Recognition Budgets

In almost all meetings I have with prospective customers, the “Budget” question invariably pops up. How much do I spend on recognition programs? What do other companies spend on recognition programs?

RPI (Recognition Professionals International) – had undertaken a survey in 2003 (in North America), where the average budget for recognition programs was 2% of payroll costs. RPI further recommends a budget between .5% to 3% of payroll costs, with 2 to 2.5% of payroll costs, being the ideal budget for an effective recognition program.

From informal interviews with about 30 organizations across various industries in India, the recognition related spend in India seems to be in the range of 0.5% to 1% of payroll costs.

The amount of interest from prospective customers shown around budget data clearly demonstrates the need to undertake a formal survey in this regard.