Budgeting for Employee Recognition: Tips & Advice
You love spoiling your staff. Now, make it fit into your yearly budget! With a few simple steps, HR pros and administrative staff can add a well-planned line item to the expense proposal when budgeting for employee recognition. This will make your employees feel appreciated throughout the new year!
Calculate the Number of Employees
First, you have to know how many people you realistically are going to recognize throughout the coming year. In addition to active staff, don’t forget to factor in potential new hires and temp employees that you will pull in for special projects. You might also include independent contractors who dedicate ample time helping to grow your business!
Estimate a Realistic Budget Per Person
Start by getting a rough idea of how much you spent last year on employee recognition by looking at old receipts or accounts payable files. A simple estimate is a good starting point.
Then, do some research to learn the cost of your most popular recognition gifts, including certificates, plaques, trophies, gift baskets or gift cards. Add an extra 10 percent or so to pad for increases in costs of goods and unexpected expenses. Once you have an estimate, multiply it by the number of people you plan to recognize.
A Per Person Budget Might Look Something Like This
- 10+ Year Employees – $500 in gifts and recognition X # of employees
- 5+ Year Employees – $300 in gifts and recognition X # of employees
- Below 5 Year Employees – $100 in gifts and recognition X # of employees
- CEO or leadership recognition
Create a Separate All Staff Budget
After budgeting for employee recognition on an individual basis, think of the entire office as a whole. Set aside funds for a few all-company parties, include holiday gatherings, birthdays, celebrating company successes or employee milestones. Decide how many of these gatherings you can afford per year, and put a price cap on each to cover decorations, food, entertainment and party favors.
An office Recognition budget May Look Something Like This
- Company Wide Parties – $1,000 X 3 Parties
- Holiday Party or Event – $5,000
- Company Breakfast $100 X 12 months
Stick to Your Annual Spending Plan
Finally, the only way to make a budget stick is to actually follow it! When prepping for any employee recognition or company party, inform all planning committee members of the budget. To stay in line, you may need to get a little creative and shop around for the best prices, use coupons or shift your plans a bit to stay on track. Potluck, anyone?
As you work on your budget, and price gifts for your employees, stock up on the most popular way to recognize a job well done — a certificate of appreciation! Shop Paper Direct’s online store today so you can have several varieties of these go-to awards on hand.