Rewards and Recognition

MOTIVATING YOUR
TEAM
REWARDS AND
RECOGNITION
SHEENA CLAIRE V. DELA PENA
ED.D. STUDENT
INTRODUCTION
• Organizational success is driven by

satisfied and motivated employees
• Satisfaction and motivation can be
enhanced through rewards and
recognition
MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

REWARDS AND RECOGNITION ED.D. STUDENT
Nature of Reward System
• Reward refers to all the monetary,
non-monetary and psychological
payments that an organization
provides for its employees in
exchange for the work they perform.
• Reward management is a core facet
of the employment relationship
Nature of Reward System
• Reward management is concerned with the
formulation and implementation of strategies and
policies that aim to reward people fairly, equitably and
consistently in accordance with their value to the
organization.
• According to Michael Armstrong, “reward management
deals with the strategies, policies and processes
required to ensure that the contribution of the people
to the organization is recognized by both financial and
non-financial means.”
Aims of Reward
• Consideration of value
• Fulfil common goals
• Focus on behavior and outcomes
• Attract and retain quality employees
• Motivate employees
• High performance culture
Types of Rewards
• Extrinsic reward
- are direct/ indirect financial and non-financial reward
that are external to the job and come from outside
source mainly management.
- It is related with job context.
- Extrinsic reward focuses on optimum use of human
resource, maximize productivity and achieve
predetermined objective.

Types of Rewards
• Intrinsic reward
- Intrinsic reward are the personal satisfaction of
employees derived directly from their jobs.
- It is related with job content.
- Intrinsic reward focuses on job satisfaction high level
of motivation of employees.

Extrinsic Rewards
• Compensation-refers to those financial returns (in cash or
shares) that employees receive directly from their employers as
part of their contractual relationship.
 Fixed Pay(also referred to as based pay or salary)- is the cash
compensation that an employer pays in return for the work
performed by an employee.
 Variable Pay (also known as pay at risk) is a payment in cash or
equity contingent on individual, group or organizational
performance assessed objectively or by discretion

Two Type of Variable Pay Elements
• Incentives are based on predetermined performance
goals and must be re-earned each performance period.
 Short-term
 Long-term
• Bonuses are one-off payments that are also subject to
individual, group or organizational performance, but
they are given after-the-fact, after performance has
been assessed.

Extrinsic Rewards
• Benefits- are non-cash or services that
employees receive in exchange from their
employment relationship (some benefits are
provided indirectly by the employer through
service providers such as insurance companies).

Benefits can be categorized into:
• Income protection -are meant to protect employees
from the financial risks inherent in their lives.
• Part Time-Off (PTO) -reward employees with time rather
than money
• Well-being-are programs that promote employees’
physical, mental and social health.
• Work-life- aim to help employees to better balance their
time and commitments at work with their family and
community responsibilities.

Categories of work-life
• Workplace flexibility plans (also known as alternative work arrangements)
comprise a variety of flexible work that enable employees to have more
control over where, when and how their work is done.
• Special leave refers to personal time away from work to spend with family,
friends or self.
• Community involvement practices allow employees to spend some of
their working time as volunteers for community causes.
• Caring for dependents refers to those programs offered by the
organization to support the employees parenting and elder care

Extrinsic Rewards
• Workplace Environment and Working
Conditions
The key purpose of this reward mechanism is to
provide a safe and comfortable environment for
employees. Normally, this element of the reward
package refers to the physical setting in which
employees work

Extrinsic Rewards
• Recognition
Recognition reward programs provide a
formal acknowledgment or give particular
attention in the form of cash or non-cash
awards to employees for their special
behaviors, performance contributions or
length of service.

Extrinsic Rewards
• Learning and Development
Organizations also offer their employees
learning and development opportunities.
The purpose of this form of reward is to
support employees’ sense of
competence, self-efficacy and
achievement as well as encourage their
motivation.

Extrinsic Rewards
• Promotions
It refers to the advancement of an
employee from one rank or position to the
next one in the hierarchy system.
• Leadership is the process whereby an
individual influences the behavior of a
group of individuals towards common
goals, can also be interpreted as a form
of reward
Intrinsic Rewards
• Sense of meaningfulness -the degree of
importance of the purpose an employee is
trying to fulfill and the significance of the
work he/she is performing
• Sense of choice-the positive feelings
generated when an employee has the
autonomy or discretion to choose how to
accomplish his/her work

Intrinsic Rewards
• Sense of growth- the degree to which an
employee feels that he/she can perform
his/her work skillfully, and due to his/her
competence and efforts is accomplishing
something important
• Sense of community- the positive feelings
of belongingness within a group.

Types of Rewards
• FINANCIAL REWARDS-are monetary
rewards in order to enhance employee's
financial well-being. They are tangible and
fulfill financial need of employees.
• NON-FINANCIAL REWARDS-are non
monetary incentives created to add
attraction to life on the job. They are
intangible and fulfill psychological need of
employees.

