An employee reward system is a programme created by an organisation to reward performance and motivate employees, either at an individual or a team-based level.
Typically, these systems are not linked to salary, but they form an essential part of the company’s employee value proposition or EVP. Increasingly employees expect to work for organisations that not only recognise but reward exceptional contributions to the business.
Reward programmes can be set up for many reasons, including increasing employee engagement, making the organisation more competitive when recruiting talent, boosting sales figures, or developing a particular company culture.
If you want to gain the benefits of a rewards program but are not sure where to start, here are five tips to help you get it right:
1. Clarify Your Vision
The most fundamental step is to spend as much time and energy as you need to decide what you are trying to achieve in setting up your programme and how much you are prepared to invest. You need to be clear on your expectations as well as your intended result.
Building a programme that will meet your needs is more straightforward if your goals are clear, and clarity makes it easier for you to budget appropriately and benchmark with other organisations that have already implemented successful programmes.
2. Establish A Governance Structure
A well-thought-out governance structure will help you implement and manage the programme long-term and take care of issues such as ensuring fairness, equality of access, and efficiency. Other critical functions for a governance team are the responsibility for communicating and publicising the programme internally and measuring effectiveness.
While building a team, choose people who:
- Understand and believe in what you are doing;
- Are committed to improving performance in the organisation;
- Can act as role models
3. Define The Parameters
It is essential that the way the programme will operate is transparent and based on sound management practice and your desired company culture.
The parameters you define should include the focus of recognition and rewards, timeliness, frequency of the process and linkage to company values.
Everyone should be clear about what types of behaviours will be rewarded, how they will be rewarded, and who will be involved in the process,
4. Ensure Successful Implementation
To successfully implement your programme, you must get the active buy-in of management and employees. Success will be primarily based on trust, and the level of importance and value management gives to the process.
5. Measure And Adapt
Your rewards program should have defined and measurable success criteria and must be open to review and adaptation if needed to meet new business criteria or changing requirements of the workforce.
One of the most frequently used measures is an employee satisfaction survey, but you should consider more specific measures linked to your original goals and intent.
Setting up a rewards and recognition programme can seem daunting, but following these five simple steps will remove the complexity and ensure that your programme is both efficient and effective in supporting your employees and your organisation.
Contact us at HRBluSky today to learn how we can support you in establishing and managing your employee rewards and recognition programme.