IMPLEMENTATIONPerformance Management


By March 3, 2021 No Comments

What is the key purpose of tracking and measuring rewards and recognition?

If you have implemented rewards and recognition programme in your organization, you are one step closer to being an employee centred organization. However, the process of implementing rewards and recognition revolves around tracking and measuring it to ensure the programme’s efficiency. In addition to that, it regulates the distribution of rewards and recognition in a fair and rightful manner.

Apart from a purpose revolving around the organization, tracking and measuring serves a motive of determining if employees in an organization truly values it as a form of genuine acknowledgement and appreciation of their contributions.

How do we regulate the establishment and delegation of rewards and recognition?

With access to increasing number of data, it is crucial to establish KPIs (Key Performance Index) to regulate the program. It is important to have KPIs for every projects implemented that revolves around conceptions of company culture, employee engagement, and staff morale.

Following are list of KPIs that you could take away to help you evoke the success of a program in your organization (Deming, 2019):

  • Key staff retention

How to calculate: Divide the number of employees with major ownership and/or decision-making roles that have been resigned during the assessed period by the total number of such employees at the end of a period.

These employees are usually highly compensated and offered special privileges, but nevertheless, their decision to quit might be influenced by company culture and working atmosphere, which heavily depends on rewards and recognition practices.

  • Retention by different types of employees

How to calculate: Divide the number of employees that resigned during the assessed period by the total number of employees at the end of a period.

Given that the company offers competitive salaries and favourable working conditions, a strategic recognition program is a powerful tool for increasing this KPI.

  • Voluntary turnover by different types of employees

How to calculate: Turnover is the percentage of employees who leave voluntarily in the assessed time period. This indicator does not include terminations, furloughs, and dismissals.

Inconsistent, non-transparent, irrelevant recognition programs stir up dissatisfaction with a job Instead of mitigating the unpleasant moments that are inevitable in every position and in every company. On the contrary, companies who manage to offer timely and meaningful recognition have significantly lower rates of voluntary turnover.

  • Employee satisfaction score

How to calculate: This indicator is calculated on the basis of employee survey results.

Your rewards and recognition program should drive an increase in employee satisfaction scores – otherwise, it should be redesigned.

  • Customer satisfaction score

CSAT reflects how products and services supplied by your company meet customer expectations. It is measured through special, usually automated surveys.

When employees feel appreciated, they will perform their tasks better, which will directly impact the customer experience.

  • Level of absenteeism

How to calculate: Average number of employees multiplied by missed workdays/ Average number of employees multiplied by total workdays.

  • Cost of absenteeism

How to calculate: This indicator includes an average salary for each missed day, loss of potential revenue, and overtime costs. This could help an organization get a full picture of how much the absenteeism costs to your company.

  • Productivity per employee

How to calculate: The most generic formula for calculation of employee productivity is dividing total output by total input.

As a HR consulting organization, we at Alchemy Resources pay huge importance and have implemented these practices in our own workplace. We have our own application; MOMI that is used for employee engagement and performance management to ensure employee satisfaction and transparency; rewards and recognition respectively. The objective of it is to increase productivity of work, engagement and communication with employee, rrewarding employee for their hard work quarterly and annually. This is implemented with fixed KPIs to be achieved beforehand.


  1. Deming, W. E. (2019). Rewards and Recognition Programs – KPIs to Measure and Their Meaning. Online Rewards. Retrieved from

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