Types of Rewards
PERFORMANCE BASED REWARD- are strategy
to provide reward to employees on the basis
of their performance.
• It implies incentives in terms of piece rate
wage, commission on sales, bonus on high
production, share of profit etc.
• Performance based reward encourage
competition between employees and may
even lead to conflicting priorities
Types of Rewards
MEMBERSHIP BASED REWARD- are strategy
to provide reward to employees on the basis
of their performance. Every member of a
team is equally rewarded in terms of
incentives.
• It implies incentives such as profit sharing,
bonus, merit benefits, skills incentives and
so on.

RECOGNITION
• Employee recognition refers to the act of
acknowledging an individual or team’s
behavior, performance, effort and
accomplishment that help the
organizational goals and values.
• Recognition encourages employees to
repeat good performances.
• Recognition is a form of non-monetary
reward
RECOGNITION
• According to an online survey site,
whose statistics are updated in real time by
a large data sample coming from over 150
countries and more than 1000
organizations, 82% of employees have
upvoted praise against gifts and sadly, 63%
of them feel like they don’t get enough
praise.
https://www.businesstopia.net/human-resource/employee-recognition-meaning-
types-examples-importance.

IMPORTANCE OF RECOGNITION
1. Employees who feel praised/valued often
go on to achieve beyond expectations.
2. They are the ones with the highest level of
motivation, productivity, and morale.
3. Recognition builds loyalty in the
employees.
4. Recognition improves employee retention.

5. Employee recognition develops good
communication between employer and
employees.
6. Employee recognition strengthens the
employee-organization relationship.
7. Recognition increases engagement among
the colleagues.

8. Recognition adds humanity in the
workplace.
9. Recognition creates a way for direct
feedback for individual and teams.
10. Recognition lowers stress and frustration
and increases job satisfaction in employees.

11. Employees who feel praised and valued
believe that they have career advancement
opportunities.
12. Employees who feel valued would
recommend their organization as a good
working place to others.

RECOGNITION TYPES
Top-down recognition
In this system, employers/managers/
supervisors witness, approve and appreciate
the contributions of employees. Recognition
can be tangible like an award, gold stars, etc.
or intangible like verbal praise.

RECOGNITION TYPES
Peer-to-peer recognition
In this system, all the members of the
organization are empowered to recognize
and acknowledge the contribution of every
other member.

RECOGNITION TYPES
Peer-to-peer recognition
In this system, all the members of the
organization are empowered to recognize and
acknowledge the contribution of every other
member.
Customer-to-employee recognition
In this system, customers acknowledge the
employees for the valuable service they receive.

FORMAL AND INFORMAL RECOGNITION
Informal recognition is at the discretion of the
managers, and recognition should take place when
it is merited. Informal rewards should be
personalised, spontaneous, immediate, meaningful
and consistent.
Formal recognition strategically reinforces
established employee behaviors through material
incentives or rewards. This recognition of behavior
has been shown to increase morale and give
employees a sense of worth in their organization.
Basic steps for developing a formal recognition
program
1.Be realistic
2. Think about program structure and design
3. Tailor your scheme
4. Promote your rewards scheme effectively
5. Continue to manage your program
6. Share your success

Reward and Recognition Approach Outcomes
1. Reduced level of employee turnover
2. Reduced level of sickness absence being sustained per
year
3. Improved recruitment in HR practices
4. Reduced business mileage due to travel for work plans
being integrated into reward strategy
5. Improved employee satisfaction level
6. Improved employee advocacy about the council as an
employer
7. Satisfaction with reward and benefits (excluding salary)

Future Reward and Recognition Challenges
1. C-suite contribution
2. Instant HR processes and feedback
3. The rise of HR analytics, automation and
artificial intelligence
4. Multi-disciplinary approaches throughout
organizations
5. Flexible working and total rewards
6. Mental health

Reward and Recognition Program Design
1. Identification of company or group goals that the
reward program will support
2. Identification of the desired employee performance
or behaviors that will reinforce the company's goals
3. Determination of key measurements of the
performance or behavior, based on the individual or
group's previous achievements
4. Determination of appropriate rewards
5. Communication of program to employees

Trend and Best Practices
1. Rewarding teams and individual
2. Realization that some employees value recognition
as much as merit increases and bonuses
3. Employees recognizing employees
4. Greater use of informal/spontaneous awards
5. Improves publicity of winners

Characteristics of Successful Program
1. Senior management support and involvement
2. Include employees/ managers in design and
implementation
3. Keep programs simple and easy to administer
4. Tailor rewards to individual interests, needs, desire
5. Match the reward to the achievement
6. Communicate
7. Be timely and specific
8. Make sure each employees understand what they did to
earn the reward


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MOTIVATING YOUR

• Organizational success is driven by

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

MOTIVATING YOUR TEAM SHEENA CLAIRE V. DELA PENA

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