Imagine a workplace where efforts are seen, contributions are celebrated and every individual feels connected to the organization’s success. That kind of culture doesn’t happen by chance — it’s built through intentional, strategic recognition.
Imagine a workplace where efforts are seen, contributions are celebrated and every individual feels connected to the organization’s success. That kind of culture doesn’t happen by chance — it’s built through intentional, strategic recognition.
Recognition is a core driver behind some powerful business outcomes. Companies with highly engaged employees see a 23% greater profitability compared to their peers, reports Gallup.
Recognition also plays a vital role in employee mental health. Studies show that recognized employees are less likely to report feelings of burnout, loneliness and disengagement. Burnout alone makes an employee 2.6 times more likely to leave a company. Fostering connectivity through recognition makes a difference, especially in our remote and hybrid work era.
You may already know the benefits of employee recognition — it’s why you’re here, reading this guide! Now, we’ll help you make the benefits tangible so you can earn leadership buy-in and approval for a new or updated employee recognition program.
Before diving into the measurable outcomes of recognition programs, it’s worth clarifying two ways to evaluate their impact: return on investment (ROI) and return on rewards (ROR).
Refers to the monetary benefits gained from a program compared to its total cost. This includes hard costs (platform fees, rewards) and soft costs (administrative time, training). ROI is what you present to leadership when they ask, “What’s the bottom-line value?”
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Gives a holistic view unique to recognition strategies. ROR includes not only financial returns, but also improvements in morale, engagement, retention and alignment with organizational values. It answers a deeper question: “How does this program transform both our culture and people?”
With both ROI and ROR in mind, let’s explore how a well-run recognition program delivers measurable value across the organization.
