Key Points to keep in mind while developing a successful employee rewards program

Key Points to keep in mind while developing a successful employee rewards program

Making employees aware of how much they are appreciated is essential for organizations seeking to improve their overall bottom line. In this context, employee rewards programs can prove highly motivational and help organizations derive the benefits of higher employee engagement, productivity, and retention. However, in order to ensure the success of such programs, they need to be designed in an intelligent manner and implemented with great care. It is also important for organizations to ensure that these programs need to be developed in a manner that makes them customizable to fit the company culture. Given below are a few of the most important points that need to be kept in mind while developing a successful employee rewards program:

Frequency of rewards

The modern work environment is extremely stressful and competitive, which is why it is important to recognize the efforts of the employees quite frequently. In fact, organizations need to do away with the tradition of rewarding and recognizing their employees on a yearly or quarterly basis. Frequent recognition is likely to reassure the employees constantly that they are being valued and appreciated for their small and big achievements.

Making recognition spontaneous

It is important for organizations today to ensure that the employee recognition program is lightweight and spontaneous. This means that recognition should not be confined to a certain schedule and should be offered as and when an employee does something that is worth appreciating. Such spontaneous recognition is deemed more authentic and fills the employees with a sense of gratitude.

Rewarding in time

Rewards and recognition can provide the best results only when they are offered on time. Delay in appreciating the efforts and achievements of the employees simply to adhere to a pre-defined timeline can make the whole process ineffective. This is because people tend to quickly forget the achievements of others. Delayed recognition not only diminishes the sense of achievement for the employees in question but also fails to motivate their peers.

Be specific about the behaviors to be rewarded

Rewards and recognition should be associated with specific achievements and actions of the recipients and thus enhances its value. A successful rewards program should clearly outline the criteria for which the employees are being appreciated. Even any form of verbal or written recognition may seem incomplete unless it specifically states the task or action for which praise is being bestowed on the employees.

Equal opportunities for participation

A great recognition program should level the playing field for all members of the workforce. This essentially means that the program should encourage participation from employees working at various levels within the business hierarchy. In order to keep the program well-organized, it may be divided into sections, with each section covering a specific level of employees. Such an approach is sure to boost employee motivation and engagement across all levels within the organization.

Ensure the highest level of transparency

If for any reason, the workforce believes the rewards and recognition system to be biased, it will render the process completely useless and ineffective. Hence it is important for an organization to ensure complete transparency in designing and while implementing the rewards program.  For this, they need to take their workforce into confidence by sharing with them the most important aspects of the program from time to time.

Maximum visibility 

Making the rewards program visible means that the employees are appreciated and rewarded for their achievements on a more public platform. Maximizing the visibility of a rewards program ensures that the other members of the workforce feel inspired by learning about the commendable work done by a colleague. It motivates them to make a similar positive contribution towards organizational growth and receive similar appreciation and recognition for their efforts.

Alignment with business objectives

Recognizing great work is important, however, if it is not relevant for meeting business objectives, it becomes more of a formality. On the other hand, when a reward program that is properly aligned with the business objectives, employees are likely to make a greater emotional investment towards fulfilling them. This helps in bridging the gap between ‘the organization’ and ‘my organization’  for employees and motivates them to advance their own growth along with the growth of their organization.

Make the program measurable

It is important to ensure that the rewards program being developed is measurable. This means that the organizations should be able to quantify the improvement in employee engagement, motivation and productivity after the implementation of the program. It also helps the organizations to identify any drawbacks or shortcomings in the program that need to be rectified to get even better results.

The above-discussed aspects need to be given serious thought and consideration to ensure that the employee reward and recognition program being developed is beneficial and satisfying for both the organization as well as its employees.

Useful tips for setting up an effective Employee Rewards Program

Useful tips for setting up an effective Employee Rewards Program

Most business organizations today are aware of the importance of rewarding their employees to enhance their sense of satisfaction and loyalty. In addition to being a good HR practice, it helps in boosting the morale of employees and makes good business sense. However, when it comes to actually creating an effective employee rewards program, most organizations are unaware of where to begin. Hence, they often resort to throwing money at employees in the name of rewards, which is neither feasible nor effective in providing the aforementioned results. So, it becomes essential for companies to intelligently plan and implement an employee rewards program. Discussed below are some useful tips that can help organizations to develop such a program.

