One10 has advised employers to budget for recognition that reaches beyond sales teams and top performers, arguing that performance incentives alone can leave other employees with few opportunities to be acknowledged.

In guidance published on October 19, 2021, the company described recognition and incentive programs as complementary. In its framework, incentives focus on defined performance goals, while a broader recognition program can acknowledge contributions across the organization.

Suggested practices included peer-to-peer recognition, verbal appreciation, employee gifts and points that recipients can redeem through a reward platform. One10 recommended using these throughout the year, rather than waiting exclusively for service anniversaries or major business wins.

For budgeting, the article cited an Incentive Research Foundation guideline of 1.5% to 2% of payroll for an enterprise recognition program, separate from incentive and reward budgets. It also pointed to the foundation’s calculator, which uses employee count and a target annual award amount per employee to help frame planning.

One10 connected the discussion with its survey of 3,000 US employees, reporting that 74% said recognition would make them more likely to remain with their employer. The company used that stated preference to support a more inclusive recognition strategy, rather than limiting spending to a small group of high achievers.