4 Ways To Determine Your Rewards Program ROI
Employee recognition and rewards programs are important for increasing workplace engagement and making staff feel valued. In fact, 75 percent of employees formally recognized for their effort at least once a month claimed to be very satisfied with their job, HR today reports.
While it is all well and good to
use an employee rewards program, many businesses are unsure about how much they are willing to spend on it, how to use program data to improve it and how to track their Return on Investment (ROI) from the higher talent retention and engagement.
This is largely due to lack of awareness of the many easy ways to measure ROI on rewards programs:
1. Simple reporting
Choose a rewards program that gives you easy access to data on employees' engagement with your online program. Many online rewards platforms will allow companies to view essential data such as:
- How many people logged into the program;
- The number of awards issued, sorted by department or individual receivers;
- The value of the incentives delivered to your staff.
This will give you access to a myriad of data that paints a detailed picture about how your employees are interacting with your online program. You can then use this information to customize an individual's access or to make your platform more engaging.
2. Managing leaderboards and virtual trophies
Gamification is a key element in making your employee rewards program more engaging. Introducing digital trophies and leaderboards makes fulfilling the expectations of their role and achieving for your business seem like a game, which can be helpful in taking the pressure off under-the-pump staff members. But how does this track ROI on an individual employee's input?
How your workers interact with these engagement elements is a good indicator of how motivated they are by the rewards you are offering. If they value this display of digital competition and regularly monitor their progress in fulfilling their goals, they are likely to enjoy the recognition program you have set up and are probably satisfied with your rewards culture.
On the other hand, if you notice an employee who rarely engages with the gamification features or doesn’t use the online rewards platform at all, it is a good indication you need to find a recognition strategy that suits them better. Not all employees like to be rewarded in the same way - tailoring your program to individual preferences is easier when you can access this data.
3. Surveys and employee feedback
There is little better feedback than a direct qualitative survey. Finding out what employees think about your recognition culture and rewards program in their own words is invaluable to making changes that will positively affect the way your staff see your business and how they approach their jobs.
Make your surveys easy to use and quick to complete in order to ensure workers aren't deterred from supplying this valuable feedback.
4. Budget manager
Many businesses are uncertain about the value of a rewards program against the cost of setting one up and managing it. As a result, many rewards program providers have created features that allow you to accurately track all your outgoings - leaving you in control.
It’s a good idea to assign budgets on a team, departmental or managerial level, affording different levels of access to expense data. Tracking your spending offers a clear dollar-value that your recognition scheme can be set against.
If you are unsure about whether your business is getting the right ROI from its rewards program, talk to the Incentive Marketing Association today. We are committed to creating greater awareness of the value of incentives, both for businesses and employees.