Reward & Recognition in Performance Management
Reward
& Recognition in Performance Management
In previous posts we were
talking about theories, principles and how PM is being practiced. With this
article we are to discuss about the reward and recognition with the measurement
of employee performance (Shawn 2023)
In any context, Once the
set targets or workload achieved employees tend to expect something in return
that is beyond salaries. This is typically human nature. Any HR division or
employer needs to understand it. And on the other hand in order to make sure
set goals are achieved employers also issue some attractive approaches towards
employees. That means rewarding and recognition shows benefits to both parties.
(Bayashi 2022)
What is reward and recognition?
This is a system where people are acknowledged for their performance. In both reward and recognition there are some similarities as well as differences. Key similarity of two approaches is their aimed purpose. (Rober 2021)
Reward is generally fixed
and can be measured straight forward since it is offered against a given
target. KPIs measured for a certain time period is the parameter for reward.
The reward probably be a tangible thing mostly a monetary offer.
Examples – Bonus, Foreign tours, other gifts
Whereas recognition is a
more intangible thing, management get a situational approach to recognize
employees and can be written as a low-cost method where focus on more moral or emotional aspect of the employee. And this is a long-term perspective.
Examples – A good
designation, Appoint as a team leader, praise in front of others, employee of
the month (Peter 2023)
Being
in practice
Now we have come to the implementation
stage that is of course a sub process where a systematic approach is crucial to
practice, and it should be a justified way as counter arguments against the
measured method are possible from the employees.
Suggest a good reward and recognition process includes following characteristics
- Clear and measurable performance goals
- Communicate the goals in advance
- Regular review and coaching
- Fair evaluation process
- Acknowledgement performance with a value to employee
Traditionally in certain
cases the reward and recognition have been considered as non-value activities. Viewed
only as a cash outflow and no return on investment. However, on a detailed study it is evident
that these provide a set of benefits for both parties. Here are some key benefits.
- Earning of employee could go high
- Increased motivation and engagement in the staff
- Recognition
through delegation could increase capacity level of employees
- Career
growth
- Reduce
job stress and increase job satisfaction
Benefits of rewarding & recognition to employees
- A
motivated staff would chase for targets set
- Aligning
of corporate goals with employees
- Foster innovation
- Can attract top talent
- Positive
work culture
- Have
a loyal employee staff
Finally, it is evident that being rewarded and recognized is important for both parties employee and employer. It serves as a powerful tool to maintain goal congruence.
Work cited
Shawn,
2023. Performance management. [Online]
Available at: https://wethrive.net/performance-management/10-principles-performance/
[Accessed 5 December 2023].
Bayashi, 2022. Performance management. [Online]
Available at: https://www.peoplebox.ai/blog/principles-of-performance-management/
[Accessed 5 December 2023].
Robert, 2021. PM. [Online]
Available at: https://www.pockethrms.com/blog/top-principles-of-performance-management/
[Accessed 5 December 2023].
Peter, 2023. PR. [Online]
Available at: https://www.openhrms.com/blog/top-9-principles-of-performance-management/
[Accessed 5 December 2023].
Rewards & recognition is the best way to motivate the employee of the company. But reward scheme should be transparent & fair to the every employee.
ReplyDeleteI agree with you Dhananjaya. And also it should be tailored according to employee grades. Bottom/ executive grade level employees would mostly prefer monetary rewards whereas top grade/ managerial level employees would mostly prefer non monetary rewards like recognition, promotions
ReplyDeletevery useful discussion you having in this blog regarding performance management , well organized and using factor form make it more understandable for the readers, great post !!
ReplyDelete