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The 11 best employee recognition software platforms for 2023 (Reviewed and ranked)
Are you trying to attract and retain top talent in today's fast-paced and highly competitive job market? The truth is, it has become more challenging than ever before. Businesses continuously search for methods to retain top talent, and the employee recognition platform has yielded the most fruitful results.
Employee recognition platform are cloud-based tool for rewarding employees for their work or contributions to the project's success, its basically a software that helps you effectively manage your employees recognition. You can recognize employees by verbal praise, promotions, or special bonuses.
You cannot ignore the best employee recognition platforms if you want to retain top talent. This is why businesses have focused on using the best employee recognition platforms and their features. Now you can use the best employee recognition software platforms to conveniently and effectively recognize and reward your employees.
However, you might face one more problem: overwhelming employee recognition software options in the market. It can be challenging to choose the right platform for your business. Don't worry; we have compiled a list of the best employee recognition platforms. We have selected these platforms based on pricing, ease of customization, and usability.
This list is all you need, whether you are a new company with a small team or a well-established organization with a large number of employees and remote teams. Best employee recognition platforms can help you improve work culture, boost employee engagement and retain top talent.
So, without further delay, let's check out the 11 best employee recognition platforms organizations can use in 2023.
Criteria used to select the best employee recognition program
We have used the following criteria to choose the best 11 global employee recognition platform of 2023:
●Ease of use was the first factor in evaluating the best employee recognition platform for employee recognition. We considered the user experience and user-friendly interface of each software.
●Secondly, we looked at the customization options. Businesses need to make changes to employee recognition programs to suit their needs. The best employee recognition software allows you to customize the brand and culture.
●We also analyzed their features to determine the capabilities of the software. We focused on gamification, social recognition, meaningful rewards, peer to peer recognition, and performance-tracking features.
●We understand that pricing is essential when choosing the right employee recognition software. We evaluated the employee recognition software based on their monthly, yearly, and custom subscription packages. We also considered the fees charged for using extra features.
●Lastly, we compared their customer support, specifically responsiveness, availability, and the quality of assistance provided.
Here are a list of employee recognition providers:
#1. Nectar
Nectar is one of the best employee recognition software that helps companies foster an appreciative and actively involved work environment.
We found the platform an excellent solution for businesses seeking to keep top talent and promote a positive work environment based on our evaluation of its usability, adaptability, cost, and customer support. It is also great for peer to peer recognition.
The ease of use of Nectar is one of its greatest assets. The platform's ease of use and widespread popularity can be attributed to its friendly UI and well-thought-out structure.
In addition, the software comes with extensive training materials and tutorials that facilitate the platform's easy adoption by companies.
Nectar also provides extensive customization options, letting companies design reward and recognition programs that perfectly fit their organization's culture and guiding principles.
The platform enables businesses to design a recognition programme tailored to their specific requirements and culture by providing flexible reward options, social recognition features, and other tools.
Nectar pricing
Nectar offers affordable subscription plans that can be scaled to meet the needs of companies of any size. It is best for teams of 50-2,000 employees.
The subscription-based nature of the platform makes it easy for companies to scale their recognition programs as they expand, all with up-front pricing and no surprises. It does not have contracts or implementation fees.
You can check their website for more details. It has two pricing options:
Standard: $2.75 per user/month
Plus: $4.00 per user/month
Pros of Nectar
●Customizable rewards, and you pay for those rewards only that are claimed
●Special discounts for organizations with more than 500 employees
●Free trial available
Cons of Nectar
●Limited reward selection
●You need to book a demo and pay to use premium features
#2. Assembly
Assembly may be best known for its meaningful rewards and recognition software, but they now offer various tools for engaging and motivating employees.
It offers communication productivity and automation tool. You will get team retrospective templates, employee surveys, and a digital central hub similar to an intranet. You can also improve peer to peer recognition with this software.
Assembly's main product, the employee recognition platform and reward gateway, helps HR departments foster positive work environments by facilitating various reward and recognition programs.
Workers use this employee recognition software to appreciate one another for their big and small successes.
