Reward and Recognition Policy
                     Reward and Recognition policy
Index 
• Aim of the Policy
• Why we need reward and recognition policy?
• Who all it includes?
• How to create an effective reward programme?
• Why to reward employees?
• How to reward employees?
• Types of incentive 
• Nomination and selection
Aim of the Policy
• The major aim of reward and recognition policy is to attract and retain 
the best talent
● To retain talent, it becomes important to recognize the efforts put in by 
the employee in terms of performance, attitude, and achievements
• To build up an organizational culture where good work done by 
employees is valued 
● Tremendous efforts are recognized.
Why we need reward & recognition policy?
• To have a systematic approach towards the appreciation of rewards, there 
is a need for reward and recognition policy.
• In attracting and retaining talent within the organization
• Acts as a morale booster 
• Promotes 3 P's i.e. Productivity, Positivity, and Promotion
• Builds up motivation in the workplace
Who all it includes?
It includes all regular Employees 
How to create an effective reward system?
Choose Evaluate the 
programme
the type 
of award 
Target the 
audience
Communicat
e
Choose the 
Target
Determining 
the criterion
Know your 
budget 
Why to reward employees?
Increase in 
productivity
How to reward employees?
• Monetary incentives
• Non Monetary Incentives
Monetary Incentive  
Merit Pay Commission Suggestion Plan 
Profit 
sharing plan Stock option Perks 
Pay and Bonus Fringe 
allowance Benefits
Non monetary Incentives
Formal Rewards 
Career advancement job enrichment
Some more non monetary Incentives 
Team Trophy Lunch with CEO Framed letter of appreciation
Dedicated corner in 
Team Jersey Team  Training 
company's newsletter 
Peer to peer 
recognition
Nomination Process
● Discuss with HOD that they wish to 
Immediate Manager 
nominate employee/team for a reward
● Discuss with immediate manager, make 
recommendation for the employee
●
HOD If valid make recommendation for the employee and gives approval, if not valid  discuss rationale with 
manager. 
● If valid process to  HR. 
● Review nomination. If valid, process 
request including setting the monetary 
HR 
amount. If not valid notifies immediate 
manager of non inclusion with rationale
Continue.......
● Discuss with HOD that they wish to 
Immediate Manager 
nominate employee/team for a reward
● Discuss with immediate manager, make 
recommendation for the employee
●
HOD If valid make recommendation for the employee and gives approval, if not valid  discuss rationale with 
manager. 
● If valid process to  HR. 
● Review nomination. If valid, process request 
including setting the monetary amount. If not 
HR 
valid notifies immediate manager of non 
inclusion with rationale
Selection 
• Selection Criteria:
    Selection criteria must be documented as part of the 
Employee Reward and Recognition Program. The 
Finance department may designate an individual or 
committee, working in conjunction with the Human 
Resources Representative, to develop specific award 
standards and selection criteria, and to nominate or 
select award recipients.