Most successful businesses today thrive on a culture based on valuing employees, and recognizing and rewarding them for their contribution towards organizational growth. That is why it has become important for organizations to have an HR strategy where employee recognition and appreciation form the core of its business operations policy. It ensures consistently high motivation and engagement levels among employees. However, it takes considerable time, effort and attention for the actual development of an effective employee appreciation and rewards policy. Experimenting with a combination of recognition policies followed by other organizations often fail to provide the desired results.
Developing an effective rewards and recognition policy
The first and the foremost thing to understand for developing an effective recognition and rewards policy is that every organization is unique. Even when organizations are in the same industry, their operating policies and processes are most often different, however minimal the difference might be. Hence the rewards and recognition policy for each organization needs to be unique and tailored based on the specific needs and expectations of the members of its workforce. Therefore, in order to create a truly beneficial and effective reward and recognition policy, it is important for organizations to intelligently design the same. A few key aspects of the design process are described in brief as follows:
- Identify the objectives of recognition policy
Identifying the objectives that the organization expects to fulfill through the program is the first step in the direction of creating effective employee rewards and recognition policy. Identifying the objectives includes integrating the core values and business objectives of the organization with the rewards program. In addition, the organization needs to make sure that the policy adheres to the established operating principles and business processes. It is also important to take the overall workforce profile as well as the diverse groups within and their significance in driving business growth.
- Set meaningful rewards criteria
A recognition policy can be successful only when it based on the principle that ensures that every member of the workforce gets a fair chance of being rewarded. For this, it is important to clearly define the specific criteria that employees would have to fulfill to be considered for recognition. The employees should not perceive recognition as something that they can attain through flattery or by having good relationships with their managers or team leaders. Setting meaningful criteria ensures that every employee has an equal fighting chance to be part of the program, irrespective of their level and role within the organization. The criteria should include dedication, hard work, achievements and initiatives of the employees, and even specific behavior patterns.
- Learn about employee motivation needs
Organizations need to understand the fact that every employee is different and hence has a different temperament and personality. This essentially means that they value different things and are motivated by different factors. Since the objective of an employee recognition policy is to enhance employee engagement, understanding their motivation needs is of great significance to establish a strong base for efficient rewards and recognition programs. The process can be time-consuming and even challenging when performed manually. However, using quick-fill online survey forms featuring relevant questions can simplify the task and provide the requisite information to the organization.
- Ensure the greater involvement of team leaders
Team leaders, line managers, and supervisors are better placed to access the overall performance, contribution, and achievement of employees. That is why ensuring their greater involvement in the development of an organization’s recognition policy is essential for its success. This is simply due to the fact that team leaders and supervisors have a better understanding of the everyday responsibilities of employees and the manner in which they fulfill the same. The feedback provided by them is likely to be more insightful than others who are less involved in the day-to-day business operations and people management. Their opinion helps to add credibility to the decision of rewarding specific employees without causing dissent among other members of the workforce.
- Focus on variety
It is important for the organization to ensure some level of variety in the employee recognition program being developed. This helps ensure that the program retains its novelty for long and that the employees have something to feel excited about. Variety may be implemented in the form of different types of recognition, the frequency of recognition, or even the introduction of new and innovative ideas from time to time.
Keeping the above principles in mind and with the right intent, organizations can develop effective rewards and recognition policies that can ensure the happiness and satisfaction of its workforce and result in greater business growth.