Funding and support for reward and recognition programs, as well as non-monetary gifting, is on the rise. A study conducted by the Incentive Research Foundation (IRF), proves 2020 will be a great year for event gifting, merchandise, and gift cards.
Participants of the study reported that budgets for employee reward and recognition programs are projected to rise in 2020. Employee recognition is gradually becoming the norm in workplaces around the world. No longer viewed as simply an employee benefit, these programs are increasingly treated as essential business initiatives.
In today’s corporate environment it is vital to recognize and reward employees because it shows they are valued and appreciated for their hard work. In the past, many companies primarily focused on client satisfaction. Today, the goal has expanded to recognize clients and employees. After all, your employees are your best brand ambassadors and they represent the foundation of your business.
Companies that choose to opt out of recognition programs are becoming a thing of the past. As noted in the study conducted by the IRF,merchandise spend has increased from 29% to 34% year over year; communication budgets have grown from 27% to 31%; and administration budgets have increased from 17% to 23%. Additionally, overall budgets for reward and recognition programs are projected to increase from 38% to 43% in 2020.
Interestingly, it was documented that companies are allocating the same amount of budget to their reward and recognition programs as they are to program technology (platforms, mobile apps, tools, etc.). The moral of the story: having a reward and recognition program is critical to your workforce experience.
As you transition into 2020 business planning, contact a Marketing Innovators specialist – we’d love to collaborate with you. We’ll help implement a smart, simple, and savvy employee recognition solution that makes sense for your workforce and produces results.