbc survey -2008
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The Four Elements
Praise
O pportunity
R espect
Thank you
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.
The Nature of Reward system
 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.
A MODEL OF REWARDS SYSTEM
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.
Total Rewards Components
Benefits
+
Reward and
+
Recognition
Variable Pay +
Base Pay
=
Total
Rewards
R&R Overview
Bonus
Base Pay
Benefits
Rewards & Recognition
Equity
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.
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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
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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
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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
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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
using special awards and programs
employees’ outstanding performance or service
•50 Best Companies to Work for in Canada
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Best companies in Canada have people practices that communicate and reinforce the organization’s
culture and values, including recognition of outstanding performance
Hewitt Associates
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Recognition types
•
Peer Recognition
•
Formal Recognition
Design Goal:
Peer Recognition
• Program design by staff
• Nominations from staff
• Award selection by committee
• Limited involvement of
administration
Design Goal:
Formal Recognition
• Awards Ceremony.
• Citation, certificate and cash
award.
• Luncheon.
• Pictures on
webpage,magazines.
Achievements Recognized by Fortune’s 100 Best
Companies to Work For
Percent of
Companies
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Outstanding
individual/ team
performance
Anniversaries/
service
Goal achievement Project completion Meeting/exceeding Patents/ innovative
financial target
ideas
Managerial/Professional Employees
Hourly/Administrative Employees
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Awards Used by Fortune’s 100 Best Companies to Work
For
Percent of
Companies
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Communication
Parties
Cash
Prizes
Managerial/Professional Employees
Time Off
Trips
Stock
Hourly/Administrative Employees
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Reward & recognition approach –
outcomes
Reduced level of employee turnover – down to 10% on average;
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Reduced levels of sickness absence being sustained per yr.
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Improved recruitment into HR practises;
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Reduced business mileage due to travel for work plans being integrated into
reward strategy;
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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).
Future Reward and recognition
Challenges
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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;
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Increasing the level of workforce knowledge and skills around reward by offering
financial education for the workforce in partnership with the Financial Services
Authority
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Renewed focus on internal communication and manager role in the ‘reward
relationship’;
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Changing the nature of our reward delivery with the implementation of a Shared
Service joint venture;
•
Doing it all within tighter resource constraints!
Reward and Recognition Program Design
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What?
Why?
Characteristics of a Successful Program
Plan Design Steps
Best Practices Examples
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Trends and Best Practices
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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
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Characteristics of Successful Programs
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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
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