Budgeting season — its the time we start crunching numbers to determine how much budget will be set aside next year to reward and recognize employees. This figure varies based on the number of employees
you have, but the Society for Human Resources Management (SHRM) suggests that a rewards budget of 1% or more of total payroll is key for a successful program.
Assuming you have executive leadership buyin, what should your rewards and recognition program look like? Should you use it to mark years of service milestones? To recognize achievements? To reinforce good behavior and company values? To motivate and enhance performance? To celebrate employee life events? All of the above? You’ll likely need to include a different budget line for each type of recognition, all of which rolls up into your total recognition budget.
According to SHRM, the most common types of recognition are timely, developed with input from employees, and tied to business outcomes. Use these factors to craft a program that is just right for your organization’s mission, vision and values.
