Employee recognition programs are a great way to improve employee morale, increase retention rates, and boost productivity. However, to measure the success of these programs, it is essential to define key performance indicators (KPIs) from the very beginning. In this exercise, we will identify and evaluate potential KPIs for an employee recognition program.
- Identify the objective(s) of the employee recognition program. What do you hope to achieve with this program? Examples might include improving employee morale, increasing retention rates, or boosting productivity.
- Brainstorm potential key performance indicators (KPIs) that could be used to measure the success of the program. Some examples might include:
- Number of employees who have active accounts for the program (Active user status)
- Monthly quarterly or yearly unique sent recognitions (Sender RES)
- Program reach - are nearly all employees receiving recognition? (Recipient RES)
- Average length of time employees stay with the company after being recognized
- Increase in productivity or sales after implementation of the program
- Survey results measuring eNPS, employee satisfaction, and engagement
- Evaluate the potential KPIs in terms of their relevance to the program objective(s), feasibility of measurement, and ability to provide actionable insights. Consider the following questions:
- Is the KPI directly related to the program objectives?
- Can the KPI be measured accurately and consistently?
- Will the KPI provide useful information for decision-making?
- Choose the KPIs that are most relevant and feasible for your organization and program objectives.
- Set targets for each KPI based on best practices and establish a system for regularly tracking and reporting progress towards these targets.
By completing this exercise, you will have a better understanding of what KPIs are important for your employee recognition programs and have a plan in place for how to measure their success.