Appreciation for own work is a fundamental need of every dedicated employee. Rewards and recognition (RnR) in organizations could be top-down, down-top or peer-to-peer by nature. Across the employee life-cycle, organizations recognize their contributions and motivate them with performance awards (spot, monthly, quarterly and annual), long service awards, awards to celebrate employee’s personal occasions, team awards, joining delights, referral rewards, wellness rewards, festival rewards, financial rewards etc.
Reward practices across organizations
Across organizations globally, the following reward practices are frequently observed:
- Peer-to-peer recognition: Peer-to-peer recognition makes for a wonderful gesture of appreciation for both, the one who compliments and the one who is being complimented. Along with top-down and down-top recognition approaches, it imparts a 360 degree view to rewards and recognition in organizations. While top-down recognition is a convention across industries, words of compliment from colleagues can do wonders to boost employees’ morale. All it takes is sharing a congratulatory note or a verbal praise with a colleague.
- Financial and psychological rewards: Rewards for employees could be financial or psychological by nature. Global research has affirmed that though the psychological recognition need of employees remains higher than their need for financial rewards, instruments such as cash bonuses and perks remain a hygiene factor across organizations and go hand-in-hand with psychological rewards, the examples of which are experiences, team building games, fun activities, outbound programs, training boot-camps etc.
- Performance awards: Employees deserve recognition for their focused contribution made to business from time to time. Performance awards such as spot, monthly, quarterly and annual make for a structured approach to award employees based on merit and business results obtained.
- Long service awards: Apart from performance, commitment and consistency at work also qualifies as a metric for recognition. Employees who cross the milestones of 3, 5 10 and more years with their organizations exemplify loyalty. Long service awards communicate a token of heartfelt thanks to these employees.
- Festival rewards: Celebration of festivals such as Diwali and occasions such as New Year make for an opportunity to establish camaraderie among employees. This bonhomie can be sparked through informal conversations and activities that fit the occasion, as well as organizations wishing employees well through festival rewards.
- Birthday/Anniversary awards: Personal occasions of employees provide organizations with the opportunity to communicate that they value them as a part of the family. When employee occasions such as birthdays, wedding, anniversaries and parenthood are celebrated in office, coupled with gifts or rewards, employees feel a welcome break from regular routine and feel more connected to their work and the organization.
- Team awards: Team work is indispensable to the success of any organization and deserves to be recognized similar to the way individual contribution is done. Organizations that give awards to high performing teams, in effect, inspire their employees to learn to work together more closely and efficiently.
- Joining Delights: Organizations hire talent in order to increase employee strength (basis business requirement) or to counter attrition. A start for new employees on a positive note in the form of joining rewards exemplifies the adage – well begun is half done.
- Referral rewards: Referrals are one of the most effective ways for organizations to build a workforce of diverse and relevant talent. When existing employees make efforts to close the gaps in your hiring process, they deserve to be treated with referral rewards.
- Wellness rewards: What makes employees stay and work with organizations for long? Their wellness is one of the factors. When organizations stretch beyond convention to institutionalize wellness practices for their employees, their human capital is bound to rise.
Across these rewards and recognition practices, innovative rewards such as experiences and vouchers can equip organizations to make inroads into employee culture and connect with them at a personalized level. Rewards such as adventure, gourmet, travel, hobbies, wellness and activities rejuvenate employees and establish a two-way communication, enabling organizations to stay closely connected with their employees.
The need for strategic management of rewards and recognition program goes along with the nature of rewards and recognition adopted. A gamification-based use of cloud technology to manage total rewards program can do wonders to stimulate employee interest, engage them and boost their performance.
Premier rewards, recognition and employee engagement solutions providers to organizations on a global scale (such as Xoxoday) can help your business tap into the latent potential of your workforce. It won’t be an overstatement to say that strategic rewards and recognition can add immense value to business from within.