Six Steps to Employee Recognition ROI

Can you measure the
ROI on employee
recognition initiatives?

YESyou can,
but first you have to define
what’s important to measure.
Can you measure the
ROI on employee
recognition initiatives?

Here’s the
six step process to follow:

Start with defining
your recognition objectives.
1

Common objectives include:
Increasing productivity

Reducing
customer service complaints

Reducing
customer service complaints
Improving morale

Your program may also
positively impact
other objectives,
but if you
focus on one or two,
you’ll find it easier to
create a
defensible ROI.

Identify the key metrics
that align to your objectives.
2

Identify the key metrics
that align to your objectives.
2
Use measurements
you already have
in place.

Establish a control group.
3

The control group can be
a baseline period to
use for comparison.

The control group can be
a baseline period to
use for comparison.
This adds credibility to your
final ROI calculations
and results.

Define and
communicate behaviors.
4

5
Set realistic expectations.

You should reasonably
expect not to see
any significant change
for at least six months
against your key metrics
and it could be as much
as 36 months.

Focus your measurement
on tactical results such as:

Percentage of managers
who have participated in
program training.

program training.
The number of recognitions
employees have sent
their co-workers.

program training.
The number of recognitions
employees have sent
their co-workers.
The percentage of
employees who have
recognized a co-worker.

The number of recognitions,
per manager, that have
been given.

The number of recognitions,
per manager, that have
been given.
using thier discretionary
awards budget.

Calculate all of your
program costs.
6

Including these costs
will lower your ROI –
and increases your
credibility when
management
understands that
you are being
completely transparent.

will lower your ROI...
Labor

Labor
Materials

Labor
Materials
Training

Labor
Materials
Training
Presentations

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