These acknowledgements can then be shared with the rest of the business, like a social media site where employees can comment and share their thoughts.
Of course, customizable rewards should reflect the standards you've established for the company. Workers who are acknowledged are often given points by their coworkers that can be redeemed for various incentives.
Assembly stood out due to the flexibility of its rewards system. You can set up your own rewards, like team building events, sleep-in days, choosing the workplace music for the day, etc., or you can let workers choose from a curated catalogue.
This employee recognition software is best for teams of 10 to 2,000 employees. All of these features make Assembly one of the best employee recognition platforms.
Pricing Assembly
Assembly allows startups and smaller businesses to test the waters before committing to a full rollout. If you decide to upgrade to the paid features, you'll be happy to know that the price is competitive compared to similar platforms.
Pricing options:
Monthly plans: $2.5 (team) and $4 (business) per employee per month
Long-term contract: You can also order a long-term contract (it must be for 12 months or more)
Pros Assembly
●Excellent features
●Good value for money
●Customizable rewards
●Usable for free without any credit card or demo (up to 10 employees)
Cons Assembly
●Coins and points expire by the end of the month
●Limited availability of SSO
#3. Bonusly
Bonusly's large rewards catalog means that it's likely you'll be able to find something that appeals to you and your remote employees. The software simplifies international reward distribution through the use of gift cards.
The employee recognition platform prioritizes the streamlined custom rewards procedure. Bonusly is an excellent tool to help you shout from the heavens about a deserving employee's accomplishments (safely within the confines of the platform).
Achievements can be shared with the whole business or just a select group of employees. It can be helpful in boosting peer to peer recognition.
Furthermore, you need to focus on meaningful recognition. Meaningful recognition can boost engagement and productivity. Likewise, timely recognition is also important. You can make it possible by promoting a recognition-rich culture and peer to peer recognition. And recognition tool like Bonusly can help you to do it. It can send scheduled recognition messages. You can write personalized recognition messages and send them at once. It can link recognition with employee satisfaction.
This rewards platform simplifies the process of incorporating incentives into the workday for supervisors. You can quickly "deliver" custom rewards on recurrent occasions, like birthdays and work anniversaries, or hand them out to the whole team or specific individuals on the spur of the moment. It also boosts peer to peer recognition. Peer recognition works best to boost employee engagement.
Each employee is given a monthly allowance that can be used to acknowledge and celebrate a colleague's work, in addition to top-down gifting. It is best for teams of 50-10,000.
Pricing Bonusly
Contact the Bonusly team for custom pricing and a free demo. You can also choose from the following two plans:
Core: $3 per user/month, billed monthly. Or $2.7 per user/month, billed yearly
Pro: $4.5 per user/month, billed monthly. Or $5 per user/month, billed yearly
Pros Bonusly
●Available worldwide
●Employee feedback system
●Offers discounts for education or non-profit organizations
●Available in multiple languages (i.e., English, French, German, and Spanish)
●Easy rewards and recognition
Cons Bonusly
●Rewards and recognition platform is based on gift cards, donations or cash
●Limited customization
#4. Motivosity
Only when workers are actively engaged can the benefits of employee recognition software be fully realized. In the case of Motivosity, employees sign in, tag a coworker to be recognized, explain why they recognize this person, relate the recognition to a business value, select a reward amount, and submit.
The rest of the employees can see this award, contribute to the total amount, like it, and give their remarks. Thus, it is a great tool for improving peer to peer recognition. It is a straightforward yet efficient method for an employee recognition platform.
This rewards and recognition platform has put extra effort into the little things to make the software as smooth as possible. For example, you can make comments that won't be visible to the public until the day of a birthday celebration. As a result, you only need to check in once a month to wish everyone a happy birthday.
Motivosity believes motivation and appreciation should flow from the bottom up. Because of this, the software is easily available to employees. It is because it has a mobile app. It offers easy integration with popular workplace messaging platforms like Slack and Teams.
You can also use an intuitive, social network-style user interface rather than a stuffy, businesslike one. Money is being given to workers so that they can reward one another rather than receiving all of their rewards from management.
