Measuring employee performance and the impact that motivation or rewards programs have on employee performance has traditionally not been easy. However, modern motivation programs and tools allow for fairly easy measurement of the effect that any given motivation program has on employee performance. Thus, it is now possible to calculate the ROI (positive or negative) of your employee motivational / rewards  programs.

The purpose of motivational programs is to Change Behavior.

Keeping in mind that the point of a motivational program is change behavior and improve employee performance, it follows that some rewards programs are more cost-effective at changing that behavior than others.

Few program managers can actually quantify the impact of their motivation programs. This is a problem when trying to get approval to expand existing programs… or defending them when organizational budgets shrink.

How to Measure Motivational Program Effectiveness.

Measuring Employee Performance and Motivation

Here’s how your measure employee performance and the impact that your motivational / rewards program has:

First, take a baseline.

Start measuring the performance/compliance level of your participants before launching your program. In effect, you’re launching your program, but not telling anyone about it.

Then, announce and officially launch your program.

Compare the two periods of time. How much did the behavior change?

Calculating the ROI is a simple matter of looking at how much the measured change in behavior is worth to the organization versus the cost of the rewards program.

Optimize Motivational Programs

Now that you have a quantifiable measurement of program effectiveness… don’t stop there!
It’s time to optimize.

  • Make changes and launch variants of the program.
  • Offer new rewards.

Be sure to always have a “before” and “after” when trying out new program conditions so that you know whether you’re moving organizational behavior in the right direction and by how much.

Want to learn how? Well, you’re in luck because we’ve written a step-by-step guide to Transforming Your Employee Rewards Program.

What’s in the eBook:


  • Automate Manual Reporting
  • Create real-time participant dashboards
  • Gamification & Leaderboards
  • Quickly launch new programs with customizable templates
  • Drive engagement to behaviors that matter
  • Measure reward program effectiveness
  • Optimize Motivational Programs
  • Transitioning to your new system
  • Incorporating legacy, global, and/or offline data sources
  • Organizing 3rd-party employees and channel partners.