Flexible reward and recognition (R&R) is the practice of adapting awards to diverse employee preferences and motivations, ensuring inclusivity and effectiveness. Future-proof Organizations seek real-time recognition, flexible benefits & prioritizing employee experience. Personalized rewards, peer-to-peer recognition programs, flexible scheduling of rewards & non-monetary incentives like extra time off are effective ways to achieve this.
In an insightful interaction with AdvantageClub.ai, Jaspreet Bakshi, Partner & India HR Leader, Marsh McLennan, shared his thoughts on flexible benefits and the power to choose your rewards. He also highlighted how employee experience has become the center of the workplace. Read the detailed interview below.
Could you share your assessment of the employee experience and rewards and recognition segment in the year 2023? What were some of the notable highlights?
One thing that has really changed progressively post-pandemic is that employee experiences come at the center of what we do. Earlier, it was a lot about processes, but today, experience is what really defines what we’re doing for customers. We have to use the same lens internally, which means the whole proposition with respect to what’s the work, what’s the workplace, the nature of colleagues, the support provided, all that gets very critical.
Another evolving trend was that a lot of companies have refreshed the employee value proposition of providing flexible benefits to the families and, lately to the household help of the employees.
What are the significant factors that will influence employee recognition in the year 2024?
Most companies will move away from a yearly recognition reward cycle; it’s becoming real-time. One year is a very long period, and then people forget. Second, the goals will be broken down into concrete objectives and instant feedback and output.
Also, If an argument comes about an employee not doing well, the expectation is that the employee will put in the effort to learn. Today, you get a question asking if I’m not doing well, what will you do to enable me to do it?
What’s an appropriate amount for companies to spend on employee recognition per employee annually, considering their overall strategy and fairness for all employees?
There is an overlap in the whole element of perks, benefits, and rewards. Quantifying a number will be difficult. But different companies do this in multiple ways, and you cannot broad-brush a reward philosophy or recognition across the board because some functions are doing more, so they likely should get better perks. For example, a salesperson will get more incentives than the HR function.
But the trend has also extended, and instead of monetary rewards, organizations are sponsoring courses. So, as a substitute, they are creating a portfolio of reward mechanisms, which can include money and some parts of R&R and learning.
What role will employee wellness play in the design of future rewards and recognition programs?
Post-pandemic, the entire concept of well-being has really picked up; it was important earlier, but it used to get ignored when work was more important, and everything else took a back seat. Today, the context is changed, and employees are more aware of doing a meaningful job, getting recognized without compromising their physical or mental health.
Even most companies are designing strategies keeping all those elements in mind where they can focus on health and wellness.
What steps can organizations take to ensure their rewards and recognition programs stay relevant and effective in a rapidly changing business landscape?
Companies have realized that the yearly employee survey to check the pulse is no longer relevant because if a colleague is unhappy, they will not wait for one year to tell, and they will leave, or you will see a dip in performance. The same concept applies to rewards and recognition, and you have to do R&R in real-time and design your R&R philosophy that should appeal to everyone.
Organizations need to work hard to make R&R more appealing, real-time, and flexible and give the option to choose your reward. For example, during Diwali, we gave our employees eighteen options to choose from rather than a box of sweets. We understood that different colleagues have different needs, and the feedback was overwhelmingly positive.
