You and your HR consultants will need to spend a deal of time and effort when designing Rewards and Recognition Policy for your company. The closer you customize the strategy for your business; the better will be the results. One can think of six points, which help you to develop the structure easily.
Mix Rewards and Recognitions:
The distinction between “reward” and “recognition” is highly critical when building the motivational strategies.
Reward motivates behavior to meet standards. In business context, you may announce rewards to individuals who achieve production or sales targets. It is easy to see that reward can deliver important but limited results. It will just boost performance when conditions are favorable.
Recognition seeks to motivate initiative, commitment, inventive effort and similar behaviors that add unique value and deliver significant contribution to the organization. Recognition has the potential to trigger transformative performance and deliver performance even when conditions are not so favorable. Please see “Rewards and Recognition in Employee Motivation” by Hansen, Smith and Hansen (2002) for a fuller discussion on the topic.
Our experience as one of the best HR Consultancies in Dubai is that, there is a business case for a mix of reward and recognition strategies to enhance engagement.
Do make sure that all the employees are aware of the performance reward system. The monthly meeting is a good forum to inform people their individual score. The method sharpens the competitive spirit gradually and improves performance.
Plan a mix of small and big rewards and spread them throughout the year. Rewards given out in quarterly and annual doses will look more attractive and keep the people aware of the opportunities. It will encourage people who did not make the cut in one cycle to make effort in the next cycle.
Reward Team Performance:
In addition to rewarding individual contribution, make sure to have rewards for team performance. It helps to build team spirit, a valuable long-term asset and you may also see dramatic increase in productivity.
Lastly, it is important to modify the Reward and Recognition policy at least once a year and align it with your goals for the coming year. Reach out to us if you wish to have further information.