Learn what motivates Employees

Employee temperaments and personalities differ significantly which essentially means that the things they value and gain motivation from are also quite distinct. The good news is that despite these differences, there are still some common motivation patterns shared by the employees from the same team or division. Learning about these motivation factors can help in establishing a strong base for an efficient employee rewards program. It might be impossible for companies to individually interview every employee to learn about what motivates them. The challenge can be overcome by asking employees to fill a quick survey form having open questions for gaining elaborate details.

Set meaningful Rewards Criteria

A successful rewards program is one that is based on meaningful criteria rather than favouritism or arbitrary picking. Employee recognition should be considered as something special that can be achieved through hard work and commitment. It should not be perceived as something like an entitlement for employees who have good relationships with their managers or team leaders. Most importantly, every employee should have an equal fighting chance to be part of the program, irrespective of their level and role within the organization. This can be ensured only by clearly defining the criteria that employees would need to fulfill to be considered for the reward.

Form a review committee

Irrespective of the size of an organization, forming a committee to oversee the employee recognition program is highly advisable. The committee may consist of just a few senior and mid-level managers, to begin with. The size of the committee can be increased at a later stage if the companies feel the need for the same. The most important thing to ensure is that the members of the committee should be known for their honest and unbiased decision-making capabilities. It is also essential for companies to promote the concept that serving on the committee as a matter of privilege and pride. This in itself can prove to be a reward for the employees who get the opportunity to take up the role.

Involve Team Leaders and Line Managers

When it comes to assessing the overall performance, contribution and achievement of employees, the feedback of their team leaders matter the most. Hence it is essential for an organization to ensure the involvement of the team leaders in any rewards program to make it truly efficient and successful. Most organizations commit the common mistake of seeking advice and feedback only from the HR, while completely ignoring the opinion of team leaders. This diminishes the credibility of the rewards program as most employees feel more satisfied if they are rewarded by the people they work with on a day-to-day basis. 

Know the characteristics of a good Rewards Program

This is perhaps one of the greatest requirements for setting up a good rewards program. The most important characteristics of a good recognition program are listed below.

·        It should be timely; as any delay in rewarding and recognizing employee, efforts diminishes its value.

·        It should follow a regular frequency as it ensures enhanced employee engagement, lower turnover, and better business results.

·        It should be specific, which means that it should aim to acknowledge some particular achievement or contribution of employees.

·        It should have some tangible value so that the employees continue to feel motivated long after receiving the reward.

·        It should be value-based so that employees feel motivated to work towards a common objective.

Make the Program multifaceted and diverse

Maintaining variety in the rewards and recognition program keeps the concept fresh and exciting for long. Employees tend to feel a sense of curiosity about the rewards that they will be given and this enhances the general enthusiasm for the program. However, care should be taken that the diversity is not achieved at the cost of hurting the sensitivities of other members of the workforce as it can render the whole process ineffective and even make the employees feel demotivated.

Developing an effective employee recognition system is not as difficult as it may seem, especially if organizations were to follow the above-discussed tips to enhance the feasibility, reliability, and cost-effectiveness of the program.

 

How to Reward and Recognize Customer Service Employees?

How to Reward and Recognize Customer Service Employees?

Great customer experience is one of the key requirements for ensuring the success and growth of any business organization. In fact, it is not uncommon for individuals to shift their loyalties to an organization promising to offer better customer experience.   In order to create such an experience, it is important for companies to train and prepare their employees to be customer-centric. However, such training and preparation form only one aspect of ensuring customer satisfaction and happiness. A customer service organization be it a call center,  front-office or delivery function also needs to focus on enhancing the happiness and satisfaction level of its own employees to get the best results. Companies can no longer undermine the fact that the success of their business depends on an ongoing stream of happy customers, which in turn is determined by the happiness level of the employees.

