How to write a reward policy: fair, clear and sustainable

When the reward policy is vague, employees find decisions arbitrary; when it is too generous, the scheme can't last. A good policy is short, written and where everyone can read it.

What the policy should cover

• Which records qualify: an implemented suggestion, a completed Kaizen and so on.
• Who decides: the committee, the unit owner, or different people by amount.
• How the amount is calculated: a share of validated gain, fixed tiers, or both.
• Sharing in team suggestions.
• Contributions that are thanked but not rewarded.

Tying rewards to validated rather than estimated gain prevents decisions that are hard to reverse later.

Keep it apart from points

Points and badges that make participation visible should be kept apart from rewards. Points recognise every contribution; rewards depend on a decision and a gain. Mixing them multiplies low-value records.