Despite the numerous benefits that recognition programs offer, many organizations still struggle to gain management support for serious investment. The key is to reposition recognition not solely as a human resources initiative, but also as a strategic business decision. Here's a four-step guide to convincing your management to allocate more budget to recognition.
1. Present concrete data
To convince management, recognition must be linked to the indicators that executives already track: productivity, engagement, retention, and profitability. Recognition has a direct impact on a company's financial results. Replacing an employee can cost between 30% and 50% of their annual salary for an entry-level position and up to 400% for a highly specialized role. This cost is in addition to the loss of productivity associated with disengagement: according to Gallup's State of the Global Workplace 2024 report, this represents US$438 billion globally.
Companies with strong recognition strategies are four times more likely to have high engagement rates, 40% less turnover, and 31% higher productivity. By improving recognition by just 15%, an organization can increase its profit margins by 2%. Furthermore, 92% of employees say they are more likely to repeat an action for which they have been recognized.
The numbers speak for themselves. Presenting this data transforms recognition into an investment with measurable returns.
2. Find allies
Change never happens alone. Before approaching management, it's wise to rally colleagues who share your vision of a culture of recognition. Together, you can define a common goal: to create an environment where every employee feels seen and valued.
The goal is to generate enough internal momentum for the idea to become unavoidable. Organizing discussions, sharing testimonials, or devising small symbolic gestures can be enough to demonstrate the tangible effects of genuine recognition. These allies will be your ambassadors when the time comes to defend the project to management.
3. Show examples of the competition
Concrete examples are often more convincing than statistics. Presenting what other companies, especially competitors, are doing shows that it is a widespread strategic practice with a real impact, in addition to allowing management to better visualize the changes you want to make.
At CIBC, for example, recognition is integrated throughout the employee experience, from personalized backpacks at reception to the distribution of virtual thank-you cards. At Kombi, a Montreal-based company, birthdays are celebrated collectively each month with a cake—a simple ritual, but one cited by employees as a significant gesture.
For an example of automated recognition, you could present management with the Accolad case study on the Quebec company Café William. Accolad also offers virtual greeting cards and recognition services.
These initiatives prove that a recognition program doesn't need to be complex to be effective. They also illustrate how recognition contributes to employer branding, retention, and job satisfaction. Using these examples helps to speak the language of leaders: that of competitiveness and organizational reputation.
4. Propose concrete initiatives
Arriving with specific ideas strengthens the credibility of your approach. Describe how the program could work: peer recognition, use of a digital platform, implementation of an events calendar, automation, etc. Detail the recognition criteria, governance, responsibilities, and the proposed budget.
Next, present a clear plan: timeline, necessary resources, and success indicators. Explain how results will be measured using engagement surveys or performance analyses. Always frame recognition as an investment, not an expense. The goal is to demonstrate that your proposal is based on structured and realistic thinking.
More than an HR practice, a legal obligation
Beyond arguments related to performance and corporate culture, recognition is also increasingly framed within a clear legal context. Law 27, which modernizes the occupational health and safety system, strengthens employers' responsibility in preventing psychosocial risks. This reform underscores the importance of addressing factors related to psychological health, of which a climate of recognition is an integral part.
HR teams can therefore use this law to demonstrate that recognition is not only a lever for mobilization, but also a preventive measure promoting well-being and mental health at work.
Recognition, an investment that pays off
Convincing management to invest in recognition requires both rational and human-centered arguments. Data proves its effectiveness, examples demonstrate its applicability, and concrete proposals facilitate implementation. A well-designed program reduces turnover, strengthens cohesion, and improves overall performance. All that remains is for us to wish you good luck!
Pascale Hubert
Web Editor