Setting a Budget for
Employee Service Recognition
Step Four - when creating your Service Awards Program:
The next step is to estimate your budget requirements for Year One and Year Two of your new program.
Setting your budget can only be done after you determine which service milestones you will include in your program, and the recognition package assigned to each. (see previous topic)
Defining your service award budget for the first year of your program, and the average cost for each of the following years, is a key element required to get approval for your new Award and Service Recognition Program.
Calculating your first and second year budget needs is also the best time to re-evaluate key elements of your plan, and to make adjustments.
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 Onboarding or remove either. Or, consider making changes for some of your early recognition (ie: 1 month, 6 months, or 1-year), by making some early recognition just a certificate.
With data from Human Resources, calculate the budget for the first year of your employee years of service program, by multiplying the number of employees reaching each milestone by the complete cost of the Award Packages assigned. In the same way, add the catch-up awards (if any are to be included) to the above first-year’s awards.
Second & Following Year’s Budget Estimate:
Again, with data from Human Resources, project the budget needs for the second year 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
Or, see Service Award Guide's contents (List of Topics) to jump to specific topics