How to Measure the Effectiveness of a Rewards and Recognition Program?


Rewards and recognition play a crucial role in an individual’s and organization’s growth. Rewards and recognition programs allow you to show your appreciation to your employees and customers. It is a way of believing in your people and being empathetic towards them. 

The program helps in improving the performance standards of the individuals working with you, as well as, in establishing a healthy, professional relationship. It lets your employees, and clients know that you genuinely value them and not just running a mill to mint money. 

If you are able to make your people feel valued and appreciated, then you know that you have created a healthy workspace through this program. Your stakeholders would always be honest in putting in their efforts, because they feel motivated and recognized. 

An effective rewards and recognition program results in:

●        Motivated employees

●        Higher productivity

●        Achieved goals

Now, how do we measure the effectiveness of the program?

Here are 5 ways:

  1. Observe the reactions:

This is the quickest way to check the effectiveness of your rewards and recognition program is by keenly observing the reactions of each of the individuals, right after the program is implemented. Reactions never lie. Therefore, keep an eye on how your stakeholders are responding to the program. Are they excited about it? Are they working at their potential to win the carefully designed rewards and timely recognition? Are your customers frequenting your establishment to rack up those points? Are your channel partners actively helping in increasing your reach and revenue? These would be some good pointers to measure the effectiveness of the program.

Primary research in measuring effectiveness
  1. Ask questions:

You can ask a few direct questions to each group of stakeholders, for example, your employees, channel partners, sales personnel, customers, etc. Have proper conversations and request feedback. Talk to them about your reward and recognition framework ask for their input on what they would like to see in it. 

  1. Set a specific goal: 

Setting a goal could be really helpful. By ascertaining what you want to achieve from the program, you can find out if you have achieved it or not. If you achieve it then you know that the reward and recognition ideas, you implemented turned out to be effective. 

  1. Check progress:

Checking the progress of the individuals you are creating the program for will help you examine the progress. You will get to know if your program is inline or not. For example, you can check to see if your employees are feeling motivated, are efficient at their work, etc. It’s a pretty good indicator to show whether employee rewards have been fruitful.

Keeping Experimenting Continuously
  1. Check results: 

It is a simple approach. You could keep an eye on the return on investment (ROI) or profit of the organization. If there are changes, it may help you in giving an indication that the reward and recognition policy you implemented, is indeed working. 


When these methods return positive results, you will know that your rewards and recognition program, is serving the purpose it was implemented for. You will know that your team efforts are improving, your customers are satisfied, and that you are working with honest and motivated individuals.

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