26th April, 2013

Mumbai

STUDY ON REWARDS AND RECOGNITION

KEY INFERENCES

The Study 2013

Findings on Rewards

Findings on Recognition

Busting some Myths

1

3

4

5

Key Issues in R&R 2

Looking Ahead… 6

Flow

2

Create awareness

Celebrate the Best

Ensure industry learning

Objectives of the Study – Year II

3

Study Participation

4

Construction, Infrastructure & Real Estate, 4%

Hospitality, 4%

Telecommunciations, 4%

Health Care, 5%

Professional Services, 5%

Manufacturing & Production, 15%

Financial Services &

Insurance, 16%

Information Technology,

33%

Other, 13%

Industries covered …

5

Detailed submission of R&R programs & data

Employee Perception People Practices in R&R

Methodology

10

relevant

stateme

nts

6

Key Issues in Rewards & Recognition

7

What differentiates the Best from

the Rest?

Do they pay

more? No….

Our research shows that the

average salaries across levels

are only 2% higher for the Best

Companies

Rewards

8

Once a threshold point is reached, internal equity is more effective than quantum of pay.

CEOs

OF

THE

BEST

CEOs

OF

THE

REST

Fresh

MBA

18 times

Fresh

MBA

26 times

Fresh

Graduate

26 times

Fresh

Graduate

46 times

Internal Equity

9

87% of the Best

25% of the Rest

The Best are more inclined to track

anomalies in compensation and to change

them

Managing compensation anomalies

10

A significantly higher percentage of the Top 15 give

incentives to non-sales and non-operations personnel.

87%

35%

BEST REST

Distribution of Rewards

11

The Best in Rewards and Recognition

rely on significantly higher variable

pay, with higher differentiation.

12%

Average of maximum

increments are higher in

the Best companies from

supervisory to senior

management levels

Variable Pay as a differentiator

12

BEST

REST

26%

13%

BEST REST

Stock Options across levels

13

Recognition

14

Are frequency and

inclusiveness the biggest

drivers?

Variety

Frequency

Parameters

BEST REST

80

%

55

%

73

%

18

%

53

%

13

%

The Best Companies do more…

15

87% 87% 87% 80%

40%

67%

13%

27%

7%

63%

53% 58%

50%

20% 22%

5%

18%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Se

nio

r M

an

ag

em

en

t

He

ad

of D

ep

art

me

nt

Imm

ed

iate

Su

perv

iso

r

Pe

ers

/Te

am

Me

mb

ers

Ju

nio

rs

Oth

er

De

pa

rme

nts

Ind

ustr

y, a

sso

cia

tio

np

ee

rs

Clie

nts

/Cu

sto

me

rs

Ve

ndo

rs/ B

usin

ess

Pa

rtn

ers

Top 15 in Rewards and Recognition Other Organizations.

BEST REST

Inclusiveness in recognition

16

The best involve a significantly

higher number of stakeholders in

recognition

In Summary

17

Once a threshold point is reached, internal equity and distribution is more effective than only quantum of pay.

Greater variety, frequency and inclusiveness creates significantly higher impact in recognition

Rewards

Recognition

– It needs a lot of financial investment!

– There is a limit to how much recognition is required!

– It takes up too much senior management time!

Busting some Myths

18

Looking Ahead

Family involvement

Personalization of recognition programs

and Giftwork®

Extent of participation and feedback

Recognition for finding new performance

levels or innovation

19