How to Create a Bonus Recognition & Reward Program
Recognition and rewards programs can be invaluable tools for improving employee morale, retaining top performers and maximizing output across an organization. That said, successful implementation requires setting achievable goals, identifying available resources, conducting prior research and establishing metrics for success.
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Instructions
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Set goals for your recognition and rewards program and try to define its scope. Do you want to retain a few key personnel or boost morale throughout your organization? Keep these goals in mind when allocating resources and defining metrics for the program.
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Determine what resources you can devote to your recognition and rewards program. Typically, the value of resources allocated to the program should correspond with the value of the goals to be accomplished. Programs aimed at improving workplace performance, for example, often involve monetary incentives. Such efforts are often far more costly than programs implemented to improve workplace morale.
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Brainstorm possible programs while keeping the goals and available resources in mind. Collaborate with other decision-makers in your organization and make note of the best ideas.
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Conduct research within your organization to determine which program will be most effective. Where appropriate, utilize typical research methods such as surveys, focus groups and interviews to solicit opinion from those who will be affected by the program.
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Decide which program to implement by determining which program is most likely to achieve your stated goals using the resources allocated for it. Your decision should be supported by the evidence gathered through research and feedback from potential participants.
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Develop metrics. What means can you use to determine success or failure of the program? How many of your initial goals must be accomplished for the program to be determined a success?
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Implement the program. If your organization is relatively large, a pilot program might be appropriate.
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Monitor program performance. Conduct periodic reviews according to the previously determined metrics. These reviews should produce both ratings of the program and recommendations for future action. Does the program need more resources to succeed? Could it be better targeted? Are there any unintended consequences?
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Tips & Warnings
A retention and rewards program should never have negative consequences. Frank and open communication is a must. Throughout all stages of the process be careful of making empty promises or alienating people not included in the program. Avoid creating perverse incentives and promoting jealousy between employees. For example, a rewards program aimed at improving the performance of struggling employees must be tailored to keep top-performers happy. Thorough research and discussion is key in avoiding these potential problems.
