by Tina Weede, CRP | December 30, 2013
TinaWeede_Ask_the_Experts
Tina Weede, CRP


Every week, we feature a piece of expert advice from a certified recognition professional (CRP) from Recognition Professionals International, an industry association dedicated solely to understanding, improving, and advancing employee recognition & rewards in the workplace. Send your questions to [email protected] or reach out via Twitter @RPITweets

Q: How much should a company budget for its recognition programs? 

A: Budgeting for recognition programs takes careful planning in order to be successful. A recent survey by WorldatWork indicates that organizations are budgeting an average of 2 percent of payroll for recognition programs; however, the median amount is 1 percent. The real answer is, however, that there is no budget too small. Even if you have no budget funds, a thank-you note, paid time off, or a company-wide email recognizing an employee’s efforts can impact employee engagement. 

There are common formulas and metrics such as percentages of compensation or achievement levels, but standard guidelines don’t take into consideration specific outcomes and objectives or other variables. Determining desired outcomes and measuring them effectively is key to planning budgets and analyzing results. Desired outcomes can range from increased sales to improved retention rates. Variables include the number of employees, the length of program, and the types of employees, etc. Evaluating these factors can help you more precisely allocate your funds.

About Our Expert: Tina Weede, CRP, is vice president of Recognition Professionals International and serves as the president of USMotivation. She has an extensive background in performance improvement and recognition in both business-to-business and consumer marketing. She has designed, implemented, and managed incentive programs of all sizes, providing wisdom through measurable results. Weede began her career at J. Walter Thompson. In 1990, she joined the communications division of USMotivation. She served as vice president of major accounts, where she was instrumental in helping clients align incentives with their business objectives prior to being named president in 2010. Under Tina’s leadership, USMotivation has reached many milestones. In 2012, 30 percent of its associates were trained and designated as CRPs through Recognition Professionals International. 

Have a question on employee recognition & rewards? Send to [email protected] or reach out via Twitter @RPITweets