How Employee Happiness Influences Customer Experience

A customer-centric approach does not just focus on efficient communication with customers through a call center or front office but is more about ensuring better brand experience and establishing long term relationships with them. In a customer service environment, the employees handle the responsibility of fostering such experiences and relationships. By empowering the employees and enhancing their engagement and satisfaction levels, companies can ensure a significant improvement in these experiences and relationships. It has been observed that happy employees tend to be self-motivated and work towards delivering better customer experiences. Their commitment and sense of loyalty towards the organizations is significantly enhanced and this is reflected through an increase in their efficiency.

Using Rewards and Recognition to reinforce Customer-Centricity

Just being aware of the critical role played by employees in delivering great customer experience is not enough for a business organization. Rather they need to take the necessary steps to reinforce customer-centric behavior by creating a customer-focused culture. The most important step to be taken in this direction is to integrate employee rewards into the company culture. At the same time, they need to avoid the common pitfalls that can render the reward and recognition program simply useless. In order to ensure the same, the business organization needs to ensure the following.

Focus on the Employee Behaviors that provide Desired Impact

While deciding about the most appropriate rewards and recognition options for employees, business organizations need to focus on identifying and promoting employee behaviors that ensure an enhanced customer experience. For this, they need to first determine the things that really matter to the customers through a thorough analysis of customer data, their preferences, and reviews. The information thus obtained can be then co-ordinated with the various behavioral attributes of employees to learn about the ones that provide the desired results. Having identified the most effective behavior that drives customer satisfaction, the organization should take the necessary steps towards employee motivation to promote this behavior.

Integrate Reward Systems with Customer Experience

Proper alignment of the reward system with employee incentives with respect to the customer experience they create, is essential to create a customer-centric culture. This might require slight modification in the criteria used for deciding formal rewards such as salaries, bonuses, and promotions. The awareness of the fact that being customer-centric can prove beneficial not only in terms of gaining recognition and appreciation but also for ensuring career growth can act as a great motivator. In addition, it also helps in maintaining the credibility of the reward system by ensuring that only the most deserving employees receive them.

Set up Informal Rewards to Encourage Customer Focus

Employee recognition holds greater value than monetary benefits for a large percentage of professionals working in a customer service environment.  Thus by setting up informal rewards, that can remind the employees of their achievements and glory – it tend to prove more effective than just cash rewards. The simple act of posting an image of the top-performing employees for a specific period in the workplace where it is easily visible to other employees and customers can boost the morale and efficiency of the employees quite significantly. In turn, it can create a sense of pride amongst the customers who might have interacted with these employees and strengthen their bond with the company.

Focus on ensuring Better Work-Life Balance

At the end of the day, all employees are individuals with a life outside their profession, which they cannot ignore. No amount of rewards and recognition can replace the happiness that employees gain by spending time with their family and friends. Thus by providing opportunities for a better work-life balance for their employees, companies can enhance their happiness quotient. Happy employees tend to be more attentive and sympathetic towards their customer needs and are more likely to make every effort to ensure their satisfaction and happiness.

A customer service environment can prove to be extremely stressful and exhausting for employees as it requires them to deal with people of diverse natures, opinions and patience levels. The challenge of keeping the employees working in such environments motivated and engaged can only be overcome with an effective reward and recognition program.

Low Budget Employee Recognition and Reward Ideas to Enhance Employee Motivation

Low Budget Employee Recognition and Reward Ideas to Enhance Employee Motivation

Seeking recognition and appreciation for their work is basic human nature and nowhere is this behavioral trait more evident than in professional work environments. In fact, employee recognition and rewards have emerged as the key aspects for creating a highly engaged workforce committed towards business growth. The process is aimed at acknowledging the efforts, hard work and workplace behavior of employees that contribute towards the success of an organization and fulfillment of its objectives.

However, most small and medium business organizations and even larger enterprises tend to feel concerned about the costs involved in implementing a proper employee recognition and rewards program. What such organizations fail to understand is that it is the intent of recognizing and rewarding the employees that matters the most, rather than the money they spend for the same. Business organizations can plan for a recognition system that suits the needs of their employees as well as their budget more efficiently.

