Employee Reward and Recognition System

Pamela Billings, Heather Camp, Sandra Farneti, DeAnna Francisco, Stephanie Hawley, Renita Holmes,

E. Nwanna, Inez Rodriquez

The University of Alabama

Objectives

• Define performance evaluation process• Define compensation process• Discuss the Reward and Recognition Design• Describe the concept of mediocre performance rating• Discuss alternative reward and recognition programs

including nonmonetary rewards,

• Describe the use of surveys to evaluate patient and employee satisfaction

• Analyze the effectiveness of performance evaluation

Introduction

• Nurses, for many years, have paved a road for what they believe is right. Hospitals have noticed retention, career ladders and an incentive prevent turnovers while increasing staffing satisfaction. Retention for hospitals to maintain trained nurses have become a focus for many Chief Executive Officers (CEO). Training and hiring nurses within the hospital has become very costly for many institutions. It costs approximately ten thousand and sixty four thousand dollars to train newly hired nurses. This cost is noted from high turnovers, cost of orientation, and decreased productivity (Wieck, 2009).

Retention and job satisfaction has become important aspects for nurses and hospitals to evaluate when posting and applying for new careers within facilities. Many facilities are identifying benefits that will interest and retain employees such as: career ladders with pay incentives, preferred scheduling and more choices with benefit options.

Introduction

• An effective performance evaluation system must evaluate the work being done without causing job dissatisfaction for the staff.

• The system must also provide fair, honest, objective feedback to the staff while avoiding invading the privacy rights of the person being evaluated.

(George & Haag-Heitman, 2011)

Overview of Performance Evaluation Process

• Defines performance evaluation

Performance Evaluation

• Performance evaluation is a valuable tool for an organization. Evaluations are a “motivational tool for managers to communicate expectations and provide feedback” (Smith, Gunzenhauser, & Fielding, 2010)

• Evaluations should be constructive, provide feedback on performance and allow opportunities to highlight actions that support the organization. (Smith, Gunzenhauser, & Fielding, 2010)

Performance Evaluation

Measuring performance• Most performance evaluation systems use a scale with

numbers or words that measure success. • For example, performance may be ranked from 1 to 5,

with 5 being exemplary, or by using words from “exemplary” to “does not meet.”

• The measures should be clearly defined so they can be assigned consistently.

• The scores for each criterion on the evaluation are then multiplied by the weight and added to determine a total score. The form also has an area for feedback for each job function and behavioral aspect being evaluated.

Performance Evaluation

Performance Evaluation

Three Components

• Peer Evaluation

• Self-Evaluation

• Manager Evaluation

• Combined input to determine total points

Performance Evaluation

Peer Evaluation

• One of the essential components of professional nursing practice

• Ensures the quality and safety of both the care provided and the care provider.

• Implies that the nursing care delivered by a group of nurses or an individual nurse is evaluated by individuals of the same rank or standing

(George & Haag-Heitman, 2011).

Performance Evaluation

Self-Evaluation

• Self-assessment is part of a good evaluation system.

• Staff members feel more involved in the assessment process if their input into their own work style is sought and included in the evaluation

(Shaneberger, 2008)

Reward and Recognition System Design

Manager Evaluation

• The manager compiles all of the information about the staff member being evaluated

• Information comes from the self-evaluation, peer evaluations, and from the manager’s performance log

• Performance is shared face-to-face

Overview of Compensation Process

• Create a compensation system that recognizes the multiplicity of employee values and needs.

• The system should support retention and guide employees to new opportunities when:– Organization’s needs change– Required job skills change– Employees’ desires change.

Porter-O’Grady & Malloch (2011)

Overview of Compensation Process

• Become a partner with employees in managing their works & planning for the next position.

• Be vigilant & persistent when implementing and maintaining an compensation system and recognition & reward program.

Porter-O’Grady & Malloch (2011

Overview of Compensation Process

• Stay focused and committed despite resistance from those who would like the current compensation system & recognition & reward program to remain the same.

Porter-O-Grady & Malloch (2011)

Reward and Recognition System Design

Three key components of the new pay system

• Simplified coverage • Agreed job descriptions and job evaluation

• Knowledge and Skills Framework (KSF) – (career development framework)

Reward and Recognition System Design

Mediocre Performance Rating

• Awards nothing to employees who have a mediocre performance rating.

Use this as an opportunity to counsel employees and set goals for improvement

Reward and Recognition System Design

• Includes monetary and nonmonetary rewards

Reward and Recognition System Design

Monetary Rewards• Paid to employees based on their commendable

job performance • Essentially involve in the form of money

• Include salary increases, profit sharing, stock options and warrants, project bonuses, festival and/or performance linked scheduled bonuses, and additional paid vacation time

(Kyani, Akhtar, & Haroon, 2011)

Non-Monetary Incentives

The purpose of non-monetary incentives is to reward associates for excellent job performance through opportunities (Ballentine, McKenzie, Wysocki & Kepner (2003).

• Relocation expenses• Tuition reimbursement• Flexible work hours• Free coffee

• Pleasant work environment

• Training opportunities• Assistance with childcare

expenses• Free parking

o Employee discount programs

• Phone service• Personal computers • Theme parks• Movie tickets• Meal discounts

Common Recognized acts:

• Length of service

• going above and beyond regular work,

• boosting the financial bottom line• Exemplary behavior that aligns to the

organizational values,

• high quality work or results,

• faster completion of regular work projects

(HR Focus, 2012)

Keys to Recognition Program Success

• Support from Senior management

• Clearly defined goals and objectives

• Consistent promotion and communication to employees

• Appropriate incentives and rewards based on employee demographics

• Up to date information on industry trends and non-cash award tax laws and regulations (Leibow, 2010)

Measuring Reward and Recognition Systems: Key Performance Indicators

• Aligned with companies:– Mission– Vision

– Values– Corporate strategy

• Employee satisfaction:– Ensure there are specific questions related to

rewards and recognition as part of employee satisfaction survey.

(HR Focus, 2012)

Conclusion

References

• American Nurses Association (1988). Peer Review Guidelines. American Nurses Association, Kansas City, MO.

• Ballentine, A., McKenzie, N., Wysocki, A. & Kepner, K. (2003).The Role of Monetary and Non-Monetary Incentives in the Workplace as Influenced by Career Stage. Retrieved from http://edis.ifas.ufl.edu.

• Edwards, Marc T. & Benjamin, Evan M. (2009). The Process of Peer Review in the U.S. Hospitals. Journal of Clinical Outcomes Management, 16(10), 461-467.

• George, V. & Haag-Heitman, B. (2011). Nursing peer review: the manager's role. Journal of Nursing Management, 19(2), 254-259

• Kyani, A., Akhtar, S. & Haroon, M. (2011). Impact Of Monetary Rewards On Achievement Of Employee's Personal Goals. Review of Management Innovation & Creativity, 4(10),58-69.

• Nelson, B. (1994). 1001 Ways to Reward Employees. New York: Workman Publishing.

References

• Porter-O’Grady, T. & Malloch K. (2011). Quantum leadership: Advancing innovation, transforming healthcare. (3rd ed. Pp. 448-449). Sudbury, MA: Jones & Bartlett

• Shaneberger K. (2008). Staff evaluations: more than a formality. OR Manager, 24 (10), 24, 2.

• Smith, Kathleen N., Gunzenhauser, Jeffrey D., & Fielding, Jonathan E. (2010).

• Reinvigorating Performance Evaluation: First Steps in a Local Health

Department. Public Health Nursing, 27(5), 425-432.• What Reward, Recognition Program Awards Are the Most Valuable? . (2012). HR

Focus, pS1-S4, 4p.