19 October, 2021

What categories do you need in your RnR framework?

Digitizing R&R processes has almost become a default in the Indian corporate landscape over the past year. Each organization, however, has unique R&R requirements based on its’ industry, size, geographical spread, workforce demographics, organizational culture and so on. This makes it imperative to customize any R&R software to not only fit but enhance the firm’s unique work culture. This blog is a general guide on one of the first steps in creating a digital R&R platform, that is, building a framework of reward and recognition categories.

Types of Recognition Categories

When deciding on recognition categories, multiple lenses must be used to create a holistic rewards program:

  • Performance based categories

These categories should be able to map the KPIs associated at the individual, team, department and org levels to the employee recognition framework. For example, these can be for the highest achievement in sales or for solving a difficult customer problem or for impeccable execution. To bring added transparency and impact, digital performance scorecards can be configured in the R&R platform that managers can populate, allowing teams or individuals to view their scores on various parameters throughout the year.

Sample Category Names: That was impressive!, Good job!, Shining beginner, Customer Delight, Deal Closer

  • Value based categories

These categories are for employees who exemplify or work in high alignment with company values. Examples can be integrity, quality, customer obsession etc. and these can be purely manager-to-employee recognitions. In fact, attempting to brainstorm value-driven recognition categories can also be a way to determine what values do you want your employees to embody in the first place, thus putting them into a firm wide cultural mandate.

Sample Category Names: Delivery Excellence, Integrity in Business, Safety First

  • Behavioral Categories

These categories are used to promote favorable behaviors in the organization, both related to individual performance like hard work, being helpful etc. and as a member of a team such as displaying teamwork. For example- if you wish to model inclusion as a behavior among managers, there should be a recognition category for inclusion, which subordinates, or superiors can give them as reverse recognition.

Sample Category Names: People’s Leader, Team Player, Above and Beyond, Positive Attitude, Thank You!

Monetary or Non-Monetary Recognitions

The popular question- should recognitions be monetary in nature? It can depend on the nature of the recognition. For instance- revenue generating activities can be rewarded with a cash payout or reward points along with the recognition. The amount of cash/points for each category can depend on the level of impact of the activity on organizational growth. However, research has shown that a mix of both monetary and non-monetary recognition work best to boost employee engagement levels.

Automated or Manual Recognitions

For larger organizations, setting up an automated rewards system can be helpful in streamlining the R&R program. For this purpose, the R&R software can be integrated with the HCM or performance management tool to trigger automated recognitions upon the achievement of a milestone by an employee. Alternatively, certain rules or algorithms can be setup within the R&R tool to enable automated recognitions/nominations.

With the advent of remote work and hybrid work, rewards and recognition need to be delivered digitally. Any employee engagement platform should include an exhaustive list of recognition categories that can honor various skill sets, behavioral traits and types of contribution.