One of the most popular breakout sessions at our recent RCGNZ Summit, titled Show Me the Money, brought together industry leaders and recognition experts to tackle one of the most pressing challenges in employee recognition—budgeting effectively. The panel featured:
- Christie Gilbling: Leader of Employee Experience in Mergers and Acquisitions at Cisco.
- Laura Shamley: Recognition Consultant at DocuSign
- Cali Hyde: Director of Strategic Accounts at Awardco
This session offered a wealth of practical strategies and real-world tips on how to maximize recognition programs, whether you're working with a modest budget or looking to expand an existing program.
Read the recap below to catch up on everything shared during this session.
Actionable Strategies for Building a Recognition Budget
Here are tried-and-true approaches for setting up a budget that aligns with your company’s goals and values:
1. Start with Non-Monetary Recognition
For organizations with tight budgets, non-monetary recognition can be the perfect place to start. Here are some low- or no-cost recognition ideas:
- Public acknowledgment: Shoutout someone in meetings or team emails.
- Development opportunities: Offer stretch assignments or shadowing sessions.
- Flexibility: Grant extra time off or flexible hours.
- Creative awards: Pass around a quirky office trophy or give out certificates.
- Personal notes: Give handwritten letters recognizing individual achievements.
The key is frequency and sincerity—recognition should feel personal and meaningful.
2. Avoid the Culture of Entitlement
When awards are given without consideration of effort or achievement, employees may begin to expect rewards without meaningful contributions.
The solution? Decouple recognition from entitlement by:
- Tying rewards to company values.
- Recognizing behaviors that drive business success.
- Using data to ensure high performers receive appropriate recognition.
3. Define What You Want to Reward
Before budgeting, clarify the behaviors and outcomes you want to promote. Some ideas include:
- Day-to-day behaviors: Notice small and consistent positive actions.
- Above-and-beyond contributions: Reward exceptional performance.
- Team successes: Celebrate milestones collaboratively.
- Unsung heroes: Recognize employees in support roles who often go unnoticed.
4. Plan for Recognition Milestones
Traditional service anniversaries may not hold the same weight today, especially as employee tenure decreases. Instead, consider celebrating other milestones, such as performance-based achievements or personal milestones. Don’t forget about a robust onboarding plan, either.
How Much Should You Spend?
There is no one-size-fits-all answer. The right budget depends on your organization’s size, industry, and goals.
For example, here are just a couple examples of the different budgets organizations can have:
- A retail company increased its recognition budget by $350,000 to support franchise expansion and reduce turnover.
- Two similar-sized manufacturing companies allocated similar budgets but structured them differently based on their unique goals—one focused on non-monetary programs, while the other prioritized monetary recognition.
The takeaway? Define what success looks like for your organization and allocate resources where they have the most impact.
Why Recognition Budgeting Matters
Whatever your goals, recognition isn’t simply about money—it’s about building a culture that values and acknowledges contributions. Studies show that employees who feel recognized are up to 50% more productive. But beyond data, real impact comes from intentional, frequent recognition.
Pitching for a Recognition Budget: Key Tips
When requesting a recognition budget, preparation is essential. Here’s what to include in your business case:
- The why: Clearly show where the organization can improve, then present data and research on recognition’s impact on those shortcomings.
- Projected ROI: Use internal data to show potential cost savings from recognition improvements.
- Peer benchmarks: Show how similar companies allocate their recognition budgets.
Crawl, Walk, Run: A Strategy for Growth
For those either starting a new program or rebuilding their budget, consider this three-step approach:
- Crawl: Launch non-monetary recognition programs to build engagement muscles.
- Walk: Introduce small monetary rewards strategically aligned with company values.
- Run: Scale up to incorporate peer-to-peer, manager-led, and milestone-based recognition.
Find Hidden Budget Opportunities
Look for budget reallocation opportunities. For example, you may be able to add funds to your recognition program by pulling from:
- Travel and Expense: Reduce ad-hoc expenses by centralizing recognition funds.
- Sales Incentives (SPIFFs): Streamline and consolidate to improve program efficiency.
- Compliance Budgets: Use recognition as a tool to encourage adherence to important policies.
Build It, and They Will Come
Recognition programs are investments in culture and engagement. With the right strategy and a thoughtful budget, you can create a program that rewards meaningful contributions and drives long-term success. Trust the process, measure your impact, and let recognition be the foundation for a thriving workplace culture.
Watch the full recording and view all other RCGNZ Summit 2024 sessions here.
An avid lover of fantasy books, a proud Hufflepuff, and a strong proponent of escapism, Jeff has a love of good storytelling. He relies on that for both his professional work and his writing hobby (don’t ask about the 10+ novel ideas collecting virtual dust on his computer).
