Let’s talk ROI. Everyone’s obsessed with numbers these days, right? Well, it’s no different with employee recognition. To get the most bang for your buck, you need to measure its impact.
By understanding the numbers, you can prove that showing appreciation isn’t just a nice thing to do—it’s a smart business move.
In this post, we explore the ROI of employee recognition, and then we’ll tell you how our ROI calculator works and how to leverage its data to optimize your rewards and recognition program.
Awardco’s ROI Calculator: Your Secret Weapon
Yes, the benefits of rewarding your employees are fantastic—but let’s talk practicalities. Implementing a successful employee recognition program requires careful planning and execution.
This is where Awardco’s ROI calculator becomes your secret weapon.
By using our tool, you can:
- Gain a clear understanding of your program’s financial impact
- Make data-driven decisions to optimize your budget
- Demonstrate the value of recognition to stakeholders
How to Use Awardco’s ROI Calculator
Using Awardco’s ROI calculator involves just four easy steps:
- Gather your current data. This includes your employee headcount, average employee salary, and average turnover rate.
- Click “Get Started” and input the data into the calculator fields. The tool will walk you through the data fields step by step.
- Review the calculated ROI and analyze the results. The total annual ROI of employee recognition will be noted at the top. As you scroll down, you’ll see ROI numbers based on three factors: retention, productivity, and absenteeism (more on this in a bit!).
- Adjust parameters to reflect various scenarios. You can return to the calculator process's beginning to punch in different figures and explore other scenarios. This can be a great way to gauge how ROI will shift as your business scales.
- Download a PDF (optional). You have an option to download a PDF of your results to share with your team.
Interpreting the Calculator’s Results
After inputting all of your data, the calculator will provide results that look something like this:
At the very top, you’ll see the annual ROI you can earn by partnering with a rewards and recognition platform like Awardco. Leaning on a recognition platform helps HR leaders streamline and enhance their recognition strategy to help employees feel more valued.
This in turn translates to value for a company in three main ways: higher retention, increased productivity, and lower absenteeism.
The calculator highlights these three areas, showing the ROI you can earn in each through a quality recognition program.
For example:
- Retention: Rewarding and recognizing your workforce has been shown to reduce turnover by around 31%. The calculator uses your employee headcount, turnover rate, and average salary to assess how much money you can save by retaining more team members.
- Productivity: Impactful recognition can boost productivity by up to 17%. The tool uses a conservative estimate to show the ROI a mere 1% increase in productivity could generate for your business. It factors in your employee headcount and average employee revenue (average salary × 3).
- Absenteeism: Effective recognition can decrease absenteeism by up to 41%. The calculator factors in your headcount and average employee revenue to determine how much reduced absenteeism can earn your organization.
How to Optimize Your Recognition Efforts Based on Calculator Results
Now that you’ve gained valuable insights from Awardco’s ROI Calculator, it’s time to take action! Depending on your results and objectives, you can take different avenues.
Here are some best practices to maximize the ROI of employee recognition.
1. Personalize Recognition
A one-size-fits-all approach rarely lands. To make your recognition program work for everyone, you should assess:
- What areas of the employee experience you can fine-tune
- What motivates your employees
- What types of recognition your employees like
For example, does your top sales team thrive on public praise, while your quiet developers prefer handwritten notes? Cater to these preferences for a more meaningful experience.
2. Be Timely
The truth is, recognition loses its power over time—so the key is to be timely.
Act quickly on achievements. Capture these moments and showcase your appreciation while they’re fresh in everyone’s minds. This will make your recognition efforts much more impactful and leave employees feeling pumped.
Whether it’s an on-time project completion or positive feedback from a client, highlight employees’ accomplishments right away.
3. Align with Company Values
Alignment is key. Your recognition program should reinforce your company’s core values. If collaboration is a priority, highlight instances of teamwork. If innovation is key, recognize team members who share and pursue creative ideas.
You create a cohesive and motivating culture by demonstrating how recognition aligns with your company's DNA.
4. Continuously Look for Ways to Improve
Don’t treat your recognition program like a set-it-and-forget-it exercise. Review the calculator's data regularly and solicit employee feedback.
Are certain incentives less impactful than others? Are there new company goals that need emphasis in your recognition program?
Embrace continuous improvement to keep your program relevant and effective.
5. Leverage Technology
A platform like Awardco can be your secret weapon for optimizing your recognition program. Numerous businesses have implemented successful recognition programs using our platform, and so can you.
Awardco streamlines the entire process, from creating personalized rewards to automating timely recognition deliveries. This saves you valuable time and ensures consistent recognition execution.
By following these steps and leveraging the power of technology, you can transform your employee recognition program into a strategic tool for amplifying engagement, motivation, and, ultimately, your company’s success.
Supercharge Your Rewards & Recognition Efforts with Data
Put the power of data in your hands. Awardco’s ROI Calculator helps you quantify the impact of your efforts, making a strong case for continued investment.
Start by trying out the calculator. Then, for a deeper dive into how Awardco can streamline your entire employee recognition strategy, schedule a personalized demo and discover how our comprehensive solutions can elevate your company culture.
