Three big questions on total rewards
Feb 4th 2013
In order to formulate an effective total rewards strategy, companies need to have a structured approach. Answered below are three questions that need to be answered to create a competent and progressive rewards and recognition plan.
What are the categories of rewards and recognition?
Rewards & recognition programmes can be classified in multiple ways, largely depending on their target segments, structure and micro-objectives. Some of these are “time based recognition awards”, “instant gratification” oriented awards such as spot awards, job well done, smileys or stars, a pat on the back, etc, “functional excellence awards” for exceptional performance, and “engagement based” rewards for occasions such as birthdays etc.
Other common forms of R&R categories are “individual” or “team” based awards; rewards based on the target segments such as “employees”, “customers” or “channel partners” reward programmes and even as the name suggests: “monetary” and “non-monetary” R&R programmes.
What are the current trends and how much do companies invest in rewards and recognition in India?
Over the years, corporations in India have recognized the importance of reward, loyalty and incentive programmes, which directly impact revenue, retention, product adoption and overall health of a business. While airlines, banks and retail companies were early adopters in this category, reward programmes have been largely absent or simply ad hoc in many traditional blue-chips and SME’s. Consequently, such programmes are becoming more structured, gaining earmarked budgets and resources and increasingly being outsourced to experts.
Now, recognition is social. Our RewardsPLUS engine provides an intra-departmental social recognition platform, which allows employees and channel partners to see their counterparts being rewarded and personally congratulated, on a common online medium. Many technology companies, which have in-house reward programmes, are further integrating the social recognition element with specialized product catalog providers on the intranet, Internet and mobile applications.
What motivates employees in India and what are the prevalent strategies for R&R?
A large part of employee attrition is attributed to lack of recognition in workplace. Though many leaders pursue recognition strategies, there is still a high degree of dependency on the immediate manager to execute towards building such a culture. There is thereby emerging popularity for technology led social recognition programmes, which drive uniform and syndicated usage, eliminate “favoritism” and yield high excitement among the workforce. Recognition is as simple as saying ‘Thank you’ or as elaborate as a formal felicitation at a company event. Increasing number of enterprises now provide a “suite” of products, including company’s own branded merchandize, for their employees to redeem from their accumulated recognition points.
Vikramjit Singh Sahaye, Marketing and Operations Director, benefitsPLUS
As published in PeopleMatters