SHRM recommends investing just one percent of your annual total compensation on recognition.
Employee count × Avg. salary × 1% of total compensation = recommended annual investment in recognition
With Guusto, most of your investment goes directly to your employees since subscription fees only apply for managers who can send rewards. We typically see about 20% of the company being given a budget to start, which would break down as followed:
Employee count × ( Subscription fee × 12 months) × Avg. % of company given budget = Total subscription fees
Recommended investment - total subscription fees = Budget remaining for rewards.
Are you still running to the store for gift cards? Schedule and send up to 1,000 gifts at a time. People leaders have saved up to 20% in admin time by switching to Guusto.
Reinvest your recognition budget in your people. Guusto admins save an average 10-25% on unclaimed rewards.
Choose who can use Guusto to give non-monetary recognition, who gets budgets to send rewards, and only pay for recognition givers. Junior employees can use the system for free.
Many providers require account minimums with locked in contract agreements. Guusto is risk free with a free account option and 60 day money back guarantee on subscription fees.
Recognition-rich companies can reduce turnover by 31% according to Deloitte.
(Employee count × Your turnover rate) × (Avg. salary × Avg. turnover cost )* × (Turnover reduction with recognition) = Return on increased retention
*Cost to replace = (Avg. salary × Avg. turnover cost)
According to a Gallup Workplace report, businesses with engaged workforces have lower employee absenteeism rates by up to 41%
(Employee count × Avg. salary × Avg. absentee rate) - ((Employee count × Avg. salary ) × 41% reduction of the average absentee rate)* = Return on decreased absenteeism
*Reduced absenteeism with employee recognition = (Employee count × Avg. salary ) × 41% reduction of the average absentee rate
Effective recognition increases engagement and can boost productivity up to 17%! Let's use a conservative estimate of 5%.
Employee count × ( Avg. salary × Avg. salary multiplier )* × 5% boosted productivity with recognition = Return on increased productivity
*Avg. revenue generated by employee = (Avg. salary × Avg. salary multiplier)
((Productivity + Retention + Absenteeism - Investment) / Investment) × Conversion to percentage = Return on investment
Your recognition program also creates additional benefits that can amplify the impact of your other people and culture initiatives.
Generate employee referrals
Grow your employer brand
Attract top talent