6 steps for determining the ROI of an employee recognition program

It’s a question that always comes up when companies are considering starting an employee recognition program — or questioning if they should continue implementing a program: “What’s our return on investment?”

It’s a valid and important question. Depending on the size of your organization, you could spend an average of $125 to $175 per employee per year on awards costs and another $50 to $75 per employee per year on administrative costs. That’s up to $250 per employee per year — $125,000 for a medium-sized firm with 500 employees or $2.5 million for a 10,000-employee corporate titan.

Of course, the CEO and CFO will want to know what they are getting for that kind of money.