Management teams often see employee recognition programs as an expense, and an unnecessary one at that. However, with the right approach—and a healthy does of measurement and ROI—these programs can become a solid investment in the best of times and the worst of times. Roy Saunderson, president of Recognition Management Institute, offers the following six-step plan to measuring employee recognition for maximum results:
1. Align employee recognition with the corporate strategy.
2. Determine existing measurable indicators.
3. Establish clear, quantifiable business objectives.
4. Apply recognition processes to improve performance and behaviors.
5. Measure performance and behavioral outcomes of business objectives.
6. Calculate the rate of return for your recognition processes.