Planning a Suitable Rewards and Recognition Program

The most important thing that business organizations need to understand is that the rewards being handed out to employees neither need to be expensive nor in the form of cash. In fact, most employees feel satisfied by the fact that their seniors are aware of their efforts and willing to acknowledge the same. However, employers need to make sure that any non-cash rewards that are chosen should keep the interests of the employees in mind. It has been observed that such rewards are more effective in enhancing employee motivation rather than cash rewards. Discussed below are a few low budget employee recognition and reward ideas that can help enhance employee motivation and engagement levels considerably.

Public Recognition

Acknowledging and appreciating the efforts and hard work of the deserving employees publicly is the most common and cost-effective method. Such public recognition can be made in front of the team members of the selected employee or the entire workforce at an organization level event. In either case, the employees tend to feel a sense of pride and achievement, which motivates them to further improve their performance. Such recognition should ideally include a certificate of merit and a small medallion or trophy which can serve as a constant reminder for the employee.

Workplace Benefits

Another cost-effective way of rewarding the employees is to offer them some desirable benefits at the workplace for a specific time period. The benefits can be extended permanently, in case of repeat achievers, which will also prove inspiring for other employees. These benefits may include flexible work timings, free pickup, and drop facilities for a specific time, upgraded workstation or even paid training for skill enhancement. Such rewards tend to enhance the motivation level of the entire team as the members are able to see the benefits gained by one of their own thanks to their diligent and sincere efforts.

Paid Outing with Family

A majority of employees today struggle hard to create a perfect balance between their work and family life. In addition, the cost of enjoying an outing with a family is often very high, which is why an average employee tends to do it less frequently. Hence, being rewarded with an opportunity to spend quality time with their family without having to worry about the expenses for the same, is something that most employees will find appealing. The venue and type of outing can be decided on the basis of the level of the employee receiving the reward.

Time Off from Work

The highly competitive work environments today often make it impossible for employees to take time off from work. This can lead to their physical and mental exhaustion and can even cause a reduction in their efficiency. One way to avoid this problem and integrating it with employee recognition is to give the employees time off from work. The employees can choose between coming to the office and doing nothing or staying at home to indulge in an activity that helps them to unwind and relax. A couple of days off from work will ensure that the employees feel truly acknowledged for their efforts. It also helps them feel wanted and cared for by their employers and thus helps them develop a stronger bond with the organization.

Formal Meal with Top Management

The idea of enjoying a formal dinner with members of the top management is also a great way of acknowledging and rewarding the employees in a budget-friendly manner. Most junior level employees are in awe of these top-level professionals and sharing a meal with them as a reward for their efforts and hard work often proves to be quite motivating. Moreover, this method of recognition and appreciation also provides the top management to interact with the high performing employees and assess their suitability for enhanced positions within the organization in the future.

All the above options (and many others we can think of) make it possible for business organizations to maintain a relatively low rewards budget without losing out on the benefits of employee recognition and appreciation.

HiFives Team

The Magic of Employee Recognition

Recognition is an ancient tradition in all communities, dating thousands of years. Recognition at the workplace too goes back in history. Typically top driven, it represents the appreciation of performance or achievement of an individual or a group of individuals, generally by a designated leader within the organization. Employee recognition may or may not come with monetary benefits but more often than not, it comes with high visibility within the organization.

Employee recognition has come a long way and has evolved into a more structured form of appreciation within the organization; not just restricted to leaders or managers but any employee in the organization could recognize anyone. Such peer-to-peer recognition, though a noble thought has been subject to a lot of pessimism from the management as to whether it is indeed genuine or not. Several organizations have downgraded the value of peer-to-peer recognition to well below manager recognition due to this reason.

Whatever the mechanism of employee recognition, we believe it should be timely and well thought through. It has a multiplying impact on employee motivation if done in the right way. Hence, systems and processes need to be implemented to ensure that the impact of it is fully realized by the organization. That is when the magic of employee recognition will touch the work lives of all employees and create a great work culture.

