Reward and Recognition

What is recognition?

Acknowledgement and appreciation of employee contributions, achievements or behaviours

Incentive

A reward promised before performance takes place to encourage employees to achieve specific targets

Reward

Actual item or benefit given to employees such as cash or trophies

Main difference between incentives and recognition?

Incentives are planned before performance, while recognition is given after achievement has occured

Which focuses more on financial value: incentives or recognition?

Incentives focus more on financial value

Why is recognition important in organisations?

Recognition improves motivation, commitment, performance and alignment with organisational objectives

Why should recognition not duplicate incentive plans?

Because recognition should reward behaviours and contributions not already rewarded through incentives

What is meant by a total reward system?

A total reward system combines all forms of rewards, incentives and recognition used to motivate employees

Name two ways a total reward system benefits organisations

Increases profits and communicates organisational values

Four main design considerations of recognition plans

1. Participants

2. Criteria

3. Nomination & selection process

4. Awards

What are participants in recognition plans?

People or groups eligible to receive recognition

Traditionally, which employees were mainly recognised?

Lower-level employees

Which trend has developed regarding participants?

Recognition now includes teams, groups and employees at all organisational levels

What are criteria in recognition plans?

Standards employees must meet to be recognised

Modern recognition criteria are strongly aligned with what?

Organisational strategies and objectives

What are hard measures?

Objective and measurable criteria such as sales or safety statistics

What are soft measures?

Behaviour-based criteria such as teamwork and leadership

Give two examples of soft measures

Teamwork and customer care

What is the nomination and selection process?

Process used to choose employees for recognition

Who can now be involved in the nomination process?

Managers, peers and joint employee-management committees

Why is employee involvement in nomination important?

It increases fairness and empowerment

What are two categories of awards?

1. Symbols or utilities

2. Points awards

What are symbols or utilities?

Physical awards with lasting value

Give two examples of utilities

• Sporting equipment

• Electronic equipment

Give two examples of symbols

• Trophies

• Certificates

What are points awards?

Points awards allow employees to earn points that can later be exchanged for rewards

Who can award points in points-based systems?

Managers, peers or companies

Why are symbolic rewards valuable?

They have lasting emotional and trophy value

What is the lottery scheme?

A reward system where employees qualify for bonuses and lottery prizes if organisational goals are achieved

Who may be excluded from the lottery scheme?

Employees absent without leave(AWOL)

What is a strike factor?

Key performance factor chosen for the scheme

Give one strike factor example

On-time landing and departure for an airline

What reward is first given if the goal is achieved?

Small cash bonus

What happens if the goals are achieved continuously over time?

Employees receive lottery tickets for a major prize draw

How many critical success steps are involved in designing a scheme?

Seven

What is the first step in scheme design?

Forming and mandating the design team

What is the second step in scheme design?

Gather research and identify best practices

What is the third step in scheme design?

Establish plan objectives and desired outcomes

What is the fourth step in scheme design?

Create the plan structure

What is the fifth step in scheme design?

Determine plan support requirements

What is the sixth step in scheme design?

Select the reward vehicle

What is the seventh step in scheme design?

Project plan the overall scheme

Why should recipients be recognised publicly?

Public recognition increases motivation and reinforces positive behaviour

Give three examples of informal recognition

• verbal thank you

• thank-you card

• publishing achievements in a newsletter

Give two advantages of monetary rewards

• Easy to administer

• Easy for employees to understand

Give two disadvantages of monetary rewards

• They may become expected

• They have no lasting trophy value