Reward Management & Use of Technology....

1.   Reward Strategy

An effective total rewards strategy is one of the most powerful resources an organization can have for communicating the value of employment with in the organization. Yet, unless your total rewards efforts actually reach your employees, it won’t make any measurable impact in terms of recruitment, engagement, retention, or any other area you’re focused on.

As per Charan, Barton, and Carey 2018 “If you want to scale the individual talent in your company, embrace the idea that you’ll need to reward that talent in new and customized ways,”

2.   Aims of Reward Management

In the words of Ghoshal and Bartlett (1995), the overall aim of reward management should be to ‘add value to people’. It is not just about attaching value to them. More specifically, the aims are to:

·        Support the achievement of business goals through high performance;

·        Develop and support the organization’s culture;

·        Define what is important in terms of behaviors and outcomes;

·        Reward people as per the value they add;

·        Reward people as per the organization values;

·        Align reward practices with employee needs;

·        Help to attract and retain the high-quality people the organization needs;

·        Win the engagement of people.

3.   Performance Based Reward

Performance based reward / reward assigned with certain predefined tasks, can play an important role in motivating employees. The theory behind this is that employees will be motivated to perform the assigned task if they think a particular reward will be forthcoming. It can be used as a powerful tool to strengthen the change in an organization. If what gets rewarded is indeed what gets done, the reward managers need to ensure that their performance-based rewards programs are properly aligned with the business strategy. Any disconnection between the two may undermine a company’s ability to achieve its goals.

According to Don McDermott 2017 To prevent that, companies must understand the seven key steps to successful performance-based rewards programs:

1.     Develop clear expectations and articulate those expectations through clearly defined goals.

2.     Create a clear line of sight; employees must see that their direct efforts will impact the overall results that management wants.

3.     Set achievable goals. If the goals are such a stretch that most employees believe that they cannot be attained, the program is doomed from the outset.

4.     Establish a credible system that includes quantitative measures of results. If performance-based rewards are to succeed, employees must have faith in the fairness of the measurement system.

5.     Empower employees to achieve goals. Ensure the entire system is geared to maximum productivity, communication and cooperation.

6.     Make rewards meaningful. Performance-based rewards programs that provide marginal rewards-that is, less than 10% of base pay-are rarely motivational enough to change behavior.

7.     Make payouts immediate. Employees need to “feel” the impact of their efforts by quickly experiencing the results.

4.   How Technology can help in Reward and Recognition

Deeper engagement - Recognition shouldn’t be limited to a specific individual or a teams, it must include all employees across the organization for motivation and to create a sense of belonging. Modern digitalization is a great way to confirm that rewards programs are inclusive and centralized.

Social Media - Everyone loves to have their friends and family to know about their success. Technology help the organizations and their workers to celebrate their success with the world at large.

Security and control - Technology helps the organization to ensure that their rewards programs are secure, connected, and aligned within an organization’s internal charter.

Real-time recognition - Today, everything operates on a right here, right now basis. Instead of annual performance reviews or occasional rewards, technology lets HR teams recognize any standout achievements in real-time.

5.   Benefits of Technology in Reward Management

With technology making its way to change at every level, a technology driven rewards and recognition program can truly make a huge difference. This is the high time for all digital experts, and HR teams to push forward on this growth path. Some of the key benefits could be

·        Greater integration with business outcomes

·        Greater freedom

·        Better visibility 

·        Better consolidation

6.   Reward Management & Use of Technology

Technology is having some massive implications for HR, from improving employee involvement, automating rewards / benefits and payroll, for increasing employee engagement with learning and development programs and organizational behaviors. The use of advanced analytics and powerful solutions have helped HR teams to evaluate what really works and what doesn’t. Likewise, Employee rewards and recognition programs cannot be exempt from this wave. It holds an immense potential for digitalization.

7.   Artificial Intelligence and Reward & Recognition

AI today is becoming very popular in every field of life– it’s becoming the norm. Organizations thus need to weave in the AI wave into the tide of change that is sweeping over the HR landscape in general and rewards, recognition and incentive frameworks in specific.

7.1 Personalization v/s individualization

The work is multigenerational and dynamic. The expectations from worker expertise has modified as a result of even as external customers need complete communications and offerings to talk to them, thus do internal customers (employees). AI tools within the pretext of friendly chatbots, cooperative robots, and even AI cooperation enablers permit deep data processing to create rewards and recognition formats not simply customized however personal – wherever they create sense to each worker.

AI can allow the shift from generalization to personalization and eventually to securement of rewards and recognition. This will, in turn, enhance the worker experiences, improve engagement and build a culture at work wherever people feel valued.