You can use this rewards platform for teams of 10 to 500 employees.
Pricing Motivosity
It has various pricing options. You can check all of the packages on their website.
Pros Motivosity
●It combines employee engagement strategy, peer to peer recognition and rewards platform
●It provides insights into the most recognized employees
●Available on mobile phones, desktops and other apps like Slack and Teams
Cons Motivosity
●Complex integration with swag stores
●Limited gift options
●Buggy Slack integration
Use dollar-based rewards platform and do not have point based system.
#5. Bucketlist
Bucketlist is a well-known employee recognition, rewards, retention, and productivity software. The company has also put money into a rewards catalog that employees can redeem for experiences as varied as flying lessons and gift vouchers. Such rewards are important for employee retention.
Bucketlist allows you to make your own internal awards system to show appreciation to your staff. Customers have suggested things like a "Safety Prize" and new takes on the time-honoured "Employee of the Month" and a "peer recognition" program, to name a few.
They release a steady stream of updates and improvements. One of our favourites is a platform for hosting and tracking physical and digital events. These team-building activities work equally well for an online party as they do for a face-to-face get-together. Thus, improving peer to peer recognition.
Bucketlist's ability to work with other products is a prominent selling feature. You presumably already know that enthusiastic participation from employees is crucial to the success of any reward system. Employees can integrate Bucketlist with Slack, a mobile device, Outlook, Gmail, etc. It is best for teams with 100 to 1,000 employees.
Pricing Bucketlist
You can use a free trial of Bucketlist. You can also request a demo to get pricing.
Pros Bucketlist
●Offers competitive pricing
●Add features based on customer suggestions
●Availability of multiple awards
●Improves peer to peer recognition
Cons Bucketlist
●Available in the English language only
#6. Blueboard
Blueboard stands out from other recognition and rewards platform because it prioritizes events over gift cards and swag when rewarding and recognizing employees. Employees who reach specific benchmarks are rewarded with experiences such as family trips, enrollment in classes related to their hobbies and interests, or even special nights in the company's hospitality suite. It leads to better peer to peer recognition.
The platform tries to provide memorable experiences that employees can share with their loved ones, and the sheer breadth of its offerings is mind-boggling once you visit its custom rewards software.
You can schedule the automatic delivery of certain rewards on specific occasions, such as birthdays and anniversaries. The final step is for you to select the milestone and the corresponding prize.
Blueboard's compatibility with other famous business productivity platforms is also notable. The excitement and buzz from rewarding and recognizing workers can be amplified by sending a notification to a channel where most water cooler conversations already occur.
Regarding incentives, Blueboard tracks and logs everything imaginable. Automatic reports can be generated and displayed regularly to show the status of reward distribution, completion, and participation.
This recognition and rewards platform includes insights into the program's effect, scores, quotes, and shareable stories of employee recognition. It is one of the best employee recognition platforms for businesses with 200 or more employees.
Pricing Blueboard
The price can range from $19,500 to $37,50. You can request a demo for a custom offer.
Pros Blueboard
●Rewards do not expire
●Accurate photograph and description of each experience
●Excellent customer support
●One of the best experiential platform
Cons Blueboard
●You need to set a budget at the start
●Not suitable for companies with less than a hundred employees
●Currently, it is very North America centred
#7. Empuls
Empuls is an employee engagement platform that facilitates two-way communication, input gathering, and recognition of stellar performance.
Empuls' primary advantages lie in the fact that it facilitates communication, encourages employee feedback, and back up incentive and reward programs. It also facilitate peer to peer recognition.
You can use the contact and collaboration features of Empuls to maintain harmony within your organization. It's a great place to share important business news like upcoming events and policy updates with your staff and customers.
In addition, it facilitates communication amongst team members who share common hobbies or are working on similar projects through posting, commenting, and interacting. With Empuls, you can manage access permissions, issue alerts and notifications, and take other actionable steps.
