Why Measures Matter: Examining the value of ROI.
In the last of our three-part series on strategic measurement for recognition strategies, we’re examining return on investment (ROI) – a measure that indicates the financial return of a recognition strategy. Arguably one of the most prevalent, universally understandable and accepted measures of success, ROI can be calculated differently based on business models, programs, or circumstantial situations.
So why measure ROI? As it relates to your recognition program, understanding whether it is worth the investment is probably the biggest reason. As we shared in Part 2, when evaluating the impact of your recognition strategy, ROO and ROI go hand in hand. It’s great that you may have a program or strategy in place, and you may have some ROO measures that look positive, now the next piece is determining if your strategy is bringing in a return on that investment.
Learn how calculating the ROO and ROI of your recognition strategy will provide the foundation that shapes your company culture for the long-term engagement of your employees.