Order #347745 Topic: Risk Anaysis

Cost and Benefit Analysis

Javier Caraballo

AMU

Cost and benefit analysis

Introduction

Recognition is the primary means of generating and maintaining a motivated workforce that I will adopt for the organization. It entails formal and informal acknowledgement of the efforts or behavior of employees who support the goals and values of the business. Recognition is one of the key ways through which job satisfaction is achieved, hence, productivity. Secondly, recognizing the value of the contribution of the employees is a key way through which the team improves their performance. However, despite the benefits associated with recognizing the employee’s effort, very few organizations which have adopted the recognition program in their business. The key focus of the study is to assess whether the benefits outweigh the cost associated with the implementation of the program (Ko, & Hur, 2014). The cost-benefit analysis will be the key tool for decision making on whether to or not to implement the recognition program.

Cost of employee’s social recognition program

One of the key costs of implementing the recognition program is time for opening the social software, mobilizing the product as well as adopting the same. The employees take time to interact with the social software and learn how to use them. Hence, the time which might be used for work and productivity is on the other hand spent on the social recognition software (Bradley et al…, 2016).

Secondly, the social recognition software such as wood board and slack inquire financial costs to acquire them. There is a free platform for a small group but for business with more than ten individuals, one need to make a payment of more than $6 for a monthly subscription. Also, the organization must spend some financial resources on train managers on how to implement the social recognition program. The sunk cost of the social recognition is more than $50 which composes of the training cost and subscription to the software. The sunk cost is the total cost of purchasing the product and putting it at use. Finally, social recognition will also be accompanied by gifts and awards to the employee who supports the goals and the values of the organization (Bradley et al…, 2016).

Benefits

Public acknowledgement of the workforce achievement is essential in offering warm feeling which motivates the employees to work. According to behavior psychology, recognition of the employees leads to the reinforcement of good behavior (Eisenberger, Malone, & Presson, 2016). This leads to improvement of individual productivity which leads to a rise in returns. Employees who are recognized not only improve their productivity but are also more likely to stay in the organization and engage with other colleagues.

Secondly, social recognition is helpful in improving employee satisfaction which is vital in reducing employee turnover which saves a lot of costs for training new employees. Employees who are satisfied are less likely to leave the organization, hence, low turnover. This ensures that the productive and experienced employees remain in the organization, hence, efficient workflow in the organization (Ko, & Hur, 2014).

Thirdly, social recognition improves communication, teamwork, a higher rate of loyalty and satisfaction. Hence, employees do not miss work since they are motivated, and they have very minimal stress levels. Also, the safety records are improved and there are minimal job-related accidents (Eisenberger, Malone, & Presson, 2016).

In the modern workplace, it is evident that people are based in a centralized office. Hence, having a program where the team can see, comment and endorse the achievement of employee improve engagement and motivate other to work hard (Ko, & Hur, 2014). Hence, social recognition software is essential in motivating the employees, hence, increasing productivity.

Opportunity cost

Another alternative investment for motivating the employees is giving financial rewards. The motivation in this form of investment will be financial gain which encourages competition and discourage teamwork. Hence, in this kind of investment, there will be minimal long-term financial gains compared to social recognition (Eisenberger, Malone, & Presson, 2016). Hence, the opportunity cost entails the financial resources for rewarding the employees which will be foregone for social recognition.

Conclusion

Hence, we now know the costs and benefits which are associated with the employee’s social recognition. Therefore, we can now make relevant business decisions. Based on the above analysis, it is evident that effective implementation of the program will contribute to the success of the organization (Ko, & Hur, 2014). The monetary cost of implementing the program is relatively small compared to the returns, hence, wise to adopt the same in the organization.

References

Eisenberger, R., Malone, G. P., & Presson, W. D. (2016). Optimizing perceived organizational support to enhance employee engagement. Society for Human Resource Management and Society for Industrial and Organizational Psychology, 2-22.

Ko, J., & Hur, S. (2014). The impacts of employee benefits, procedural justice, and managerial trustworthiness on work attitudes: Integrated understanding based on social exchange theory. Public Administration Review, 74(2), 176-187.

Bradler, C., Dur, R., Neckermann, S., & Non, A. (2016). Employee recognition and performance: A field experiment. Management Science, 62(11), 3085-3099.