Employee Rewards And Recognition

CHAPTER 3

THEORETICAL BACKGROUND OF THE STUDY:

Employee rewards and recognition (also referred as staff appreciation) isthe acknowledgement and appreciation of an employee’s contributions towards an organization.There are multiple elements present in the employee recognition, and variousmethodsmake the deliveryof those elements to individuals and teamsin an effective way.

Although rewards are commonly given by managers or supervisors, the act of giving recognition is not the exclusive effort of management. Even the peers, clients and customers of the organization can give the Recognition.

Employee engagement

Organizations across the worldknow that there is a need and requirement to improve the employee

H2: Non – monetary rewards are positively linked to organizational performance

H3: Monetary and non – monetary rewards are positively linked to organizational performance

TYPES OF RECOGNITION

Top – Down Recognition

The employee’s superiority, their most valuable contribution towards the organization is witnessed in a top-down employee recognition system method. There are various types of top-down recognition. Some of them are:

Years of Service Award

The employee’s continued contribution towards an organization over a periodcould be recognized by awarding ‘Years of Service’ award at regular intervals, or milestones. ‘Years of Service' award does not often involve financial reward. The common awards include: plaques, engraved pens, or group greeting.

Employee Appreciation Day

This Day can be called as a semi-formal holiday. From past 20 years, other companies have embraced the unofficial holiday by paying homage to their employees on the first Friday of March.

Organizations aregenerally known to celebrate the Employee Appreciation Day with small company-funded events like barbecues, or small office parties. Extra financial compensation is not an element of Employee Appreciation

This is achieved when it has got the most potential for impact. The more time it passes, the less associated the contribution becomes with its recognition.

Frequent

Recognition is more effective when it is given frequently. Employees make many contributions throughout a single week. Failing to provide regular feedback will eliminate the opportunity for those contributions to be appropriately recognized and rewarded. If frequent recognition increases the likelihood of an employee feeling undervalued in their role.

To illustrate this point, let's look at another example:

Rashad does a superb job, day in and day out, but his excellent work gets recognized only once in a year, or once per quarter. This recognition's impact will be severely diminished.

If Rashad is recognized on the spot for only one of the contribution he makes each quarter, countless contributions will go unrecognized and unrewarded. This provides him little to no external incentive to continue working at that level.Frequent recognition helps in encouraging the employee like Rashad to continue putting forth a consistently exceptional effort, by providing a consistent reminder of its