The answer to this can vary as every company has different goals for their recognition programs. A World at Work study found that while some organizations spend as much as 10% of payroll on employee recognition, the average budget for employee recognition is 2% of payroll, and the median amount is 1%.
According to Recognition Professionals International, the average budget for employee recognition is $30-$50/FTE while high performing companies average up to $150/FTE (not including service awards).
Once your budget is finalized, it is time to evaluate different employee engagement and recognition strategies that will provide value to your employees and be within budget.
In addition, intangible recognition, large celebrations, thank-you notes that employees give to one another, and gatherings featuring low-cost mementos or refreshments are just a few of the options available.
While every type of recognition doesn’t have an award attached to it, many employee contributions are reward-worthy. Why not make sure that your recognition awards are appropriate and memorable—in a good way.