Employees always enjoy being thanked for their contribution on work. So a reward is considered to be something that is given in return for good behavior or given for some contribution. If the company does it well, it will give the company good result. Maybe the company has to spend money in the beginning but it’s benefit helps company save cost twice times. The goal of reward for employees can be summed up in the following equation: Right People + Right Rewards = Right Results.
To do this, it is necessary to set up the process for a Recognition and Reward System, which includes 7 steps:
Step 1: Choose the elements/ requirements for process
Step 2: Select the right person
Step 3: Select the right rewards and estimate the budget
Step 4: Introduce process
Step 5: Implement
Step 6: Evaluating and improving process
Step 7: Providing in the future
This Recognition and Reward System can be both tangible and intangible awards that everyone can earn and that everyone enjoys them.
Step 1: Choose the elements/ requirements for process
In the first step, the company has to measure current Recognition and Reward System.
It needs to find out and identify the strengths and weakness of this system. With strong points, AEON must develope them and avoid weak ponits. To find out the weakness of current system, AEON can collect information by asking some questions. For example:
Are you pleased with your company’s current situation?
Does AEON have any congratulatory parties or other events to thank for employee’s contribution?
Could you tell some reward that you got, please?
Is the reward value to you?
If you have power to make changes current system, what will you do?
Based on this data, company can analyze weakness of current Recognition and Reward System, which employees are not happy with this.
Step 2: Select the right person
The purpose of this step is choose the right person, who has the effective contributions for AEON. This selecting the person who could become candidates in company can be based on the company's annual results assessment, or AEON can set up the score for employees. The AEON has to ensure that the process will show the right person.
It needs to identify the criterias to select the right people. Questions to be asked to support for finding the criterias as below:
Who is in a role to influence the company?
What are some of the characteristics you would like to see in a person who have the good contribution for AEON?
What specifically will you require of your selected people?
Who are the person with good recognition in AEON?
Step 3: Select the right rewards and estimate the budget
After selecting the worthy person, selecting the right rewards is an extremely important step of this Recognition and Reward System. The rewards are ensured that they match employee’s needs and expectations. Additional, price of these rewards is enough for AEON’s budget. The cost of rewards for employees is deducted from company’s taxable income. So the rewards for employees will help AEON reduce tax and encourage employees to contribute to company. The value of rewards can follow as:
Position Current system Planning system Different expenses General
Director A car Award certificate + A car Award certificate
Head of Department
A trip in the other countries
Award certificate + a trip in the other countries or heal check - up package for member in family
Award certificate
Team leader A trip in Vietnam 1 monthly salary Estimate 7 million
Supervisor No 1 monthly salary 1 monthly salary
Table 4 – The rewards per year
Step 4: Introduce process
It is the time to allow everyone to understand, test and evaluate the designed process.
AEON can start introducing Recognition and Reward System in Febuary of Y2018 after setting up the process.
Step 5: Implement
After introducing this Recognition and Reward System, it needs to do in March of Y2018. In March, AEON has the assignment record of employees already. So, it is convinience for selecting people.
Step 6: Evaluating and improving process
AEON must develop an evaluation mechanism for the process. It needs the long time to get result of changing. A good Recognition and Reward System will help the company promote employees and reduce the turnover.
Evaluating is a meaningful step to find out the mistake. Based on the result of valuating, AEON can fix the mistake of this system or develop strong points.
Step 7: Providing in the future
Keep going on processes needs to be done in the future. To do that, AEON needs to create an approach that will facilitate reminding people and department about using Recognition and Reward System and to prevent people following from old system.