Showing your employees how much you appreciate them, even just one day a year, is an essential part of building a positive work environment. Continuing to recognize the hard work that your team members put in each and every day, by starting an employee recognition program, is even better.
According to a survey conducted by the Society for Human Resource Management, 72% of companies have an employee recognition program in place. However, another study by WorldatWork found that only 58% of organizations rated their recognition programs as effective or very effective. So, while many organizations have recognition programs in place, the effectiveness of these programs varies. If you want your employee recognition program to be effective, it is vital to evaluate the success of these programs to ensure that they effectively achieve the desired outcomes.
Here are four key areas where you can measure the success of your employee appreciation program:
Keep an eye on Employee Engagement
One of the biggest factors affected by employee appreciation programs is levels of employee engagement. Engaged employees are more productive, motivated, and committed to your organization.
You can measure employee engagement through employee surveys, focus groups, or weekly one-on-one meetings. These methods can help you gather feedback from team members about their perception of the appreciation program on their level of engagement. Whether or not your surveys are anonymous depends on if you have a strong feedback culture in place already.
If giving and asking for feedback isn’t already a part of your culture, you can start with anonymous surveys to encourage honesty. Once feedback is an active part of your culture, you can begin to remove anonymity.
Learn more about creating a culture of feedback in this on-demand webinar.
Gauge Employee Retention
Another goal of an employee appreciation program is to retain your greatest asset: your people. Retention rates can be measured by comparing the number of employees who stay with the company for a set period, such as six months or a year, before the implementation of an employee appreciation, to the rates after the implementation of the program.
Learn about measuring the ROI on your employee engagement here.
An increase in retention shows that your program is having a positive impact on employee satisfaction and commitment to your organization. Employees who feel appreciated are more likely to stay with the company, reducing turnover costs and improving productivity.
Track Performance Metrics
Performance metrics, such as sales figures, customer satisfaction ratings, and employee productivity, can provide valuable insights into the effectiveness of an employee appreciation program.
An improvement in these metrics is an indication that your program is having a positive impact on employee performance. A team member who feels appreciated is more likely to go the extra mile, resulting in increased sales, higher customer satisfaction ratings, and increased productivity.
One way to track performance (and better engage your team members) is by helping each person set personalized, measurable goals. Team members who understand how their role ties to your overall mission have higher engagement and job satisfaction. Clarity is key.
Calculate Cost-Benefit Analysis
A cost-benefit analysis is an important step in determining the success of an employee appreciation program. The cost-benefit analysis involves comparing the costs of the program with the benefits it provides to the organization. The costs of the program can include the cost of implementing the program, such as the cost of gifts or rewards and time spent getting started and maintaining the program, while the benefits can include increased employee engagement, improved performance, and increased employee retention.
Conducting a cost-benefit analysis can also help you identify areas where you can improve your program to increase its effectiveness.
Tracking can be as simple as having an excel sheet listing the inputs and outputs experienced. If you don’t have a way to measure employee engagement yet, learn how you can do so here.
Employee appreciation programs are key to creating a positive culture in your organization. Measuring the success of such programs helps ensure that your efforts have the desired outcome of positively impacting your team members. Regularly tracking and evaluating the effectiveness of your employee appreciation program can help your organization identify trends, make improvements to your program, and ensure that your team members know that you appreciate their efforts.
Leadr’s people development software has built-in tools to help you track engagement and performance metrics. Request a custom tour of the Leadr platform to find out how intentional people development can be a foundational part of your employee appreciation program.
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