7.2 Meeting expectations v/s delivering happiness

AI is dynamical the game with gamification even once it involves rewards and recognition. With augmented reality changing how work appraisals work, rewards and recognition trends are changing as well. The idea is no longer being able to meet employee expectations but to promote happiness at work. That is a retention strategy that AI is looking through to fruition.

AI additionally permits the inclusion of the fun quotient in an exceedingly heap of otherwise monotonous aspects of work.

7.3 Prescriptive v/s predictive

AI and new technology will make HR operation a lot more appealing. With employee rewards and recognition too, the shift would be from the inherently reactive and prescriptive approach to making appreciation programs a lot more perceptive, proactive and predictive. With AI and engaging, immersive tools, the idea is to bank on data and create experiences that are valuable.

Predictive analytics coupled with AI would also help in projecting future trends in rewards and recognition and understanding how future generations at work would want to be appreciated.

Artificial intelligence can make rewards and recognition predictive, individualized and happiness-centric, the main objective is to create a culture where people enjoy working and appreciated for their efforts – a workplace where employees feel respected and motivated. AI tools also have the ability to create more transparent metrics to make appreciation schemes and tools a more open conversation.

8.   Annex-A:  Some of the finest Reward Structures

Facebook

·        Paid parental leave: In the US, women receive four weeks’ pre-delivery date, six to eight weeks (for vaginal/c-section delivery), Maternity Disability, and four months parental leave at 100% pay. Non-birth parents (including adoptive and same-sex) receive four months of parental leave at 100% pay. A $4,000 New Child Benefit is also provided.

·        Option to work remotely: Not available on a full-time basis, but the company offers flexible scheduling and employees may work remotely when needed.

·        Health/dental/vision insurance: HMO, EPO, and PPO offered. Extremely competitive in both cost of the insurance (per paycheck cost) as well as coverage amounts at the time of care.

·        Life insurance: Basic, spouse/partner, and child life insurance options available.

·        Flexible Spending Accounts: Dependent care and health care FSA Accounts available.

·        Relocation assistance

·        401(k): Plan with match.

·        Health club membership: Wellness reimbursement covers fitness expenses up to $720 per year.

·        Child care: In the US, up to $3,000 per year toward child care expenses up to age 5 years provided. Backup child care offered--10 days + an additional five days for children under one-year-old each year. Also offered: Subsidized daycare costs at $3,000.

·        PTO/vacation time: 21 days per year are accrued and 11 holidays. The Sabbatical/Recharge program also allows 30 days off every five years.

·        Sick time: Unlimited, unless eligible for a leave of absence program.

·        Disability income protection: In the US, up to 100% pay replacement from week 1-17 provided; at week 17-26 income replacement is 75%.

·        Paid cell phone

Additional benefits

·        On-site Medical, Vision, and Dental Center for Menlo Park office employees

·        Robust Military Leave benefits

·        Survivor Income Benefits

·        Lyra Mental Health

·        Nursing rooms on campus with industrial hospital pumps.

·        Bereavement leave: 20 days for immediate family member; 10 days for extended family.

·        Best Doctors service: Global benefit which includes use for employees and their spouse/partner, child/grandchildren/parents, in-laws, grandparents, and siblings.

·        Paid Family Sick Time: Three additional days for a sick child each year.

·        Paid Family Leave: Six weeks to take care of a seriously ill family member with 100% pay.

·        Fertility assistance: Assistance with surrogacy, freezing eggs, adoption, and fertility services.

·        Tax Desk support: For an annual employee cost, employees can sign up for on-going tax advice and guidance.

Google

·        Paid parental leave

·        Health/dental/vision insurance

·        Life insurance

·        Flexible Spending Accounts/Health Savings Accounts

·        Relocation assistance

·        Retirement plan/401(k)

·        Health club membership: Fitness classes offered at select offices.

·        Child care: Backup child care available in the US, Ireland, Canada, the UK, Singapore, Japan, and Australia (local country policies apply). In-home child care also available: Includes 10 subsidized days of either in-center or in-home backup child care and employees pay a copay. Employees can still access care after the 10 days, but must pay the cost out-of-pocket.

·        PTO/vacation time

·        Sick time

·        Disability income protection

·        Tuition reimbursement/education incentives

Additional benefits

·        Shuttle program available for employees with longer commutes.

·        Additional support available for employees who bike or walk to work.

Adobe

·        Paid parental leave: All eligible parents receive up to 16 weeks paid time off for the birth or adoption of a child. Birth mothers receive 10 additional weeks for medical leave for a total of 26 weeks of fully paid leave.

