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Topic: Appreciation

How to track the ROI of Employee Recognition

A guide for HR leaders and executives

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In today’s business world, employee recognition programs play an important role in top-performing organisations everywhere. This is especially true for companies that are renowned for their thriving workplace cultures. Many articles like this one speak to the ROI of recognition in industry-wide terms. But when it comes to your organisation, is a recognition program truly worth the investment? Do the benefits outweigh the costs? And if so, can the return on your recognition program investment be quantified? The answer to these questions is yes. This article will show you how.

It all begins with culture


As Richard Branson once famously expressed, “Take care of your employees and they will take care of your business.” While widely accepted, this axiom is much harder to achieve than it sounds. Caring for employees requires a world-class corporate culture. And the elements of culture are vast, encompassing why, when, where and how we work. This leads to an essential question that lies at the heart of Culture by Design: If humans require a great culture to do their best—a fertile environment that motivates and inspires them to achieve—where can leaders begin to create such a culture? Are the things that affect culture all created equal? If not, which ones matter most?

The answers to those questions all point to one thing: employee recognition. Research indicates that no other investment can deliver as positive of an impact on workplace culture—as simply and cost-effectively—as employee recognition.1 That makes the ROI of employee recognition significant indeed. Recognition provides a substantial lift to everything from attracting top talent to increasing motivation, from improving productivity to fostering innovation, from encouraging great work to improving business results.

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