Motivational Management: Inspiring Your People for Maximum Performance

When to Recognize and Reward

As a manager, you probably won't have enough of a reward budget to blow money on new luxury cars for your employees, but you will most likely have some funding for rewards. Midsize and larger companies usually budget anywhere from $100 to $2,000 per employee for recognition and reward programs, and sometimes go far higher. Government offices and agencies tend to have smaller budgets—in the federal government it might be more like thirty dollars per employee. Nonprofits, local government offices, and small businesses may have no formal budget for employee recognition and rewards, but still on average they tend to spend at least twenty-five dollars per employee per year. And some small businesses go far higher—witness ...