Prof.

Mamta Mohapatra and

Prof. Swati Dhir

Submitted by Group 5

Akshay Sethi 19PGDMHR04

Dharna Lakhmani 19PGDMHR16
Rajiv Ghosh 19PGDMHR37
Seema Shamshi 19PGDMHR48
Vaibhav Joshi 19PGDMHR59

1|P ag e
 Acknowledgement

It gives us immense pleasure in bringing out the research of the project titled “Rewards and

Recognition”. Firstly, we would like to thank our teachers and guide professors, Prof. Mamta

Mohapatra and Prof. Swati Dhir for giving us their valuable suggestions and ideas. They encouraged

us to work on this project.

We are grateful to all involved in this project as without their inspiration and valuable suggestion it
would not have been possible to develop the project within the prescribed time.

2|P ag e
 Contents

Table of Contents Page no.

1. Introduction 4-7

 What are Rewards and Recognition?

 How can Rewards and Recognition be used for Talent

Management?

2. Best and Innovative practices for Rewards and Recognition 8-9

3. Companies that follow innovative Employee Reward and 10-16

Recognition practices

 Nestle

 P&G

 HUL

References 17

3|P ag e
 Introduction
Many company owners aim for quality enhancement in a dynamic market environment while reducing
costs. A robust economy, meanwhile, has contributed to a tight job market. While organizations need
to get more from their employees, their employees are searching for more of them. Employee incentive
and recognition initiatives are one way to motivate workers to improve workplace habits and essential
actions for the benefit of companies.

What are Rewards and Recognition?

Rewards vs Recognition

Though sometimes used interchangeably, both words must be treated independently as the reward and
recognition systems. Employees' reward system refers to a company’s programs to reward
performance and motivate staff at individual and/or group levels.

Typically, they are treated as distinct from salaries, but can be monetary in form or be a business
expense otherwise.

As pointed out, while employee recognition systems are sometimes paired with reward programs, they
4|P ag e
 have another function. We are intended to offer tangible gains — social incentives. Although many
elements for the design and maintenance of reward and recognition systems are the same, it is important
to remember this difference.

Differentiating Rewards from Merit Pay and The Performance Appraisals

Organizations must distinguish the pay system from the reward systems while creating a rewards plan.
Financial incentives should be related to employee or company successes, particularly those given
daily such as rewards, benefit sharing, etc., which should be regarded as "pay at risk" to differentiate
them from salary.

In so doing, a manager can avoid the employee's sense of entitlement and ensure that the reward
emphasizes excellence or achievement instead of fundamental skill.

Designing a Reward Program

The keys to developing a reward program are as follows:

 Identification of company or group goals that the reward program will support
 Identification of the desired employee performance or behaviors that will reinforce the company's
goals
 Determination of key measurements of the performance or behavior, based on the individual
or group's previous achievements
 Determination of appropriate rewards
 Communication of program to employees

Types of Reward Programs

 Variable Pay
 Bonuses
 Profit Sharing
 Stock Option

Recognition Programs
The businesses with a strategic advantage have the most educated and skilled workers in today's extremely

demanding working climate. Yet even the best employees cannot do well if they are not properly inspired.
This is why the recognition of employees at work needs to be an intrinsic part of the ethos of a
organization

Employee recognition is the acknowledgment of an outstanding result by a company's staff. In theory,

workplace recognition helps to improve attitudes, behaviors and events contributing to improved
efficiency and successful business outcomes.
5|P ag e
 One of the greatest motivators for employees is their peers' appreciation. The only approach to
do that is by acknowledging that they are successful at what they do.
Although one may compare incentives and prizes to cash promotions or lavish recognition
ceremonies, appreciation by employees must not be either expensive or glamorous. Employee
recognition can be as candid as a pat-on-the-back and a genuine compliment. This can even be as
simple as a 'thank you’ email or a warm welcome.

Some Ways of Effective Employee Recognition

 Employee Appreciation Events/Days

 Bonus Treats
 Employee Recognition Wall

How can Rewards and Recognition be used for Talent Management?

Motivate and Retain Talent

Your incentive package and the rewards scheme represent and reinforce all the organizational culture.
Modern salaries do not completely reflect the commitment of employees. To remind employees what
is in it for them, a recompense scheme is required.

To complement rewards, recognition should be used. The most powerful and efficient behavior
modification known is motivational reinforcement. It should be clear to any boss when and how to
enforce it. It should not be limited to job performance reviews.

Attract Top Talent

You must distinguish from your competitors if you want to attract a better candidate. Why would top
talent choose your organization instead of your competitors.

Candidates strive for more than a good salary and full-time benefits; candidates want their contributions
and successes to be recognized. They want a better place to work — a organization that respects and
honors its workers for its positive business culture. Rewards and Recognition start with hiring.

Performance Management

The foundation of the high performance is extrinsic and intrinsic motivation, which results from a deep
sense of mission and unity, meaningful rewards, and recognition practices. The secret to this is that
good performance is not the product of processes that give recognition as an incentive, but instead
arises from an organization’s internal structures. In the end, you must always consider the sacrifices of
your staff at the same pace as you anticipate excellent results each day. The introduction of an efficient
6|P ag e
 and practical recognition system at all personnel ranks would also offer you tremendously positive
outcomes.

7|P ag e
 Best and Innovative practices for Rewards and Recognition
1. Spot Awards: Smaller, more widely used and more immediate rewards are more successful than larger
and slower rewards. In comparison to the annual or quarterly award, modern R&R technology platforms
are empowering leaders to consider, recompense and improve healthy behaviors.
2. Integration with Performance Management System: If the R&R programs can be incorporated with
the performance management systems, the lag time between results and rewards can be further reduced.
Such integrations quickly achieve dedication and efficiency. The integration of Xoxoday and Freshdesk
is a good example. Tens of thousands of customers worldwide use the customer service applications of
Freshdesk. Xoxoday is fully integrated with Freshdesk and customers are charged the very moment
when they hit their goals and are even able to immediately redeem their offers.
3. Catalogue with extensive choices: It doesn't work to reward millennial with minimal or no options.
Given their different desires and ambitions, an HR leader cannot decide what will appeal to them all.
They can choose from a vast catalogue, which contains millions of offers, ranging from elite experiences
to whatever they want to purchase from Amazon or Flipkart.
4. Social recognition: The appreciation of workers is not something to be achieved within doors closed.
Go public as long as you remember your team. You should show your hard-earned gratitude to your
workers in a public forum. It's also a way of publicly accessing the social media with employee
appreciation. Naturally, the workers spend a lot of time on different social media sites. They would love
to support them on these sites.
5. Peer to Peer recognition: The appreciation of peers is especially significant. Often people are more
conscious than managers of their employees' jobs. They work alongside each other and their connexon
to each other is more impersonal. They also see qualities which managers neglect. A healthy
appreciation of peers is important to bring the organization to life. It can easily be achieved by
conducting employee surveys and finding those with highest votes. Vantage Circle’s Reward and
Recognition program also allows people to recognize individual colleagues immediately.
6. Meet, Greet and Eat: Do you still communicate with your employees in structured business
environment? Certainly, it is time to adjust the situation. We've got to make space for these outdoor
lunches to our schedule. The best moods come from a good meal. Outdoor lunches can be an ideal
opportunity to strengthen connectivity in the company.
7. Promoting Wellness at workplace: Promoting well-being in the workplace can support a company in
many respects. In addition to the advantages of improving workers ' health and well-being, minimizing
absenteeism and rising efficiency, the company is well-presented. A company must have a sound
corporate wellness program. When additional attempts are made to enhance employee well-being
(outside their work), they are automatically respected, attended to and thus remembered.
8. Feature your employees in a short film: Most people enjoy being on the television. Create a little
video of five to ten minutes and let your workers be the stars. Ask them to share about their experiences
and about the company. The amount of voluntary participation may very well surprise you. Such
activities help you feel stronger and more "part of" your staff. And of course, you can share the video
when it's ready with everyone
9. The classic Wall of Fame: The fact that the office has a wall of fame with milestones or
accomplishments for all the employees to see is an absolute icing point in the employee recognition
8|P ag e
 cake. It becomes even more obvious and important to understand. Digital displays with live streams can
also be used in prime positions at recognition, birthdays and anniversaries.
10. Primo Parking: If the job reserves, for the executives, the primary parking spaces, it can also be used
as a reward plan for employees. We may use this incentive system to allow workers to follow
environmentally sustainable travel strategies such as carpooling. We can also make them know how
important they are by allowing our employees to enjoy such premium privileges.
11. Celebrate work anniversaries: It's a perfect way to recognize your employees and mark milestones
like their anniversaries. Most of the time, employees seem to forget how far they've been to work while
staying busy. But surprising them or throwing a small party at their place of work, they would surely
do the job. The role of instilling awareness about how important it is and how much it helped to develop
business.
12. Spend time with the CEO days: An effective way to appreciate the workers will be to encourage them
to meet with the CEO or the company president. They'll find out that the company really appreciates
their good work. Special meetings may take place with the head only for those who have earned it. Their
success may be based on different parameters, positive attitude, tenure, innovation etc. A special video
conferences with the president may be performed if physical meetings cannot be completed.
13. Gamification of Rewards and Recognition programs: In general, gamification involves game
elements in non-gaming contexts. Gamification in the appreciation of our workers is an excellent
concept. It will stimulate interest and improve employee productivity. The goal is to make an
instantaneous and ongoing business of employee recognition. The next move is to keep track of the
employees' compensation and recognition. Create leaderboards, badges and awards to honor workers in
various aspects of their working lives. Competition can be a big motor if it is safe. The quantification
and control of R&R would be simpler with a point-based reward and recognition system.
14. Acknowledge non workplace achievements: Who knows if the team includes a sporting star or an
aspiring artist. You should also still consider the external accomplishments of an employee. This means
that everyone at work knows each other's skill. And encourage them in their endeavors to improve
working relationships as good colleagues.
15. Offer a welcome package: Welcome new hires with a couple of freebies on the first day of work.
Giving a goodies bag with branded cups, pen and postcards signed by members of the team. It's a great
way to make people feel like they're always part of it.

