>> Apr 5, 2017
We All Need a Pat on the Back for Something Good
Recognizing an employee’s efforts, be it in the form of tangible, intangible, formal or informal rewards or acknowledgment has a direct impact on the employee’s productivity and morale. All humans crave appreciation. When these humans work in organization to help it achieve it goals, they wish that they be valued for any effort that results in its success and prosperity.
Employee reward and recognition schemes help employees feel a treasured part of the organization. This results in job satisfaction and increases their motivation to continue doing good work and achieve higher milestones the next time. Any good organization understands the value of such programs. Their manager’s understand that when recognized as an individual or as part of a team, employees are going to feel emotionally satisfied as an employee’s wellbeing is number 1 priority of many UK businesses today.
Why Measure Success of Such Schemes?
But just because such reward and recognition schemes promise greater benefits theoretically, do the employer’s efforts really pay off? Suppose an organization has 100 employees working under them. Annually, the company spends an average of £100 to £150 on each employee on awards and £50 to £70 on administrative costs per employee. All that accumulates for £15000+ of company’s money spent on the workforce. Any SME investing that kind of money deserves to receive a greater ROI. If it isn’t reaping results of the same magnitude if not more, soon such schemes will be the first thing a CEO will chop down from the budget. Therefore, it is essential to know what benefits such programs will bring for both the employee and the employer. This requires for measuring the success of such reward and recognition schemes. How can one do so? Read on to find out.
How to Measure ROI of an Employee Reward and Recognition Program?
There are two reasons to measure the success of any employee reward and recognition program. First, it allows companies to access if both rewards and recognition are distributed in an equitable and fair manner. Secondly, it allows companies to know how valued do employees feel when bestowed with words of appreciation and bonuses. Measurement of benefits will also help the company evaluate the per-employee cost and whether such programs should be continued or not.
Primary Data Analysis
To decide whether they should continue or not, employers can rely on the use of primary data collections in the form of surveys, questionnaires, focus groups and polls. These will reveal:
· Employee’s level of engagement
· Improved knowledge of company’s goals and objectives
· Reduction in absenteeism
· Employee’s willingness to put forward an idea etc.
Systematic Data analysis:
Systematic data will help employers evaluate all that primary data failed to reveal such as:
· Has the employee reward and recognition program improved relationships between the employees and employer?
· Has the thank you culture promoted goodwill and sense of team work among employees?
· Has it driven positive behaviour to work harder and help the recognition achieve its goals and objectives?