·        Option to work remotely: With manager approval, employees have the option to work from home occasionally, work a varied/adjusted schedule, and work part-time.

·        Health/dental/vision insurance

·        Life insurance

·        Flexible Spending Accounts/Health Savings Accounts

·        Relocation assistance

·        Retirement plan/401(k)

·        Health club membership: Fully equipped fitness centers onsite (in the San Jose, San Francisco, Seattle, and Lehi office locations). The Wellness Reimbursement Program reimburses employees up to $360/year for gym memberships, bike share memberships, fitness classes, massages, nutritional counseling, and much more.

·        Housing assistance: For interns only.

·        Child care: Backup care program available which provides up to 100 hours of care (with a copayment) through Bright Horizons.

·        PTO/vacation time

·        Sick time

·        Disability income protection

·        Paid cell phone

·        Tuition reimbursement/education incentives: The Learning Fund reimburses up to $10,000 per year for tuition and books for courses, graduate programs, and certain certifications that meet the reimbursement eligibility criteria. The Learning Fund will also reimburse up to $1,000 per year for short-term learning opportunities and skill development such as conferences and workshops, professional and technical training courses, online learning, and professional memberships.

Additional benefits

·        Sabbaticals

·        Bereavement leave: Provides up to 20 days (4 weeks) of full paid-time (base salary), per calendar year.

·        Leaves of absence: Parental leave, medical leave, family care leave, military leave, organ/bone marrow donation leave, and Welcome Back program.

·        Two Company Week-Long Shutdowns: In addition to company holidays and individual employee PTO, Adobe has two company-wide breaks each year, for a summer and a winter holiday. The dates of these periods change each year.

·        Personal and Family services: Adoption assistance, surrogacy assistance, fertility support, breast milk transportation, Employee Assistance Program (EAP), voluntary insurance benefits (pet, home and auto, long-term health care needs), Survivor Outreach Services, and Autism Spectrum Disorder Support Program.

Tesla

·        Paid parental leave

·        Health/dental/vision insurance: Some plans are offered at no cost to employees.

·        Life insurance

·        Flexible Spending Accounts/Health Savings Accounts

·        Relocation assistance

·        Retirement plan/401(k)

·        Company car: Employee vehicle lease program offered which absorbs the cost of normal fees and charges associated with a lease.

·        Health club membership: Discounted health club memberships available.

·        Child care: Up to five days of subsidized back-up child (and elder care) provided.

·        PTO/vacation time

·        Sick time

·        Disability income protection

·        Tuition reimbursement/education incentives: Student loan refinancing offered.

Additional benefits

·        Exclusive discounts on travel, apparel, entertainment, childcare, and local merchants.

·        Employee stock purchase plan allows employees to purchase company stock at a discount.

·        Commuter benefits: Free shuttle services and a monthly subsidy to offset commuting costs.

Amazon

·        Paid parental leave

·        Health/dental/vision/prescription drug insurance

·        Life insurance: Basic Life Insurance and Accidental Death and Disability (AD&D) Insurance provided at no cost to employees.

·        Flexible Spending Accounts and Health Savings Accounts

·        Relocation assistance

·        401(k): Matching is open to all part- and full-time employees.

·        Child care: Daycare/nursery school discounts, as well as membership to the Bright Horizons Care Advantage Program, which provides access to a network of over 2 million caregivers, including nannies, babysitters, and special needs caretakers.

·        PTO/vacation time

·        Sick time

·        Disability income protection

·        Paid cell phone: Reimbursement for cell phone expenses provided.

·        Tuition reimbursement/education incentives: The Amazon Career Choice Program provides a resource for associates to build the job skills needed for today's most in-demand careers, such as: Aircraft mechanics, computer-aided design, machine tool technology, medical laboratory science, dental hygiene, and nursing, etc. Amazon pays 95 percent of tuition, textbook, and associated fees, up to $12,000, for four years.

Additional benefits

·        Fertility benefits

·        Adoption assistance

·        Employee Assistance Program

·        Support for learning disabilities: Amazon partners with Rethink Benefits, a program that helps children with autism and other developmental disabilities build the skills they need to reach their fullest potential. Families can access resources and support at no cost, including online resources and up to three hours of live clinical coaching each year.

·        Amazon Extras: An expanded employee discount program offering a variety of discounts in areas like travel, event tickets, restaurants, entertainment, sports, and more.

Intel

·        Paid parental leave: Bonding Leave provides new moms and dads with up to eight weeks of paid time off to bond with their family upon a child's birth, adoption, or foster care placement.

