ROI and Recognition

After attending a two day program of Dr. Jack Phillips’ “ROI Methodology”TM course it is easy to see how we have done a great disservice to the many clients utilizing recognition and reward programs.

The process developed by Dr. Phillips is “a balanced approach to measurement and includes a technique to isolate the effects of the program, project or solution”. What this process allows recognition practitioners to do is isolate the real effects and impact of recognition practices and programs on performance or upon other HR metrics and indicators.

Using the term “ROI” can be construed to mean one can always create a return on investment percentage. However, the “methodology” piece of the equation highlights a numerical and measured outcome can always be generated even for the intangible benefits so typically associated with recognition.

I am concerned we focus too much on recognition outputs with web-based delivered recognition programs. It is only when we focus on the effectiveness and perception of recognition in the eyes of the recipient as well as the business impact recognition makes that recognition programs and practices will be taken seriously.