An employee recognition system should take care of the following:

  1. Enable a manager (or peer) to recognize an individual or group in a few easy steps
  2. Checks and balances to minimize bias, duplication and errors to the extent possible
  3. Financial or other authorization based on the organization structure and policies
  4. Communication to the immediate group and the broader organization easily and quickly
  5. Reporting and tracking of the key metrics

Key metrics would include coverage ratios at various levels. Usually, organizations would set a target coverage ratio for themselves. Though setting a target puts more focus into the whole process but it might also make recognition for the sake of recognition which devalues the entire concept. Hence, our recommendation would be to set a target range for employee recognition, purposely keeping it on the lower side to preserve the novelty and the value of it rather than making it an entitlement.

All this is just the science of employee recognition, driven by systems, processes and hard numbers. However, the art of employee recognition goes much beyond that – what is said and written; the honesty with which the communication is done and the timeliness of it; all matters. Systems and processes can only facilitate but it is up to the individual manager or employee to create that magic!

According to us, employee recognition is both an art and a science that helps build a culture of appreciation within the organization. This will ensure that employees think and act beyond their goal sheets and appraisals and create a positive atmosphere within the organization. Ends are always going to be important but means too are important. Hence, what is required is the magic of employee recognition that should permeate through the entire organization between one appraisal cycle and the other.

HiFives Team

 

 

 

How important is continuous communication towards the success of an Employee Rewards and Recognition Program?

 Employee rewards and recognition programs are typically launched with a great deal of fanfare within the organisation. There is usually a prelaunch communication, a launch communication and post-launch follow-up communication by the HR and the leadership team. The communication generally harps on the importance of creating a culture of appreciation and recognition within the organization. It attempts to build up excitement among the employees most often by linking it to monetary benefits.

However, as one might expect the enthusiasm dies down over time and the communication becomes a trickle. It is business as usual for everyone as they go about doing their regular work. Line managers don’t feel motivated to recognize employees as much, as employee themselves lose interest and there is hardly any push from the HR and the leadership. This is the usual story of a typical employee rewards and recognition program that had been launched with a great deal of enthusiasm.

All said and done, it is challenging to make any employee facing initiative a part of the organization culture like a habit for all employees. We, at HiFives, feel that constant communication is the key to the success of employee rewards and recognition program. Being an HR-driven initiative the primary responsibility lies with the HR and the leadership team. The communication should focus on ingraining recognition as a key organizational value among employees. There are several ways to achieve that:

  1. Visual communication: LED displays, posters, standees, tent cards, etc. highlighting the employee rewards and recognition program across the offices – workspaces, lobby, pantry, canteen, etc.
  2. Email communication: Regular newsletters – weekly or monthly; announcing the winners of the previous period and any updates on the program.
  3. Verbal communication: By Leaders, HR and Manager at all forums such as regular team meetings, town halls, etc.

Whatever the modus operandi, the key element is the continuity of the communication to keep emphasising the importance of the culture of appreciation and recognition. The communication should be top-down well as bottom-up to get feedback and insights on how the program is working on the ground.

HiFives Team

 

 

 

Rewarding under performers for one-off achievements – does it make sense?

This is one dilemma that many line managers and HR Partners face ; whether to reward an under performer for a significant achievement, as part of the employee rewards and recognition program. In most cases, the Rewards and Recognition Policies might not state anything explicitly, leaving it to the better judgement of the concerned managers.

An important point to note here is that consistent under performers might rarely be around in the system since the performance assessment process would take care of that. Hence, under performance might be a temporary phase or it could be just relative. And more than other employees, these employees need more motivation.

Managers often tend to use all available resources to motivate their employees. This might result in managers tending to ignore the under performers and focusing on the top performers when it comes to rewards and recognition. Hence a truly deserving employee might miss out on a spot award for a significant achievement, due to his or her overall performance history.

Not only is this unfair, but counterproductive as well. The manager might be missing out on an important opportunity to motivate an under performer and putting him or her back on track. Whereas a top performer, who might not truly deserve the award, might actually get it and this might cause any significant change in their motivation levels.

Hence it is our recommendation that awards especially those in the category of spot awards should be given based on the immediate achievements and not the overall track record of the employees. Awards should be treated as awards and not as proxies for the performance assessment process!

