In the Innovative employee reward system the features varies from industry to industry. But the common features are
1.Performance appraisal system : Components of performance appraisal systems are directly related with reward system. Permonace appraisal system is not only a direct projector of performance by an individual during the year but accounts for so many other parameters such as Leadership Qualities
Communication
Personal Appearance( Ways of Dressing up)
Absenteeism
Health concisiousness
Relationship with pears.
System adoption and understanding the systems.
Self Motivation.
You can highlight combination of above parameters with individual performance and evolve a system of rewarding the employee. A self motivated employee with good personal Appearance and low absenteeism rate can be rewarded for these parameters.
2.Company commitment : You make number of combinations but if management commitment is not there , then innovative systems will never come into existence. In fact it is commitment of company / management to promote innovative ways. These ways are to be critically evaluated before implementation. Business simulations if available may be tried to work out the nearest possible results. SWOT analysis is required to be done very carefully to visualize the impact of reward. For real good innovation again if commitment to promote the same is there only then implementation will succeed else results may differ.
3. Minimising the Bias factor : Bias factor is a stigma on innovative practices. You can not eliminate this but by minimising the bias factor , one can achieve the objective of innovative system.
4. Availability of resources : For implementation of any system one has to have resources for the same. e.g you want to pay Rs.5000.00 as one time reward to an employee for his low Absenteeism rate, you should have resources to pay that. If resources are not available the morale which you want to improve will not be as much possible as you desire to be.
I think the above are brief factors which for establishing a good compensation system , so many other factors are there but since i am not aware of your type of industry I can n't comment on these.
Pls. let me know your industry background to think further.
eace:
