1.1.1 Reward: One-time cash or non-cash award for significant outstanding Performance

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1 1.0 Policy Statement This policy is intended to provide guidelines on how to reward and recognize staff who demonstrate best performance and show strong attitude for continuous improvement. 1.1 Key Definitions Reward: One-time cash or non-cash award for significant outstanding Performance Award: An honor, decoration, prize to be given to the individual/team. This Has no monetary reward attached. 2.0 Objectives The objective of this scheme will be to; Entrench a performance reward corporate culture and policy within all Kenya Power`s operations. Reinforce, motivate and reward staff on best ways of living and demonstrating the corporate values of Customer first, One team, Passion, Excellence and Integrity. Inculcate customer service excellence attitude, behavior and passion among staff. 3.0 Scope The scheme will apply to all staff levels within the company i.e. individuals and work groups/ work teams; both permanent and contract staff. Kenya Power Reward & Recognition policy Page 1

2 4.0 Guiding Principles Rewards will be given for significant outstanding performance (performance rating of 4 and above) to staff that will demonstrate excellence and outstanding performance. Care will be taken in communicating and distributing rewards so that they are not viewed as entitlements. The rewards will not be an adjustment to base salary or supplemental compensation. 5.0 Policy 5.1 Award Specification There will be individual as well as group awards. Employees will be nominated on a quarterly basis to get into the Kenya Power wall of fame Divisions through their General Managers will be required to nominate staff on a quarterly basis which will act as a build up for the annual staff awards program. 5.2 Quarterly nominations Staff will be appreciated and recognized during the quarterly staff communication. The staff will be awarded a recognition certificate which will be handed over officially by the MD & CEO or the Division`s General Manager. Key staff award categories will include: 1) Best person/team in Customer Service 2) Best person/team in Network/Feeder Management 3) Best person/team in Infrastructure Development 4) Best person/team in Finance 5) Best person/team in ICT 6) Best person/team in Supply Chain 7) Best person/team in Corporate Affairs 8) Best person/team in HR & Admin Kenya Power Reward & Recognition policy Page 2

3 9) Best internal Auditor/team 10) Best person/team in Business Strategy 11) Best person/team in Innovation (creative and innovative idea) 12) Best Employee living the Kenya Power Values nominations must be supported by demonstrable evidence 13) Best Performing County / Branch (annual) 14) Most improved County / Branch (annual) 15) Best Performing Region (annual) in connectivity, customer base, sales, outages/ breakdowns 16) Best voted department in provision of internal customer service (annual) 5.3 Employee of the Year nominations (divisional) This will be an overall staff award per division, of the staff best performing as specified in the twelve (individual) categories above. To qualify for the annual nominations one must have been a winner in the previous quarterly awards/rewards, among the specified twelve (12) categories. All divisions will be eligible to select an award winner in any of the categories as soon as they are identified. 5.4 Overall Employee of the Year (Companywide) There will be a companywide annual overall Employee of the year recognition Reward (i.e. with monetary benefit or holiday package for staff and spouse to an agreed destination) of the most outstanding of the twelve listed individual categories above. 6.0 The Nomination Process Every member of staff is free to nominate a colleague or themselves for recognition/award within his/her division or across divisions. The process to follow is; Complete a nomination form (as per the attached form) In the form indicate which category of award/reward you are nominating your colleague or yourself for Explain what the nominated staff has done to deserve the nomination and must give specific example Submit the form to the local champion/human Resource Kenya Power Reward & Recognition policy Page 3

4 To ensure transparency and enhance departmental participation the following have been put in place:- All champions/regional HR Officers will assist in collecting the nominations from their divisions/regions. Standard parameters against each nominees will be evaluated HR will set up a panel to review and validate all the divisional nominations in line with the set criteria and confirm the winners in each category. Head of divisions to nominate their winners and give reasons for the same by completing the forms and submitting to Human Resource. HR will set up a panel made up of the divisional champions to determine the overall employee of the year winner 6.1 Best Innovations Best innovations will be Kenya Power`s Employee Suggestion Programme to tap into the staff s creativity, innovation and knowledge base for the organization s business growth and development and improve company operations. This initiative will facilitate and foster employee participation in thinking and generating new ideas, encourage positive morale, creativity and innovation among staff as well as creating quality and efficient products and services. 6.2 Benefits of Innovations Increase connectivity Improve quality of power Save costs Grow revenue Improve customer service Improve quality and efficiency in processes Enhance Kenya Power`s Corporate image Kenya Power Reward & Recognition policy Page 4

5 6.3 Process Step 1 Employee comes up with an idea Step 2 Employee fills out Innovative Ideas Form or writes a paper on the innovation Step 3 Step 4 Step 5 Step 6 Employee sends the Form or paper to the Reward and Recognition Committee R&R Committee reviews Form and assesses viability of the idea and its creativity, originality and initiative of the employee and sends it to the appropriate Department Heads The Divisional head will form a commitee consisting of Departmental heads to evaluate the innovation on relevancy to the business process, impact on company operations and cost of implementation The best ideas selected will be presented to Management Committee meeting, by the employee generating the idea Step 7 Approval and Implementation 6.4 Reward System The employees with the selected innovative idea(s) will be rewarded and recognized by the MD & CEO on a monthly basis, and receive a certificate of recognition. All ideas should be submitted by the 25 th of every month. Winning innovations will also be feted during the quarterly awards. Kenya Power Reward & Recognition policy Page 5

6 Innovative Ideas Form is attached as Appendix II 7.0 Key Policy Implementers 7.1 Heads of Divisions They will be in charge of the staff quarterly divisional nominations in the various award categories. These will be coordinated via the divisional meetings. HR will ensure the nominations are submitted 2 weeks before the quarterly staff communication i.e. March, June, September and December nominations. 7.2 Heads of Departments They will be in charge of reviewing the innovative ideas relevant to their departments and assess the viability of the ideas. They will then co-ordinate with the employee generating the idea for the purpose of presentation to the management committee 7.3 Reward and Recognition Committee This committee will be set up, coordinated and chaired by the General Manager, HR & Admin. The committee will be selecting and evaluating nominees and will present the winners. HR will send timely prompts to all staff on the quarterly award selection exercises. The awards will assist to create some excitement and competition in the divisions for the benefit of the company. 7.4 Champions The divisional champions will represent the various divisions in the Reward and Recognition Committee and will also assist in collecting nominations from their divisions. The champions will be appointed by the General Manager, HR & Admin and the specific names of the respective divisional champions will be communicated via a memo. The regional HR officers will be responsible for collecting nominations in their regions. Note; Management reserves the right to change/amend this policy. (nomination forms to be included below). Kenya Power Reward & Recognition policy Page 6

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