REWARD AND RECOGNITION PROGRAM FOR EMPLOYEES

Nov 2, 2021 | 0 comments

Nov 2, 2021 | Essays | 0 comments

REWARD AND RECOGNITION PROGRAM FOR EMPLOYEES Introduction
Employee recognition has two aspects: the first is that it is timely as well as it is hinged on successful accomplishment of certain behavior. According to Lawler and Worley (2006) employee recognition and rewards are the foremost concern for all human beings, quickly followed by proper management. The firm has faced an increase in employee turnover as well as lowered commitment to the workplace goals. Whereas employees may not be able to bring their home to work, they often carry the feelings, frustrations and daily challenges that they encounter at home. It is important to ensure that whereas dealing with the challenges maybe difficult, employees take home mostly positive feelings about their own work. It is important to note that the firm offers a highly competitive payment and compensation package to its employees. However, low recognition and lack of a formal structure for rewards has led to increased frustration among the employees. Coupled with this employees are unable appreciate their managers and leaders within the organization. This has made it difficult for managers to implement specific projects and establish high performance teams. Project plan 1. Establish criteria
It is important to note that it is not that the company completely lacks a recognition system. It is not uncommon for employees to receive praise from their managers for good effort and work completed. What lacks however is actual formal structure to reward ad recognize high performance. Armstrong and Stephens (2005) point out that employees need to know the basis for recognition and reward. There must be a criteria with which merit is not only established but also recognized. Failure of a proper system means that rewards and recognition are haphazard and mostly biased. While this could encourage and build up the morale of a few employees, it is most likely to lead to increased demoralization of the entire team. The first step of this project is to identify measurable behavior with the caution that complete focus on measurement may lead to a criteria that does not merit key changes and behavioral structures. However, measurement provides the most ideal foundation for building a merit system which is clear and recognizable to both the employees and the management.
The criteria should also describe who is eligible for recognition or recovering the rewards. According to Güngör (2011), all employees who work with the company and who are undertaking similar tasks that require the same measurement and performance behavior should be eligible for rewards. The most discomforting aspect of any form of reward structure is the presence of ambiguity and biasness which often demoralize even the most hardworking employees. It is better to have no reward system than to establish a system which is neither formal nor structured opening opportunity for biasness, favoritism and ambiguous rewards. The following steps will be taken into consideration when identifying and setting up the criteria system:
· The project will form a committee made up of representatives of employees from all levels and departments. The main aim of the committee will be to provide advice to management about the possible reward system effects. The committee will also be given the responsibility of championing the reward system to fellow employees. This is likely to generate more excitement and support for the system.
· Evaluation of the company goals and mission. According to Hsieh and Chen (2011) reward systems that are not built on the company mission are likely to draw the employee’s attention from company goals. The process should not define new company goals or encourage activities that though beneficial to the company tend to draw attention of the employees away from the main company goals.
· Designing a criteria that allows everyone to win and be rewarded is vital for a successful reward system. Employees of all ranks, with different tasks and working in different departments should all have opportunities to be rewarded either as teams or individuals. However, for this project the reward system will focus more rewarding positive behavior in individuals. It is expected that this will in turn translate to positive behavior in teams as well as departments. 2. Establish a method of recognition
In the past, the company has been quick to focus on monetary compensation whenever looking to recognize high performing employees. While for the short term, this is an ideal reward system for the long term it is not only costly, it also lacks sustainability. The goal of this project is to encourage behavioral change that would in turn lead to high productivity and performance among the employees. Monetary compensation ahs often led employees to focus on the money rather than celebrating and making personal changes to improve performance. For example, the sales staffs have become overly focused on simply increasing sales due to the establishment of a commission system which rewards each sale that they make. However, the company continues to score very low on the service orientation and customer care department. This, in itself means that future sales will be more difficult. There are new forms of reward and recognition, which are proposed by this project. Top among them being, offering employees a selection of projects that they would like to participate in the company. This not only recognizes their efforts but also makes use of their unique skills as well as providing a unique opportunity for career growth. It allows employees to continually challenge themselves which means they do not become bored with the same routine. Other possible avenues include, lunch with the management team as well as providing a flexible schedule for the employees in the short term, allowing them both rest and rejuvenation in time for participating in their next challenge. Further, this project will focus more on individual rather than team recognition. The recognition that employees receive should not only be equal to the task that has been given to them; it is also important to ensure that the task is equal to the qualifications and ability of the employees. Winning in the reward system as suggested by Allen and Killman (2001) should not be so easy that all employees are able to win thus minimizing the quality of the reward system. In addition, it should not be as difficult so that no one is able to win, a striking balance should be established. 3. Communication and training on the reward system.
