Alright! You know what you want to do, and how much you are able to spend on it. So, your next question is, how do I budget for this and ensure that I do not exceed my budget? Luckily, we have helpful tools to help you establish just that!
The four cost considerations in your budget include the following:
- System cost: monthly licence fees (This is the standard per person per month fee based on how many users you load onto the system. It is available on our website)
- Rewards cost: if you choose to enable the i Reward Store
- Redemption fees: 1% of the monthly redemptions made on our Reward Store
- Tax: Rewards are considered a fringe benefit, and is therefore taxable. If your company chooses to cover tax on behalf of employees, you'll include this in your budget. Alternatively, employees will cover the tax. Have a look at our Managing tax guide for more information.
Workpoints offers an easy i budget tool (attached below) that will help you work out a budget for your programme! It calculates all the related costs involved, and allows you to determine your annual and monthly budget. Contact us if you'd like to know more about the budget tool. Using our budget tool you will utilise the following information:
- How much you want to spend per employee per year
- The number of activities you’ll add to the system
- The number of times (frequency) these activities can be awarded or achieved
- The number of people that can award / receive each activity
- Will you, or your employees, be covering tax
- The points associated with activities
Based on these variables, you will be able to determine how many points can be assigned to each activity. i You can play around with frequency, rules, and the number of activities until you reach your optimal points value that will be meaningful to your team.
Money isn’t everything, and you don't have to monetise the system. Have a look at our Monetising and allocating points guide for more information.
i Every company is different, and based on size, industry, business cycle etc., there is no ideal budget. Most companies budget an average of between R1000 to R2000 per employee per year on recognition and rewards. But again, there is no perfect answer to what you should do.