HiFives Employee Rewards and Recognition

What’s the best form of employee rewards?

Employee rewards in modern day organizations has been evolving over the years – it has become more of an art than a science. Gone are those days where employees were happy receiving trophies and consumer durables.

Organizations have tried everything from trophies, company branded merchandize, durables, electronics, holiday packages, gift vouchers and even cash.  Many organizations have used training programs and conferences to motivate their high performing employees. A few of these methods have worked, most of them haven’t. What does it mean for organizations? Should they stop experimenting and continue with what they are doing? What is the best method of rewarding employees?

As you might have guessed by now, that there is no single right answer to this question! The answer is ‘it depends’. It depends on a whole host of factors ranging from the industry type to employee seniority level right down to individual employee preferences. Given the complexity of the situation, organizations are faced with the daunting task of choosing the type of reward to give their employees.

However, a couple of options seem to make sense more than others. Rather than deciding on what the employees would want, it would seem better to leave the choice to the employees themselves. Given this, cash, digital currency or popular gift vouchers would make the cut. Employees could use these rewards to purchase that they would want to rather than being locked down to the choices of the HR/ management team. These work out far better than the traditional company branded merchandize or consumer durables.

How do intangible rewards work out? It’s definitely a good idea given the overuse of the other kinds of rewards. Coffee with the CEO, Dinner with the Director, Conferences and Training programs are few of the ideas that be utilized by organizations that do not prefer monetary rewards.  In fact, we believe these types of rewards could actually get into mainstream going forward. Coupled the social recognition from colleagues, employees would find these rewards more meaningful than others.

HiFives Employee Rewards and Recognition

How important is recognition for employee engagement?

To answer this question, let’s pose another question! What is employee engagement in the first place?

Very broadly, employee engagement is the art and science of making employees feel good – about themselves, about the organization, about working in the organization and about working with each other. This ‘feel good factor’ can be achieved through tangible and intangible means.

In today’s day and age, social recognition plays an important role in what makes us feel good. People are thirsting for likes and comments on social media like Facebook, Instagram, etc. In a similar way, employees value social recognition of their achievements at the workplace. For confidentiality and data privacy reasons, the reach of these recognition platforms might be restricted to within the four walls of the organization.

Monetary rewards can play can be an additional factor on top of the social recognition.  Even non-monetary benefits like conferences, training programs and direct interactions with the top brass might do equally well if not better!  All adds up to the ‘feel good factor’ of employee engagement.

The most critical aspect of recognition is spontaneity, appreciation as something good happens. Could be a casual pat on the back or a round of applause at team meeting – it all makes a difference, provided it’s timely. Obviously, the quantum or the perceived value of the awards needs to be calibrated with the level of achievement for it to make sense.

All said and done, recognition plays an integral part of employee engagement not matter how it is executed. At the end of day, happy employee is what matters most whether is a pat on the back, a trophy, a shopping voucher or a trip to the Bahamas!

HiFives Employee Rewards and Recognition

Can Rewards and Recognition drive a culture change in the organization?

The short and sweet answer to this question is an absolute yes! Provided the desired behaviors that should be a part of the organizational culture are mapped correctly and rewards and recognition is used to reinforce them.

Let’s take an example – as an organization if you want to create a culture of honesty and hard work, you might want to formally recognize employees who had the option of not being fully honest in the course of their work by taking the easy way out but decided to stay on the right path even if that meant putting in a lot more effort and maybe even a slight delay in achieving their goals.

Another example could be of an organization which wants to discourage employees from staying in office till late either because they are inefficient or they want to impress their superiors. If the organization recognizes employees who are genuinely efficient – they complete their work on time and leave office on time consistently. While it might be hard to rank and stack employees based on their efficiency, there could be a self-nomination process and the claims of the nominees could be easily validated based on feedback from their managers and the attendance system data.

In fact, our view is that rewards and recognition can play a pivotal role in initiating a change in the organization culture.  It is really basic human nature to gravitate towards behaviors than give them the maximum benefits.  Organizations should include behavior or value based recognition in their employee programs in addition to the general outcome based recognition – that’s our recommendation.

HiFives Employee Rewards and Recognition