How to build the business case for employee appreciation

In today’s ever changing, high-stakes business environment, leaders often find themselves at a crossroads when it comes to securing budget and buy-in for people-focused initiatives. Learn how to build a compelling business case for those programs that will help you build a culture of appreciation for your workforce.

Understanding the power of appreciation

Why did we choose to focus on appreciation? Research indicates a strong correlation between appreciation and increased employee engagement, which ultimately drives business performance. Keep in mind the true meaning of appreciation – not just recognizing people for their actions, but appreciating them as complete, complex individuals. When businesses can create a culture that considers employees’ unique needs and preferences, the Haas School of business found they can generate a 43% increased effectiveness and productivity.

Data-driven approach

Did the impact of appreciation on business surprise you? There is so much evidence that culture has a huge impact on business. Here are some key examples:

• Companies that lead the charge with employee engagement see 5-7% higher business performance. (Reward Gateway | Edenred, Economic Value Study, 2024)
• 78% of employees who frequently feel appreciated are motivated, compared to only 37% of those who are not. (Reward Gateway | Edenred, Economic Value Study, 2024)
• Cost of 1% turnover is $250,000 for every 1,000 employees.
• Less than 40% of those who felt appreciated considered leaving their roles, compared to 81% of those who rarely or never did. (Reward Gateway | Edenred, 2024)

Crafting the business case

So you're excited to make your mark on the organization by implementing or improving a program. First, here are six key areas to think through before you even put your business case together.

1. Define the Problem: Clearly articulate the issue at hand. Are you facing high turnover rates, low engagement or a toxic workplace culture? Understanding the root cause is essential for framing your argument.
2. Know Your Audience: Tailor your message to resonate with different stakeholders. Understand their priorities – whether they are focused on financial outcomes, employee satisfaction or brand reputation.
3. Know your Blockers: Recognize potential obstacles that may hinder your proposal. Have previous initiatives failed? Understanding these challenges will help you address concerns proactively.
4. Set your goals: Align your appreciation initiatives with broader business objectives. For instance, if turnover is a concern, emphasize how appreciation can enhance retention rates.
5. Market your plan: Frame your initiative as a solution to a pressing problem. Use storytelling techniques to engage your audience and make your case relatable.
6. Data, data, data: Present compelling data that supports your case. Highlight the financial implications of turnover and the cost-effectiveness of investing in appreciation initiatives. 

Presenting your business case blueprint

It’s time to present potential solutions.

Once you have established the need for employee appreciation initiatives, consider mapping solutions based on their value, versus their complexity. This approach allows leaders to prioritize initiatives that are both impactful and feasible. Presenting multiple scenarios, including a phased approach to investment, can demonstrate thoughtful planning and a commitment to achieving measurable results.

1. Set the scene

Kick off your business case presentation by getting right to the point. Answer these two questions for people:

2. Present the evidence

Make sure you come to the presentation with more than your opinions: Have the data that is most relevant to your proposal. Bring along three or four pieces of evidence that will speak to your audience. Tell them the story that will help them see what you see and feel the concern that you have.

Headlining evidence

Examples:

• Our turnover has increased by 10% in the last year.
• Our Glassdoor score has dropped to 3.2.
• Low attendance at company events and team socials.
• More negative comments on company communications.

3. Define the goal

Next you want to share your plan with the group, make it clear and highlight accountability. Ensure your goals clearly align to internal goals – your mission, your EVP and brand goals.

How will we do it?

Examples:

• Establish Appreciation as a cultural focus with a strategic plan to improve it
• Create a clear plan of communication
• Review existing benefits against our employees’ current needs

How will we measure it?

Example:  

• Quarterly OKR reviews
• Turnover rate
• Glassdoor score
• Attendance rates at events
• Company communications responses

4. Present the solutions

You have your evidence, you know where the opportunities lie and the goals you want to achieve. The next step is highlighting the solution you are recommending. As you arrive at this step, hopefully thinking through your blockers in advance, you may have needed to get aligned with key stakeholders – your leadership and IT teams, along with procurement or employee focus groups. You may want to plot potential solutions on this grid and present an option from each to show you have thought through multiple possibilities.

Presenting your solution in phases can make it easier for the audience to understand and easier to accept. This shows you aren’t looking to put all your eggs in one basket, but that there will be opportunities to evaluate and course correct as you go.

Example Project

Phase 1

• Recognition and Reward (non-monetary)
• Communications
• Supporting love and belonging, self-esteem

Phase 2

• Recognition and Reward (include monetary)
• Communications
• Wellbeing
• Supporting love and belonging, self-esteem, safety and security

Phase 3

• Recognition and Reward
• Communications
• Wellbeing
• Discounts, Benefits, Payments
• Supporting self-esteem, love and belonging, safety and security and physiological needs

Handling budget and costs

This can feel like the hardest part of the presentation. You may feel inspired by all that you can do, but you know once you put a number on the screen, people may be quick to forget all that is possible and prepare to tell you ‘no’. Here are some ways to present costs and budget with context, so your idea has the best chance of moving forward.

Remember, it’s better to present the total cost than to have the team be surprised by costs they hadn’t anticipated.

How much budget have we already allocated for appreciation?

Example: We currently have $1m going into employee benefits annually – know the budget breakout of recognition strategies, rewards and any current markups/fees associated with rewards.

Where could we “repurpose” budget to finance this?

Example: We have determined that our current length of service program is not highly regarded by employees and only impacts 7% of employees each year, so we could repurpose this budget.

What is the cost per employee

Example: This is $60K/year or $5 per employee/month or $60 per employee/month

Include the cost of doing nothing

Example: $60K a year is less than 2% of the cost of turnover. If we can contribute to retaining two employees each year, this initiative will pay for itself.

Make your pitch

Now that you have presented all that is possible, make your recommendation. If you did your pre-planning, maybe you even have some allies or champions in the room that know what you are asking for and agree it is worth the investment. But be ready for questions. Socializing the plan in advance will help you get a handle on where there may already by buy-in or pushback and what might get asked so you are ready.

Our suggestion

Example:

• $60,000 p/a ($5 PEPM)
• 3-month implementation
• 2-year contract
• Medium complexity
• Scalable: e.g. Global

Why is this the best option?

Example:

• Immediate need
• Market-leading supplier
• Integrations with HRIS

What are the desired outcomes of this option? 

Example:

• 70% participation rate
• 5% decrease in turnover year one
• 10% increase in employee satisfaction scores

Outline the plan

Let's assume your presentation worked as you expected. You get a “Yes!” Now you’ll need to be ready when they say, “Where do we go from here? What’s next?”

Here is an example of a timeline visual with key project milestones.

Building a compelling business case for people-focused initiatives, particularly those centered around appreciation, requires a strategic approach. By understanding the importance of appreciation, leveraging data and presenting a well-structured proposal, leaders can confidently advocate for initiatives that enhance employee engagement and drive business performance. As the workplace continues to evolve, prioritizing appreciation will not only benefit employees, but also contribute to the overall success of the organization.

For those looking for additional support on this topic you can download our blueprint above and review this webinar. Additionally, the Economic Value Study from Reward Gateway | Edenred provides valuable insights and statistics to support your journey in advocating for appreciation in the workplace. Plus, check out our Budget Hub for more expert advice on getting your program off the ground.

Learn more about how Reward Gateway | Edenred can help you make your corner of the world a better place to work.