From working with dozens of companies to develop and run employee recognition programmes, we have learned that every company is different, and yet the process for launching a successful programme is always the same.
These 10 steps should be taken in sequence as a company looks to design a recognition programme that will work for their specific company requirements, and for their employees.
1. Set the Goals
From the outset, it is essential to be clear about what issue the programme is looking to address – be it company culture, attendance, staff attrition, productivity, sales etc. Not only should the broad performance area be identified, the exact goals should bet set in a SMART way (Specific, Measurable, Attainable, Relevant and Timely). Only in this way, can a before-and-after measurement can gauge the success of the programme.
“What gets measured, gets done. What gets rewarded, gets done well.”
2. Choose the Type of Programme
There are many different employee reward & recognition programmes to choose from, and it is important to select the right one for your company. While Allgo tailors every programme to its client specific needs, in general programmes fall into the following categories-
- Service Awards
- Performance-based Points Programmes
- On-The-Spot Rewards
- Nomination-based Awards (eg Employee of the Month)
- Sales Competitions
- Peer-2-Peer Rewards
The type of programme will depend on both the programme’s goals, the specifics of the company’s requirements, and the employee profile.
Success often depends on offering engaging rewards with easy-to-understand mechanics for earning those rewards.
Mostly, this comes down to budget, or perceived budget, and very often companies start programmes in-house, before migrating to an external provider to remove or reduce the admin burden.
There is value in at least engaging with reward providers like Allgo from an early stage, as the advice, information and case studies can be invaluable in developing a reward programme. And in fact many providers like Allgo offer hybrid solutions like AllGifts points – a reward portal for clients to self-manage reward programs in-house.
Setting the budget is of course essential to the sign-off of any programme. While this very much depends on the type of programme and whether it is managed in-house or by an external provider, by far the single biggest cost component of any recognition programme is that of the rewards themselves.
While tax-schemes such as the €500 Small Benefit Scheme in Ireland, can offer some attractive cost savings, it is important to note that the level of rewards on offer must be high enough for employees to engage with the programme. A general rule of thumb is that an employee needs to be able to build to a minimum of €50 in order to be engaged with a reward programme – any less than that risks the “meh” reaction.
Best practice says that a recognition programme budget should aim for 1% of payroll, though this budget is often mitigated by the myriad of ad hoc rewards managers and departments are already spending on employee rewards.
5. Get Leadership Buy-In
Leadership buy-in is essential to any successful reward programme. Not just in terms of signing off the budget, but also in terms of the senior leaders being actively and visibly involved, and playing a role in the launch and ongoing activation of the programme.
Some of the most successful employee recognition programmes involves the company CEO personally writing to reward recipients on a regular basis to acknowledge their achievement.
For Part 2 of this Blog: 10 Steps to Successful Employee Recognition (Part 2)
If you would like to talk to Allgo about putting in place an employee recognition programme to engage you staff, don't hesitate to contact us today.
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