·        Option to work remotely

·        Health/dental/vision insurance: US health benefits also include coverage for an employee's eligible [same-sex] domestic partner and children.

·        Life insurance

·        Flexible Spending Accounts/Health Savings Accounts

·        Relocation assistance

·        Retirement plan/401(k)

·        Health club membership: On-site health and fitness centers at major locations, with fitness classes, weight loss programs, dietary assistance, and more. Also available: The Employee Discount Program that includes health club discounts in cities outside of major US locations.

·        Housing assistance/stipend: For relocation or temporary work assignments only.

·        Child care: Backup child care provided for employees who need to obtain "emergency" childcare when their regular childcare arrangement is not available. The Dependent Care Assistance Program also allows employees to use pre-tax dollars for eligible dependent care expenses for eligible dependent(s).

·        PTO/vacation time

·        Sick time

·        Disability income protection

·        Paid cell phone: For certain business groups and roles.

·        Tuition reimbursement/education incentives: The Tuition Assistance Program provides financial assistance to eligible employees completing a job-related degree program/coursework.

Additional benefits

·        Fertility assistance: Fertility benefits worth $40,000 offered; an additional $20,000 available for prescription coverage.

·        Adoption assistance: The child adoption assistance program covers up to $15,000 per adoption, with no limit on the number of adoptions.

·        Onsite amenities: Many Intel campuses offer additional services: Dry cleaning, banking, spas, healthy meals, café options, and much more.

·        Sabbatical Program: In addition to regular vacation time, a four week sabbatical is offered to employees who have been employed with the company for four years; eight weeks offered after seven years.

·        Stock options: Eligible employees have the opportunity to purchase stock at a discounted rate--up to 10% of eligible pay to buy Intel stock at 15% market value discount.

Dell Technologies (US only)

·        Paid parental leave: Up to 12 weeks, 100% paid leave for birth parents and adoptive or foster parents. Birth mothers also receive short-term disability coverage, up to 20 weeks of time off.

·        Option to work remotely: Yes. Employees also receive an additional one-time stipend to set up a home office, as well as a recurring internet stipend through the Remote Worker Program.

·        Health/dental/vision insurance: Team member cost share.

·        Life insurance

·        Health Savings Accounts: Up to $1,500 contributed annually to HSA accounts for team members who choose the HSA eligible health plan.

·        Relocation assistance: Dollars vary based on the move; guidance/assistance from a third-party vendor included.

·        Retirement plan/401(k): Company match up to 6% of employee contributions (maximum cap of $7,500).

·        Health club membership: Annual family fitness reimbursement of $300 which can be applied to cover membership fees. Employees also receive access to specially trained health coaches to help reduce health risks, at no cost.

·        Housing assistance: Available for eligible team members.

·        Child care: Child care discounts and emergency backup child care provided.

·        PTO/vacation time

·        Sick time

·        Disability income protection

·        Paid cell phone: Eligibility is based on a legitimate business need.

·        Tuition assistance/education incentives: Tuition assistance provided. Also offered: A Dell Merit scholarship for legal dependents and college coaching/guidance.

Additional benefits

·        Pet insurance

·        Maternity program

·        Lactation nurse support

·        Onsite mothers' room

·        Identity theft protection

·        Legal assistance

·        Shutdown week

·        Adoption assistance: $6,000 per adopted child.

·        Paid caregiver leave: Provides up to six weeks paid leave in a 12-month period to care for a family member (spouse or domestic partner, child or parent) with a serious health condition.

·        Commuter benefits: Allows employees to set aside pre-tax dollars through payroll deductions to pay for transit and parking expenses associated with commuting to work. A bicycle program that allows employees to receive up to $20 per month to cover expenses associated with using their bicycle to commute to work is also offered.

IBM

·        Paid parental leave: 20 weeks for mothers; 12 weeks for fathers, adoptive parents and partners.

·        Option to work remotely: In addition to flexible scheduling, employees are able to work remotely when needed.

·        Health/dental/vision insurance

·        Life insurance

·        Flexible Spending Accounts/Health Savings Accounts

·        Relocation assistance

·        401(k)

·        PTO/vacation time

·        Sick time

·        Disability income protection

·        Tuition reimbursement/education incentives

Additional benefits

·        Free breast milk delivery service for moms while they are traveling for business.

·        Free unlimited 1:1 sessions with independent financial consultants for all personal financial needs (IBM MoneySmart).

Reddit

·        Paid parental leave

·        Health/dental/vision insurance

·        Life insurance

·        Flexible Spending Accounts/Health Savings Accounts

·        Relocation assistance

·        Retirement plan/401(k)

·        Health club membership: Available as a choice within a broader Wellness Stipend.

