Is it time to modernize your recognition & reward program?
Our last blog post talked about the importance of recognition and offering the right choice of rewards. I want to take a step back and provide some intel for those of you who are just starting to think about modernizing your recognition and reward (R&R) program.
Gartner’s 2017 Recognition and Rewards Software: What You Need to Know report is an amazing go-to resource on this topic chock-full of best practices, considerations and pitfalls to avoid when selecting a new R&R vendor.
This post will outline three reasons why companies are moving to a centralized R&R program. Next week will test your readiness for a new R&R program and the final blog post will give you the criteria to consider when evaluating vendors.
3 reasons companies are moving to a centralized R&R program
1. To Avoid the Tax Man
A modern and centralized R&R platform reduces the risk of tax noncompliance. Discretionary budgets at a departmental level (for gift cards and other ad hoc rewards) generally go unreported. A central R&R platform provides full traceability and reporting to ensure your company and employees are fully tax compliant.
2. To Support Company’s Broader Strategy
R&R has evolved to more than just service anniversary awards and special achievements. As companies move away from annual performance appraisals toward a more fluid performance management philosophy, R&R tools become increasingly important to communicate expectations, reinforce actions that support your core values and facilitate cultural alignment toward a broader strategy.
3. To obtain a competitive advantage
R&R programs are no longer designed for large enterprises (organizations with more than 5,000 employees). While the big players may still be out of reach for SMBs, there are many smaller, experienced vendors with the same tools, at a fraction of the cost.
Engaged employees = a competitive advantage as your employees are more productive, stick around longer and go the extra mile for a client/customer.