[ITM Bangalore] Employee Reward and Recognition

Employees not only want good pay and benefits, they also want to be valued and
appreciated for their work, treated fairly, do work that is important, have advancement
opportunities, and opportunities to be involved in an organisation.

Recognition and rewards play an important role in work unit and agency programs to attract and retain their employees. It is the day-to-day interactions that make employees feel that their
contributions are appreciated and that they are recognized for their own unique qualities.
This type of recognition may contribute to high morale in the work environment.
Recognition is a leadership tool that sends a message to employees about what is
important to the leaders and the behaviors that are valued. Managers can use this tool to
help employees understand how their jobs contribute to the agency’s overall goals and how
their performance affects the achievement of those goals. Rewards and Recognition also helps as a retention mechanism which In turn helps curb attrition rate.

Recently Infosys CEO Vishal Sikka has gifted 3000 of his top performing employees with iPhone 6 and also wrote a letter to all his employees appreciating and thanking them for their contribution in making Infy a market leader in 2014.
And also HCL Technologies offered foreign trips and Mercedes Benz cars to 130 of its top performing employees.

Recognition can be delivered in a number of ways including a “pat on the back” for the job well done or to “Thank” an employee for his contribution to a project or organisation.

The rewards should be SMART.

.Sincere. Above all else, a good reward should reflect a genuine expression of
appreciation. Token acknowledgements leave something to be desired.

.Meaningful. To endure a motivating influence, rewards should be aligned with the
values, goals, and priorities that matter the most.
.Adaptable. The diverse workplace demands alternatives. Consider creative options to
keep your program fresh. No single reward format works for everyone all the time.
[Recognition should be adapted and valuable to the receiver.]

.Relevant. Some personal dimension is essential to a good reward. No matter how
formal or informal, expensive or affordable, the relevance of any recognition will be
improved with a personal touch – – it’s a little thing that makes a big difference.
[Recognition should be provided by someone of significance to the receiver.]

.Timely. It is important that rewards respond to the behavior they are intending to
reinforce. Don’t let too much time pass or the reward may be devalued and credibility

To ensure that employees tie recognition into the work unit or agency’s strategic goals, be
certain to tell employees what they did right and how it interacts with the goals. Include
supervisors and employees in the development of your recognition program to represent
the values and goals of a diverse cross-section of the work unit or agency.

For many employees, recognition received through the expression of genuine appreciation
for the work they do is a reward. Being involved in a project or receiving special training
may be another’s reward.

In developing a program incorporating gifts or prizes it is possible to cause harm as there is a large audience which do not receive these rewards, hence the rewards and recognition program must be carefully formulated.

Prof. Aruna Kulkarni

Department of HR

ITM Business School – Bangalore