·        Child care stipend

·        PTO/vacation time: Unlimited vacation time.

·        Sick time

·        Disability income protection

·        Paid cell phone

·        Tuition reimbursement/education incentives: The Professional Development stipend can be used for education and tuition reimbursement. A separate program offers monthly student loan contributions.

Additional benefits

·        Commuter benefits

Zillow

·        Paid parental leave: 16 weeks paid leave for delivering parents; eight weeks paid parental leave for non-delivering parents.

·        Option to work remotely: Employees are encouraged to work in the office, but are able to work remotely on a case-by-case basis.

·        Health/dental/vision insurance: 100% of employees' premiums are paid for medical, vision, and dental; and 80% of dependent premiums paid.

·        Life insurance

·        Flexible Spending Accounts/Health Savings Accounts: Both offered. For HSA, the company contribution is $750 for single coverage or $1,500 for family coverage.

·        Relocation assistance

·        Retirement plan/401(k): Company match dollar-for-dollar on the first three percent, and then 50 cents on the dollar on the next four percent and five percent.

·        Health club membership: Employees are eligible for $75 gym membership reimbursement.

·        Child care: Up to 15 days of back-up child care provided per year.

·        PTO/vacation time: Zillow offers generous time-off. Also offered: A six-week sabbatical for employees who have six years of consecutive employment at Zillow Group.

·        Sick time

·        Disability income protection

·        Paid cell phone: Manager pre-approval required.

·        Tuition reimbursement/education incentives: Through the Tuition.io benefit, eligible employees receive $25 per month toward their student loan balance. Tuition.io also offers programs and tools that will help employees manage their student loans, providing everything from information about refinancing options to financial education.

Additional benefits

·        Pet insurance

·        $1,000 "Baby Bucks" for new parents--including adoptive and foster parents

·        Free breast milk shipping

·        Fully-equipped mothers' rooms with hospital grade pumps and fridges

·        Adoption assistance: $10,000 per household towards the expenses related to the adoption of a child.

·        Fertility services: Services and treatments subject to eligibility.

·        Bereavement leave: Employees are eligible to take 20 paid days of leave following the death of a close family member, and five days of paid leave for extended family members.

·        Equity Choice: Employees receive company stock as part of their total compensation. Employees can choose how to receive their stock-in the form of restricted stock units (RSUs), stock options, or a combination of the two in 25 percent increments.

Airbnb

·        Paid parental leave

·        Health/dental/vision insurance

·        Life insurance

·        Flexible Spending Accounts/Health Savings Accounts

·        Relocation assistance

·        Retirement plan/401(k)

·        Health club membership: Wide range of discounts at health clubs, yoga studios, dance studios, and more.

·        Housing assistance: For relocation purposes.

·        PTO/vacation time

·        Sick time

·        Disability income protection

·        Paid cell phone: For work purposes.

·        Tuition reimbursement/education incentives: May be granted by managers on a case-by-case basis.

Additional benefits

·        Employee Assistance Plan

·        Adoption and surrogacy financial support

·        Fertility benefits

·        Back up child and elder care

·        One Medical Membership

·        Emergency medical assistance while traveling abroad.

9. Reference

Reward & Employee Benefits Association

IBEA: The International European Benefits Association

BROWN, D. (2014) The future of reward management: from total reward strategies to smart rewards. Compensation and Benefits Review. Vol 46, No 3, May/June. pp147-151.

FARRAND, L. (2016) Put the scores up on the board: a total reward strategy will enable employees to see the full value of their package. Employee Benefits. May. pp18-19.

JACOBS, E. (2014) Reward strategy and practice. Journal of Compensation and Benefits. Vol 30, No 1. pp33-37.

KUCZMARSKI, S. and KUCZMARSKI, T. (2019) How rewards fuel or fail innovation. Strategic HR Review. Vol 18, No 1. pp8-1

https://www.techrepublic.com/article/12-tech-companies-with-impressive-benefits/

https://www.cnbc.com/2019/10/07/comparably-top-100-companies-with-best-compensation-2019.html

https://www.hrtechnologist.com/articles/digital-transformation/3-ways-ai-will-impact-employee-rewards-and-recognition/#

https://www.hrtechnologist.com/articles/rewards-and-recognition/9-reasons--you-need-rewards-and-recognition-tech/?zd_source=hrt&zd_campaign=3537&zd_term=prarthanaghosh#

https://www.helioshr.com/2013/11/what-makes-up-a-great-total-rewards-package/