Overall Benefits of Recognition Programs
Recognition programs have been popping up in companies across America at an exponential pace. This is no accident. Regular and consistent acknowledgement of the worth of the individuals working for a company is a proven means of reducing employee turnover problems.
Recognition boosts morale and generates enthusiasm within a company. It makes the company more attractive to prospective employees at all levels. An online recognition program, such as the one offered by Recognition Clicks, has the added advantages of easy access and instant recognition. Employees are acknowledged – and are able to select their reward – on a real-time basis.
The ingredients that contribute to employee motivation and employee retention have changed. Money alone is not sufficient to attract and keep the very best people, because they are good enough to get it elsewhere. The potential for job advancement can’t do it either, because today’s flattened corporate ladders and already top-heavy management structures limit advancement opportunities. Even traditional employee benefits, although valued by employees, can’t provide the on-the-spot motivation of an employee award or recognition program. You don’t hear many people saying, "I’m going all-out today: I have a 401K plan!"
A planned recognition program creates a sense of friendly competition and camaraderie in the workplace. If the program is promoted, launched and managed right, people get more excited about their jobs. Employees know that recognition = points = gifts, and they will compete to get the most. Since points are awarded only when an employee shows a strong effort toward meeting the company’s goals, the competition creates a win-win situation for both management and staff. The company’s goals and the employees’ goals become one and the same.
As for the administration and management of an online recognition program, as proposed by Recognition Clicks, simplicity is the key: no paperwork, easy updates, and instant access to the status of each employee or department across the board. Our online programs make it easy for employees too. Access is quick, so employees don’t waste their – or the company’s – time on lengthy online visits. By simply entering a password or code, participants can access their personal balances, instantaneously check their progress or, if they’ve earned it, redeem a gift.
Tax Benefits of an Established Recognition Program
In the absence of an established recognition program, companies can give long term service or safety awards that are tax-deductible, and excluded from the employee’s income, of up to $400 per year per employee. With a written, established recognition plan, such as Recognition Clicks, the total goes up to $1,600 per employee per year, provided that the average cost per recipient is not higher than $400 in any given calendar year. The award in both cases must be tangible property (i.e. travel or gift cards don’t apply) and there are some other minor restrictions.
For additional research on the value of Employee Recognition Programs, please click here.