9|P ag e
 Companies that follow innovative Employee
Rewards and Recognition practices

Nestle

At Nestle, the reward philosophy is to provide competitive opportunities that link to and
reinforces the companies culture of equitable, fair and just distribution of Rewards and
Recognition. The culture at Nestle ensures that the principles are followed in whole, thus
facilitating the company’s ability to attract, retain and manage talent in a healthy and wise
manner. The ultimate objective is to create a rewards and recognition program that gives Nestle
a competitive advantage so as to fulfill the promise made to the stakeholders in terms of
absoluteness and quality.

The guiding principles of Nestle’s Rewards and Recognition philosophy are as follows: -
 Having a transparent, Consistent & Just Reward Framework.
 Accuracy and speed in delivering a simple reward plan.
 Align personal goals with business goals.
 Having an innovative and insightful Engagement to forward employees best interest.

Nestle’s Reward Program

The nestle my-rewards program lets the employees adjust the company benefits program to
match his/her own needs and lifestyle. It’s the cafeteria approach provided by Nestle to all of
its employees. This helps the employees have more options, enjoy better total compensation
and optimize the value of his/her own benefits.
The employees can unlock more options with the increase in their tenure as well as achievement
of targets. The benefits can be
 Claim – Flexible Spending Accounts are tax-free accounts that the employees can use
on various areas. Nestle allows its employees to use flexible accounts for spending on
the following areas:
o Personal enrichment,
o Personal wellness,
o Social Enrichment,
o Home life enrichment

 Convert – Existing benefits can be flexed and converted:

10 | P a g e
 o Convert Vacational leaves up to 8 days. Daily Rate = Monthly Rate * 12/251
o Convert 25%,50%,75% or 100% of Taxable 14th monthly income to points to
benefits.
o Wellness Leaves: - For 0 Sick leaves used in the last year, get 4 paid leaves. For
1 Sick Leave used, get 2 paid leaves.
o Life- Stage points: - Given to employees who are the sole source of dependence
of their family. Flat rate of 30,000/- available for all employees. Can only be
used for medical coverage and expenses.
 Choose –
o Avail additional vacational leaves up to 24 days.
o Avail De minimis Benefits: - Avail tax free benefits up to Rs. 2500/- for food
and 500/- for laundry.
o Medical Coverage for parents: - Up to 65 years of age.
o Medical coverage for siblings: - for up to 21 years of age.

Other Rewards include:

 Allowance – Clothing, entertainment, Family Planning, Break subsidy
 Loans – Car, Education, Optical, Home
 Medical Benefits – Hospitalization, Outpatient, Dental
 Leaves

11 | P a g e
 o Vacation Leaves (18 for below 10 years of service, 24 for above 10 years of
service)
o Sick Leaves – 18 days
o Maternity Benefits – 4 to 6 months with full paid salary.
o Solo Parent Leave – 7 days
o Emergency Leave
o Bereavement Leave – 9 days
o Court Leave – 5 days

Recognition Program

Besides the recognition program, Nestle has launched a virtual ‘Real Recognition program’.
This helps them use the intranet to Reward their superiors, peers and subordinates. Through
their online: -
 Recognize their peers with Real Thanks and Real Star incorporating E-Cards and
Badges for living the Nestlé Success Drivers
 Use their smart phones and tablets to send and receive recognition, access AwardperQ
balances and redeem for awards
Nestlé Managers will also be able to:

 Reward employees using Real Excellence for large contributions to the OMP
 View dynamic reporting of recognition activity
 Recognize employee Service Anniversaries with a personalize website, inviting co-
workers, friends and family to contribute

For more details on the ‘Real Recognition program’, one can log on to Nestle's Real
Recognition Program.

