What does employee recognition cost?

When someone asks me "What does an employee recognition program cost?", I'm not sure how to answer. Sure, I could summarize the many different programs we offer, or calculate the average cost of all the employee recognition programs we've helped set up. But I would come up with the right answer to the wrong question.

Instead of asking what an employee recognition program costs, perhaps the better question would be "What is an employee recognition worth?" How much does it improve employee job satisfaction? How much does it decrease employee turnover? How much does employee recognition improve worker productivity? These are all measurable, positive outcomes of any employee recognition program, regardless of their cost. When you recognize someone for a job well done, they are inspired to do even more. When you thank an employee for doing something special, it makes them feel special. When you give a new employee their first name tag, it makes them feel like part of the team. 

An employee recognition program doesn't have to cost much. In fact it doesn't need to cost any more than your attention and your time, acknowledging them personally. It could be something as simple as a "Thanks You" post-it note on their desk when they come on Monday morning. It could be a cupcake for them on their birthday. Anything you do that shows your understanding and acknowledgement of them will do. The more personal, the better. The more public, the better. The more frequent, the better.

Perhaps that's the value of a formal employee recognition program: It forces you to consider and reward your employees on a regular basis. A formal program encourages a regular, recurring practice until it becomes a habit. If you wait and only focus on employee recognition, it will inevitably move down the scale of importance just because other things are always screaming louder for your attention. Putting it on a schedule, will be a regular reminder that this is something that is important enough to move to the top of the in-basket. 

So next time you're looking at the cost of recognizing your employees, don't focus on the cost, look at the value. All form of recognition have a huge ROI.