How to use Tremendous for employee recognition

Employee recognition programs support employee engagement, which supports a slew of business benefits such as increased productivity and retention across teams. Well-recognized employees are 45% less likely to have turned over after two years, according to a Gallup/Workhuman study. 

Employee retention translates to substantial savings for companies, considering the cost of replacing an employee can be up to two times their salary. That number can be even higher if you account for hidden expenses like potential project delays and lost institutional knowledge. 

Despite the benefits, creating and managing an employee recognition program can be challenging. Many companies struggle with consistency, fairness, and the administrative burden of distributing rewards. 

That's where Tremendous comes in. Our platform simplifies the process of sending rewards and makes it easy for businesses of all sizes to run employee recognition programs. 

Here’s how you can use Tremendous to save time and streamline operations as you reward your workforce.

Step 1: Set a budget

Your budget will influence the types and frequency of rewards you can offer, but how much should you ask for? According to SHRM research, companies that allocate 1% or more of payroll to recognition see better results.

That said, there’s no magic number. You can start by aiming for 1% to 2% of payroll for recognition. However, budget needs can vary depending on your industry, company size, and specific goals.

Remember, employee recognition doesn't have to be strictly monetary. Non-monetary recognition like public acknowledgment and extra PTO can enhance your program’s effectiveness and increase the perceived value of your program’s rewards.

Step 2: Define criteria for recognition

Whether you’re recognizing big wins or small, consistency is key. For example, you can reward employees for exceeding sales targets and also for demonstrating company values in their day-to-day work. 

While performance-based rewards can be motivating, be cautious about overemphasizing them. Focusing solely on top performers can create an overly competitive environment and inadvertently demotivate other employees. It's important to strike a balance that recognizes a wider range of contributions. 

Consider incorporating recognition for personal improvements, high levels of effort, or side skills like mentoring junior team members. You can also use rewards to celebrate milestones like birthdays and work anniversaries, which aren’t based on achievement. 

This ensures that your recognition program doesn't just reward the same small group of top performers repeatedly, but also acknowledges growth, effort, and progress across your entire organization.

Step 3: Send employee recognition rewards with Tremendous

Now comes the easy part — actually sending rewards to your deserving employees. 

Tremendous makes this process simple. Companies that use Tremendous save hours of time per month on manual admin. Follow this step-by-step guide to get started.

Set up a campaign template

Log into your Tremendous account to set up a new campaign. Click Campaign templates > Create. Then choose the rewards you’d like to offer employees.

With Tremendous, employees can choose from more than 2,000 reward options, including everything from Amazon and Starbucks gift cards to ACH transfers and charitable donations.

Toggle on or off the retailers and payout methods you’d like to make available to employees.

From there, you can customize your recipient email and landing page templates. Add your company logo, adjust colors to match your brand, and craft a customized message to send with the reward. 

Name and save your campaign so you can skip this step in the future.

Place your rewards order

From the left navigation, click the Send rewards button to start a new order. 

First, select the kind of rewards you’d like to send. Digital rewards are the easiest method —  they land in your employees’ inboxes immediately, no matter where in the world they are. But you can ship physical Visa gift cards to your office if you’d prefer to hand out rewards in person.

If you choose digital rewards, you can choose to send them via email or SMS text. Most HR teams choose to send rewards straight to their employees’ company email addresses.

Next, select the Campaign template you’d like to use. This will pull in the reward selections and email / landing page templates you set up in the first step.

Lastly, choose your Recipients. The fastest and simplest way is to bulk upload your recipient list straight to Tremendous with a CSV file.

After confirming your order details, click Send (or schedule to send, if you want rewards to hit your employees’ inboxes on a specific day). That’s it — you’re all set.

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Step 4: Measure program effectiveness

To ensure your recognition program is meeting its goals, it's important to regularly measure its effectiveness. 

Track changes in key performance indicators (KPIs) related to your program goals. These might include employee engagement scores, turnover rates, or productivity metrics.

Consider a mix of work output figures (like sales numbers or project completion rates), qualitative feedback from managers and peers, and employee sentiment data from engagement surveys. Don't forget to measure program-specific metrics such as reward frequency and distribution across teams. 

Regular surveys can also provide valuable feedback on how employees perceive your recognition program. This qualitative data can offer insights that numbers alone might miss.

Step 5: Request employee feedback

While tracking metrics is crucial, direct feedback from your employees can provide invaluable insights into your recognition program's effectiveness. Regular surveys or focus groups can help you understand what's working well and what could be improved.

Consider asking questions like:

• How clear are the criteria for receiving recognition?

• Do you feel the recognition program is fair and equitable across all teams?

• How valuable are the rewards offered through the program?

• Are there other ways you would like to be recognized for your contributions?

• How has the recognition program impacted your motivation and job satisfaction?

Remember, the goal of gathering feedback is to continuously improve your program. Be prepared to make adjustments based on what you learn from your employees.

Step 6: Continually iterate

The most effective employee recognition programs are those that evolve over time. Use the insights gained from your measurements and employee feedback to refine and improve your program continuously.

This might involve adjusting your recognition criteria, changing the types of rewards offered, or modifying the frequency of recognition. Don't be afraid to experiment with new ideas — what works for one company may not work for another.

As your company grows and changes, your recognition program should evolve too. Regularly revisit your program goals and ensure they still align with your overall business objectives.

Employees generally understand if recognition needs adjustment when business is down. The key is transparent communication from leadership about the company's financial health and any necessary changes to the program. 

When leaders openly share challenges and the reasons behind program modifications, employees are less likely to feel overlooked or undervalued. This transparency can actually foster trust, even when rewards might be less frequent or substantial.

Build and maintain your employee recognition program with Tremendous 

A well-run employee recognition program can drive engagement, boost retention, and improve overall business performance — but only if it’s thoughtfully executed and easy to manage. Tremendous streamlines the entire process, from setting budgets to sending rewards and gathering feedback.

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