Tangible and Intangible Profitability
Tangible & Intangible Profitability
Published on May 24th, 2019
By HAMILTON Staff
Most businesses look toward recognition programs with one major thought in mind: Will this contribute to our bottom line? It isn't easy to measure the exact influence an employee reward program has on your business's financial bottom line, as many components affect profit margins simultaneously. However, the general financial profitability you can yield from implementing high-quality employee reward programs comes from all ends of the business, from increased overall earnings to decreased spending on HR functions that result from higher retention rates.
You've probably heard the expression, "you have to earn money to make money." The same can be said of employee recognition programs, which involve some upfront costs but can make a big difference on the bottom line in the long run. When you invest in your employees, they may feel motivated to put more time and effort into their work going forward, as they know their hard work is being recognized.