Employee rewards and recognition programs are gaining popularity among managed services providers (MSPs) as a way to increase employee engagement and reduce turnover. In fact, a survey by the Society for Human Resource Management found that 70% of organizations reported increased employee engagement after implementing such programs.
The financial benefits are clear, too. The Incentive Research Foundation found that companies that invest in rewards and recognition programs can expect an average return on investment of 5.5 to 1. This means that for every dollar invested in a program, companies can expect to see $5.50 in increased engagement, productivity, and decreased turnover. According to the Society for Human Resource Management (SHRM), turnover sets you back an average $4,129 cost-per-hire for a new employee.
So, how can you implement a successful employee rewards and recognition programs? Here are some tips:
- Make it personal: Recognition should be specific and meaningful to the recipient. Consider individual preferences and tailor rewards accordingly.
- Make it timely: Recognize employee achievements as soon as possible. Delayed recognition may feel insincere or ineffective.
- Make it public: Publicly recognizing employees can have a powerful impact on morale and motivation. Consider sharing recognition in company-wide emails or meetings.
- Make it consistent: Rewards and recognition should be consistent and fair. Develop clear criteria for recognition and apply them consistently across the organization.
- Make it inclusive: Ensure that all employees have the opportunity to be recognized. Consider developing different programs for different types of achievements or contributions.
There are a number of online platforms available to help you create and implement a dynamic rewards and recognition program. Our Team GPS is one such offering. Built on our 20 years of experience in the MSP channel, one of its five vital components is a very popular Rewards & Recognition module that integrates with Microsoft Teams, so your team members can easily see and share the shout-outs. This is a great way to create a robust internal culture.
Employee rewards and recognition programs have been shown to increase employee engagement, improve morale, boost loyalty and commitment, and improve productivity. MSPs that invest in these programs can expect to see a positive impact on their bottom line and on their employees. With the growing trend towards implementing such programs, it’s clear that companies looking to engage and retain employees must take the time to consider the benefits that a well-designed rewards and recognition program can provide.