Employee recognition programs, the saga continues.
It seems never-ending. Companies are in a perpetual loop of either trying to fine-tune their existing employee recognition program, or launching a new employee recognition program. Yet it wasn't that long ago that employee incentive programs simply consisted of paid vacation days and health benefits. In today's highly competitive talent pool, those "incentives" are just table stakes. Employees and potential employees are looking for organizations that will provide them with more than just the basics.
One of the challenges for HR organizations is typically budget - getting any and/or getting enough. It can be easy for the CXOs at a company to view employee recognition as pure cost. Here's the reality.
- Low employee engagement levels stem from employees feeling undervalued.
- When employees are disengaged, they perform poorly and are more likely to leave their jobs, which hurts the company.
- When employees feel valued, they perform better and are more likely to stay at their jobs.
- Organizations with more engaged employees perform better in terms of sales, customer satisfaction, and overall profitability.
How much money should be spent on employee recognition?
Let's look at it this way. Employees want rewards and incentives that make them feel valued, and they won’t feel valued if the organization’s idea of a reward is whatever it could get in bulk at a discount this month. Organizations have to put some thought into their rewards in order to make them meaningful – and meaningful rewards cost money. From a budget planning standpoint, consider around 2% of salary. It could be that you don't have that type of budget and will want to design a program around thank you's and get together's. That's okay, but if you want a points-based, incentive earning program, correctly budgeting is important.
In the current economic climate, where the majority of employees are not engaged, employee rewards and recognition programs matter more than ever. A strong employee recognition program can be the difference between major organizational success and company-wide failure. With the right employee recognition program in place, an organization can boost profitability, productivity, employee performance, and retention rates. Customers will be more satisfied, the sales team will thrive, and the organization overall will enjoy a competitive advantage over the rest of the industry. However, employee recognition programs are notoriously difficult to implement. The good news is they don’t have to be. The right employee recognition partner should help organizations overcome the challenges of employee recognition while also affording them the benefits of high employee engagement.
Want more information? Check out our resource Employee Recognition: Best Bet for Your Bottom Line or wander over to the Perks | Employee Resource library for even more information.
About the Author
Engaging employees of various backgrounds, interests, and generations may seem next to impossible. As an employer you want to reward your workers on an individual and meaningful level for reaching business goals, but may not have the time or knowledge to do so. If your organization is suffering in the areas of: retention, attracting new talent, low satisfaction, or safety issues among others, consider partnering with Perks. By pairing our Science of Motivation™ methodology with your unique business needs, our incentive programs have a proven track record of strengthening all areas of employee engagement, most importantly: productivity and ROI. Our programs provide unique employee engagement solutions by rewarding workers based on performance. Whether rewarding an employee for going above and beyond, referring new talent, or taking the necessary steps to prevent workplace accidents, Perks will work with you to design the ultimate incentive program to meet your needs.More Content by Perks WW Employee