Seeking Advice: What Key Points Should I Present for Our E-commerce Reward Policy?

I have recently joined an E-commerce company. I now have to present the reward policy to the MD. If I could get some interesting points from experienced and senior personnel, that would be very helpful.

Rewards are given on two counts. One is outstanding performance, and the second is doing something innovative on one's own. As far as the former is concerned, how do you quantify the performance? Unless you measure the performance, it will not be possible to compare one employee's performance with another. When it comes to doing something, it could be related to process improvement, cost reduction, customer delight, etc.

Therefore, please provide me with a little more information about your company. Above all, when measuring performance, do you measure what deserves to be measured? I ask this question because many times employees are rewarded; however, certain vital business performances are never measured. Therefore, rewarding employees should not come at the expense of the organization. This could be the essence of your policy.

Thanks,

Dinesh Divekar

Thank you, Sir,

We belong to the e-commerce industry dealing with loyalty business. We are a startup company with an employee strength of 20. Currently, we are in the process of creating a new HR policy. I would like some input from all of you to make the policy easy and innovative.

If you are a startup e-commerce company, your focus should be on the measurement of ratios related to warehouse and inventory management. Please do not forget that when Big Bazaar started, they relied on bringing economies of scale. However, beyond a point, the bargaining power resulting from volume does not matter. What matters is inventory analysis or demand analysis. Big Bazaar incurred losses because of this. Therefore, the challenge to you is not to repeat the mistakes of Big Bazaar.

As far as e-commerce companies are concerned, many of them have shut shop even before they could take off properly. Therefore, employee rewards are fine, but the parameters on which those rewards are based matter most. For further queries, feel free to contact me.

Thanks,
Dinesh Divekar

The Importance of a Well-Defined Reward Policy

A reward policy is essential for keeping employees motivated and ensuring they perform at their best. However, the criteria for rewards must be carefully analyzed and proven. This ensures that the policy is not merely a cost to the company but is focused on achieving long-term gains.

We observe that organizations today are keen on attracting talented and high-performing employees. However, job hopping has increased due to the overconfidence and ego of these employees. In such circumstances, the advice given by Mr. Dinesh Divekarji is invaluable. Rewards are beneficial, but the parameters on which they are based are what truly matter.

Regards

Implementing Recognition and Reward (RnR) Practices

RnR is a good practice to keep employees motivated. You can introduce the RnR practice to your MD in many ways:

1. You can set a monthly RnR practice to tag the employee with the title of "Best Performer of the Month" or "Employee of the Month." Arrange a trophy for internal use (officially) and give it to the monthly performer for the whole month so that he/she can place this trophy in their sitting area until the announcement of the next performer of the month.

2. Arrange a notice board at a point of maximum visibility and analyze the performance and work activity of all employees. Choose the top 5 employees with their ranking and place their names with pictures on the notice board. You can arrange a tea-snacks party and a motivational speech by the MD to announce the top 5 employees of the month.

3. You can arrange the RnR on a quarterly basis to track and analyze the work record and performance of employees for the last three months and then choose the employees of the quarter.

4. Set a particular day, like the last Wednesday or Friday of the month, or as your company accords, to celebrate birthdays, anniversaries, and RnR. To celebrate this day, you can arrange a cake, some snacks, lunch, and a good motivational speech by the MD, Managers, TL, or even any of the employees who want to share their views on the company's growth.

If you don’t want to spend on tea-snacks or lunch, you can invite all your employees for a potluck lunch. Ask all employees to bring lunch from their homes and share it in one place with all the company staff, including top management. It creates a positive connection between employees and management.

Thanks,

Rani

Manager - Human Resource, IT Company