What is Employee Recognition and

Reward Policy?
Employee Recognition and Reward policy is an official statement on
behalf of the company that says that employees/teams who deliver
exceptional performance and contribute to the company’s well-
being. The policy entails that such employees must be recognized in
a proper form, which is inspirational to them and their colleagues. It
will develop a lively competition among the employees that will
indirectly benefit the company’s status. The policy outlines that
company must not promote any favoritism as it will only lessen their
dignity amongst the employees. On the contrary, well-defined
appraisal programs will promote a healthy culture for the company
to attract more candidates.

The policy develops best practices to set the high-performance

standard every time an employee is rewarded for some category. As
the employees will be motivated to achieve high targets, the
company’s market value will improve and increase. Grow a positive
and enthusiastic working environment for your company with our
Employee Reward and Recognition policy template.

Download Employee Recognition and Reward Policy Template

In this policy, you will get:

 The definition and purpose of designing rewards and recognition policy.
 The scope of the policy to which it applies.
 Sample formulated policy to help you develop for your company.
 Examples of Employee Appreciation ideas you can use to your company.
 Guidelines that enable employees to understand the procedure.
  A well-designed procedure that does not promote favoritism.
 Sample method to collect nominations under the policy statements.
 To form a unit which notices the work of every employee and delivers rewards to the
worthy one.
 To improve the company culture by adopting such policies for your company.

Employee Recognition and Reward Policy

Template Sample
‘Name of the Company’ believes that every employee who has an excellent
performance must be encouraged and appreciated in an equal and helpful
manner. The rewards, company passes on to the employee may be anything but
creative, unique, or useful. The responsible team will choose when and for what
reason to appreciate employees with rewards.
Under this policy, every employee who has performed excellently for
the (time) with a defined proof of the same will be rewarded in any way that
the ‘Name of the Company’ feels suitable and worthy.

Purpose

The purpose of rewarding employees is to stimulate and trigger a spark in

employees to perform greater and greater every time. The regular recognition
of employees without any alteration will help encourage team efforts, increase
organizational value, promote a better culture, and improve peers’ behaviors.

Scope

The Scope of this policy expands to every employee who is on a full-time

employment basis with the company.
Guidelines
1. An employee should be rewarded for significant efforts made towards the company’s
profitability in any possible way.
2. Rewards should be meaningful, unique, and creative to the employees.
3. The reward must promote the culture and working environment of the company.
4. Rewards should not be any adjustments to the company’s salary or other monetary funds
to the employee.

Employee Recognition and Rewards Alteration

‘Name of the Company’ believes that every employee is equal to them, and
every employee must be gifted equally without favoritism. The company will not
allow and tolerate any kind of bias for employees.

The company will strive to take action against the individual/team who
promotes favoritism and guarantees employees to maintain equality.

Types of Rewards
‘Name of the Company’ supports the reward category within the listed
performance requirements as follows:
 More than (years) served for the company

 Excellent usage of skillset

 Increased customer success
 Perfect attendance for a month
 Achieving the assigned target before the specified time interval
 Excellent research for an undertaken topic

Reward Guidelines
The rewards and recognitions distributed by the ‘Name of the Company’ are
categorized according to the following chart:

Approval Frequency per

Reward Value Taxability
Needed person/team

Non-monetary
Manager No frequency NA
reward
 Up to ₹100 Manager One per year Yes

From ₹100 to
HOD One per year Yes
₹1000

₹1000 and
HOD One per year Yes
onwards
 These rewards do not apply to customary-work expenses like travel, attendance,
conferences, and professional organization memberships.
 Before distributing the Monetary rewards, the authorized unit must consult with the
Heads and the Human Resource department.

Reward Application Procedure

‘Name of the Company’ encourages distributing the rewards through a fair
means, and practices are made to collect nominations from every employee of
the staff to maintain equity and quality.

The unit specially formed to look after the employee engagement will take care
that awards are delivered fairly and transparently. They will collect the
nominations throughout the year, analyze them, and distribute them regardless
of favoritism.

Rewards Collection Method

To ensure a transparent reward system in the company, ‘Name of the
Company’ promotes blind voting. The methodology will be carried out as
follows:
1. The votes from the employees will be collected without their names.
2. The voter must be able to explain why he/she choose the respective person into this.
3. The unit formed will collate the votes and will analyze it.
4. The reward winner will be announced on the date of delivery.

Employee Appreciation Programs

‘Name of the Company’ defines various programs other than just monetary
and Non-monetary rewards for recognitions of its outstanding employees.
Special Employee Appreciation Day is celebrated which expresses our trust
towards their roles and efforts they have put to make the company stand on a
higher platform.

Some of the examples of other Employee Appreciation Programs include:

 Team Lunch

 Endorsements and recommendations

 Time-off or Day-off
 Business suggestions
 Training and career-based rewards
 Gift of health and many more…

At ‘Name of the Company’ we believe that recognition is not limited to

monetary rewards, we happily appreciate our employee through innovative and
unique ways which are different based on the achievements