service-award-budget

Service Award Budgets

Budgeting your Service Award Program - step 2

The next step to defining your new Service Award Program is to estimate your budget requirements for your First-Year and Second-Year. 

Setting your budget can only be done after determining which service milestone categories you plan to include in your program, and the level of the recognition packages you assign to each anniversary. (see previous topic)


Start by defining the budget for the first year of your program. Then, estimate the average budget needed for each of the following years. The budgeting phase is key to getting approval for your new Service Recognition Award Program.

Calculating your first and second year budget requirement is also the best time to re-evaluate all elements of your plan and make cost related changes.

At this stage you can easily make adjustments to the Award Package Levels assigned to each service milestone. For example: You can add Early-Recognition or On-boarding,  or remove either. If needed, consider changing some of early recognition (ie: 1 month, 6 months, or 1-year), by making some of these recognized with just a certificate.

Your First-Year’s Budget:

With data from Human Resources, calculate the budget for the first year of your years of service program, by multiplying the number of employees reaching each of your defined milestones by the cost of the Award Packages you have assigned to each. In the same way, add the catch-up awards (if any are to be included) to the first-year’s awards.

Now Estimate the Second & Following Year’s Budget:

Again, with data from Human Resources, project the budget needs for the second year of your new program, based on the number of employees who will be reaching various milestones in that year. Use this (second year) budget estimate as the typical annual amount needed each year going forward.

Click next to continue reading the Guide to Employee Service Awards

Prev: Defining Awards for each Milestone                  Next: Service Award Presentation Tips

  Previous-Button.jpg           Next-button-400.jpg

Or, see Service Award Guide's contents (List of Topics) to jump to specific topics


Call now to talk to a Recognition Specialist
call 630-954-1287  (M-F, 8:30 am - 5:00 pm CST),
or

Use the FORM below to
request FREE information.

Get Free

Info & sample
award packet
sa-cover-200
Request Samples & Info

Send Service Award
Program Information

Use this form to request your free information package, sent via UPS. It will include:

*  Sample Employee Service Award Presentation
*  Sample Gift-of-Choice Award Catalogs
*  How to tailor Service Award Presentations
*  Pricing, order forms, and how to get started.