Most reward systems often fail because on the one hand, employees are not aware of the need and the nature of the reward system. When the employees are lacking in awareness, it is often common to imagine that such rewards are far from structured and thus haphazard even where there is a formal system of recognition. The first aspect of this project will focus on involving the employees in setting up the reward system. This will include:
· Identifying behaviors that should be rewarded and given merit thus measurement of such behaviors will not seem constricting since they have been identified by the same employees.
· Identifying the most desired type of recognition and reward. Employees can provide their most desired reward system.
· Selecting the individuals who have met the criteria and are therefore deserving of the reward and recognition. It is important to ensure that the final selection of the individuals should not be left to managers as they may be seen as emotional and biased.
The second aspect of this step in the project will deal with the challenge that managers have in applying the reward and recognition structure. Management will undergo formal training on the same, in order to understand not just the nature of the reward system but also the need for the reward system so that they are more encouraged and confident in the application of the reward system. The idea is to give the managers open knowledge that is not just theoretical but rather practical, allowing them to address the challenges that come with applying and bringing to life the nature of the reward system. Managers according to Shields *et al. *(2015) tend to shy away from reward and recognition structures simply because they lack the confidence that comes with possessing the right knowledge to apply the formal structures. They are therefore more comfortable with the informal structures which themselves are fraught with challenges and biasness. Qualifications
I have three years experience working in human resource. Although, I have not been manager before through my internship as well as early working experience as a human resource assistant in two large companies, I have come to understand the value of both motivation and commitment in the workplace. The companies have offered me the chance to work practically and apply my theoretical knowledge in human resource. However, the same companies have offered me an open learning experience, where I have to understand some of the challenges that are encountered when the companies are attempting to build a committed team and human resource.
My educational background has also provided me with an ample opportunity to understand the fundamentals of human resource principles. In specific I have excellent knowledge on work planning, compensation packages and reward structures. With this experience and knowledge, I believe that I am ideally qualified to spearhead the company project and bring together company resources to meet the goals of the project. With my successful background, I am able to leverage presentation and communication abilities to find the right solution to this specific company, tailor making a reward and recognition system that will encourage sustainable high performance and provide the company with a unique competitive edge.
Estimated budget
*Place budget here*
* Cost per unit ($)*
* Units *
* Total *
Cost of planning (setting up structures)
N/A
Training for managers
120
10
1200
Communication to employees
30
100
3000
Investment in management lunch
100
5*12 (every month cost)
6000
Recognition of individuals
50
12
600
% commission for high performers annually
500
10
5000
* Total costs *
* 15,800*
Conclusion
A reward system will help to keep employees loyal to the company, and determine to climb the corporate ladder. Reward systems do not need to be expensive. This project will lay foundation of rewards by enhancing the importance of word of mouth praise and recognition by managers. However, such recognition will be based on a proper formal system. Further, each form of reward whether words of praise or otherwise will be closely followed by a properly times official letter of recognition.
References
Allen, R. S., & Kilmann, R. H. (2001). The role of the reward system for a total quality management based strategy. *Journal of Organizational Change Management*, *14*(2), 110-131.
Armstrong, M., & Stephens, T. (2005). *A handbook of employee reward management and practice*. Kogan Page Publishers.
Güngör, P. (2011). The relationship between reward management system and employee performance with the mediating role of motivation: A quantitative study on global banks. *Procedia-Social and Behavioral Sciences*, *24*, 1510-1520.
Hsieh, Y. H., & Chen, H. M. (2011). Strategic fit among business competitive strategy, human resource strategy, and reward system. *Academy of Strategic Management Journal*, *10*(2), 11.
Lawler, E., & Worley, C. G. (2006). Winning support for organizational change: Designing employee reward systems that keep on working. *Ivey Business Journal*, *70*(4), 1-5.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., … & Plimmer, G. (2015). *Managing employee performance & reward: Concepts, practices, strategies*. Cambridge University Press.