When you’re trying to build a healthier workplace culture and improve retention, an employee recognition program may be the answer. You’ll be able to honor your best employees and encourage greater productivity. And, best of all, you won’t necessarily have to spend a fortune to do it. Even if you’re a smaller organization, you can map out an effective program.
Keep reading as we explore how to budget an employee recognition program that boosts engagement.
Decide What You Want Your Program to Accomplish
Before purchasing gifts or sending any memos, start by determining your goals with a recognition program. Maybe you’re hoping to spotlight high-achieving teams or individuals. Or perhaps you want to see better retention. Ultimately, what you want to achieve will impact your budget. And sticking with a budget can avoid financial surprises.
Honoring long-serving employees would mean investing in milestone gifts. These could be more significant costs that occur frequently, depending on the size of your organization. On the other hand, smaller gifts would be more appropriate for more frequent forms of recognition. This could entail honoring teams that have achieved sales goals and individual promotions. These awards may be given out quarterly or at annual holiday parties.
Choose the Right Gifts
Spend time looking for gifts that fit within your budget. Strike a balance between cost and appeal, and consider buying some gifts in bulk. You’ll trim even more off your costs if you don’t mind giving lots of employees identical gifts.
Look online for custom business gift options. Awards can be an excellent choice when you’re seeking a gift with enduring power. A customized engraving with the award recipient’s name can give weight to their achievement. Awards can also look impressive on an office desk or bookshelf as a public display of the recipient’s value to the organization.
Create a Clear Budget
Even though different gifts will require different levels of spending, it’s smart to determine a per-employee average. That way, you can avoid overspending. You may choose an initial target of around $100, for instance, and go from there. Tally up your total number of employees and multiply that number by the anticipated cost per employee. You’ll end up with an upper limit for your budget.
Make sure you have policies in place for award spending, as well. For example, understand who can receive different types of awards. Determine the frequency for giving awards. And if you do want to offer a more expensive award, create a process to receive approval for the purchase. You’ll build more accountability and keep your recognition program healthy. You can also review your program each year to see if your current budget and criteria are helping achieve better outcomes at work.
You can also review your program each year to see if your current budget and criteria are helping achieve better outcomes at work. In addition, it’s useful to check your website’s rank to measure the broader impact of staff engagement initiatives on your company’s online presence or visibility.
Build an Effective Recognition Program
An employee recognition program can be a game-changer for your organization. Just be sure to set a clear budget and know your goals for the program. Check to see if it’s producing a healthier culture through better engagement and retention, too. With the right approach, your program can lay the foundation for a vibrant workforce.