12 | P a g e
 Procter and Gamble

An employee at P&G is valued for the work they do. They offer market competitive salaries
for the work offered by the employees. These salaries are carefully benchmarked against the
best companies globally, to provide the employees with the best possible rewards that they
deserve.
The company very well takes care of the leisure time of its employees, by offering them with
the best salary that they deserve owing to which they do not have to compromise on their free
time/ vacations.
Just like all other companies, P&G also has increment structures for its employees, it depends
on how meaningful the contributions have been from the employees and also on how the
employees have been able to add to the success quotient of the company.
P&G also takes good care of the financial needs of its employees, various benefits like offering
interest free loans, tax-advantageous share purchase plans for the employees, a well charted
out pension plan for the retirement of the employees, providing better knowledge to help their
employees learn and manage their finances better.
The company also believes in providing various kinds of perks to its employees for example
discounted P&G merchandise, to give the employees a sense of being a part of the organization,
great saving deals, not just on groceries but also the vacation they have been looking out for,
for quite some time.
The company motivates its employees to live a healthy, happy and fulfilling life, and for the
same, they have special kinds of benefits for their employees. P&G in different countries comes
up with various different kind of benefits based on the preferences and liking of the masses in
that particular region/ country. In some regions, they offer well-equipped gyms, fitness and
relaxation classes whereas in some regions the company also offers yoga classes and club
memberships, again, depending on the region and levels.
The organization understands the importance of near and dear ones, they provide their
employees with options of various kinds to look after their families in times of need. Parental
leave policies, flexible working set ups, health insurances, term life insurances, group life
insurances, the right kind of care for the children of their employees, by giving them dedicated
support helplines for the same.
P&G is all about making lives better and easier, and they hold it true even for their employees.
They constantly work on giving their employees what they want, be it flexible work hours,
remote working, vacations for some leisure time with family and even personal leaves.

13 | P a g e
Power of You

The Rewards and Recognition program of P&G is called Power of You which is a global
program that recognizes the employees of the company and rewards them based on their
superior performance compared to their peers.
It was also realized by the company that the employees that were recognized through Power of
You were highly unlikely to leave the organization which meant that the program was good
enough to retain employees. But the problem was that only the employees that were recognized
were retained, not the ones that were not and hence to design a recognition and rewards
program that empowers everyone to show appreciation, not just the managers, can foster a
culture of connection.
P&G decided to revamp its Rewards and recognition program- Power of You because as an
organization it realized that it is supposed to be a strategic investment to engage employees.
There were five major changes that were made to the program-
 Reframed “Power of You” as “Everyday Appreciation”-
The new changed program is more about appreciating one another for the day to day work that
the employees do in the organization, as the goal is to drive employee engagement, this will
help.

 Aligning Recognition to KPIs-

The recognition moment of any employee is associated with the existing values of the company
which are known to be the key success factors for P&G.
 Letting everyone show appreciation-
Initially, in the Power to You program only managers of the employees at P&G were supposed
to send the monetary rewards, but now they are switching to a more inclusive pattern of rewards
and recognition where everyone gets a chance to appreciate the efforts of others.

 Make the social recognition newsfeed in the organization public-

This was an important step as it involves everyone to know about recognitions and rewards,
lets the person who is rewarded feel much better about the recognition when they hear cheers
from their peers.
 Give the employees choice for their rewards-
Apart from only offering locally redeemable gift cards, a good idea was to also embed a
merchandise magazine for employees to look out for their own choice of rewards, based on
their needs and likes.

14 | P a g e
 Hindustan Unilever Limited

The rewards and recognition policies/practices at HUL very closely mirror the culture of the
organization. More so, at HUL, they follow certain guidelines to conduct their rewards and
recognition program. These guidelines help them setup fair and competitive structure for
rewards and recognition while instilling the qualities in their culture. Having a fair and
competent rewards & recognition system helps the company to attract and retain good talent.
The guidelines for HUL’s rewards & recognition policies are mentioned below.

 The program should be transparent, fair-minded, and reliable.

 The program should be able to engage the employees with the job and should be of
relevance for the employees.
 The program should not be monotonous.
 The program should be precise.
 Besides, all the program should benefit the bottom-line of the company.

Rewards and Recognition Programs at HUL:

The R&R programs at HUL are divided in three categories – Monthly, On the Spot, and
Quarterly.
Monthly R&R programs:
1. Star of the Month: This is a monthly reward which is based on performance of the
employees directly. In congruence with the performance of the employees over the
month, the employees are categorized across four scales – E (employees who have
outstripped the targets), F (Completely achieved the targets), P (Didn’t achieve the
targets fully), and N (Haven’t achieved the targets). Here, out of all the employees, top
five are conferred with the award.
2. Customer Delight: Much like Star of the Month, this reward is also based on
performance. Interestingly, this is to do with the internal consumers of the organization
– employees from other departments. Employees are assessed based on four things –
Least complaints, rapid transfer of data, precision of data, and sort of the data.
3. Achievement – Talk Book (AT Book): This is a recognition program. Every month
AT book is floated across all the departments that depicts accomplishments of
employee and gives a colleague recognition form.
Quarterly R&R programs:

15 | P a g e
 1. Star of the Quarter: This reward is like Star of the Month program. The only
difference is that the reward is based on performance of a quarter. Rest, the
methodology is same as SOM.
2. Thinking Out of The Box: This section is a combination of rewards and recognition.
In this section, employees get to express their ideas and creative thoughts. This enables
the employees to put forth their submissions and at the end of the quarter best ideas are
rewarded. Besides, a personalized response is also given to the employees.
Spot Award:
1. On the spot award: This reward particularly pertains to the behavior of
employees. Employees are awarded on the spot for their conduct and logical
conduct.

Reward and Recognition Type Rewards

 Star of the Months Cash/gifts for top performers
 Customer delight Cash/gifts
 Achievement and Talk Book Public Recognition
 Star of the Quarter Cash/gift
 Thinking Out of the Box Cash, Certificates, Passes,
 On the Spot Goodies

16 | P a g e
 References

(n.d.). Retrieved September 14, 2020, from https://www.workforce.com/news/recognition-

and-rewards-help-motivate-and-retain-talent

-, R., By, -, Rani JosephRani Joseph is the senior manager, Joseph, R., & Rani Joseph is the
senior manager. (2019, September 27). Strategic rewards and recognition best practices.
Retrieved September 14, 2020, from https://www.hrkatha.com/special/build-a-happy-
workforce/strategic-rewards-and-recognition-best-practices/

10 Delightful Employee Reward and Recognition Ideas (on a Budget). (n.d.). Retrieved
September 14, 2020, from https://justworks.com/blog/employee-reward-recognition-
ideas

Dutta, D. (2020, August 12). 33 Employee Rewards and Recognition Ideas to Boost
Engagement. Retrieved September 14, 2020, from
https://blog.vantagecircle.com/rewards-and-recognition-ideas/

Employee Reward and Recognition Systems. (-0001, November 30). Retrieved September
14, 2020, from https://www.inc.com/encyclopedia/employee-reward-and-recognition-
systems.html

Nelson., E. (2019, June 14). Encourage Happiness at Work and Recruit the Employees You
Need. Retrieved September 14, 2020, from https://www.fond.co/blog/rewards-
recognition-top-talent/

Project on Rewards Recognition Schemes Staff Officers HLL - [PDF Document]. (n.d.).
Retrieved September 14, 2020, from https://fdocuments.in/document/project-on-
rewards-recognition-schemes-staff-officers-hll.html

HUL. (2020, September 14). HINDUSTAN UNILEVER LIMITED. Retrieved from HUL:
https://www.hul.co.in/Images/reward-policy_tcm1255-539357_1_en.pdf
Nestle. (2020, September 14). Real Rewards at Nestlé USA. Retrieved from Nestle:
https://tbcdn.talentbrew.com/company/1823/v1_0/docs/42555-Real-Rewards-
brochure4.pdf
Nestle. (2020, September 14). Total Rewards. Retrieved from Nestle:
http://pub.lucidpress.com/ea4b3d9c-b492-4ffb-8ff7-90bdd0c69b24/document.pdf

17 | P a g e