Empuls uses gaming and other incentives to excite your employees about coming to work. In this way, you can programmatically award employees for achieving predetermined goals and objectives at work. You can set it to alert you on special days, like your birthday or the anniversary of your employment, if you so choose.
Empuls' gamification features, such as exercise scores, recognition badges, and individualized leaderboards, encourage friendly user rivalry. To further encourage participation from your team, it provides a worldwide reward gateway. You can use it if you have 25 to 100 employees.
Pricing Empuls
You can get the following pricing plans from Empuls:
Free trial
Starter: $2.5 per user per month
Proficient: $4.5 per user per month
Pros Empuls
●Free 30-day trial
●Employees can participate in surveys
●Comprehensive software
●Easy to use with a modern user interface
Cons Empuls
●Service speed issue in the mobile app
●You cannot change the subdomain after it has been assigned
●Do not allow point sharing between employees
●Limited reward options
#9. AgilityPortal
Apart from adopting arguably the finest name for an employee recognition platform, the AgilityPortal platform has expanded over time to cover many employee engagement features. One concept that has been driving this development is the creation of a central hub for discussions of culture in the workplace.
Spaces and galleries significantly add to their emphasis on company culture. Users can post, sort and share group photos. Imagine you are planning a business outing or off-site training. Photos would be uploaded to an album and shared with the team on the same site where they are recognized for their efforts. Thus, it also supports peer to peer recognition features.
This leads us to the tool's section on recognizing and rewarding workers. The foundation of any internal recognition program is a firm grasp of the organization's principles.
You'll specify them and the desirable traits and actions in the application. After that, the employees can join the platform, and you're ready to go. Employees can recognize one another, disseminate company updates and highlight recent successes in a public online forum.
Last, AgilityPortal provides the standard collection of reporting and analytics options. Nonetheless, we respect the effort made to include cultural references. Examples include providing reports about the company values that individuals have embodied in their recent performance and the standard recognition and experiential rewards activity. You can also use it to give service awards.
Pricing AgilityPortal
They have four distinct packages for all types of businesses:
●Small (<100 users)
●Medium (100-399 users)
●Large (400-999 users)
●Enterprise (1,000+ users)
They also offer a free trial to test the features.
You can request a quote from this page. More importantly, there is a 30-day money-back guarantee (no questions asked!).
Pros AgilityPortal
●Offers mobile application
●Notifications available on the web and mobile app
●Focus on company culture
●Leaderboard and points (gamification)
●Send appreciation to colleagues
●Employee of the month
●Badge rewards
●Quick and reliable customer support
Cons AgilityPortal
●You need to get a quote as the price is not mentioned on the website
#10. Awardco
Awardco stands out in particular for its integration with Amazon and its rewards gateway, but it is also fascinating due to the many modules it offers. All the standard mechanisms for public kudos, such as a social media feed, shout-outs, and a points system, are bundled into a singular interface. However, they also have different modules, including "Celebrate," "Earn," and "Manage."
The purpose of the celebration event is to recognize employees on the occasion of a significant professional or personal achievement. Compared to the significance of achieving a specific tenure in the company or receiving a promotion, Awardsco found that traditional rewards, such as gift cards, company swag, or plaques, could feel bland.
Then there's the Earn section in the software. You can connect specific incentives to a specific goal, whether an individual's or a group's. You can use it as a reward for doing well or joining an internal initiative. If an employee meets 90% of their monthly KPIs, for instance, they may receive a certain number of points, or they may be awarded a gift card for visiting a seminar and then passing along what they learned to the rest of the team.
Lastly, in the "Manage" section of the portal, you can monitor your ongoing service awards and recognition programs. You can use it to establish a spending limit and deal with taxation associated with employee rewards gateway and recognition costs.
Pricing Awardco
Cons Awardco
●Available in multiple languages
●Amazon integration
Cons Awardco
●The mobile app is just a Progressive Web Application
●Only Amazon-delivered products are available for rewards
●Gift cards are non-refundable
●The pricing is not available on their website
#11. Guusto
One of Guusto's main selling points is that it's possible to use the service eternally for free with a single user account rather than paying for advanced social features like feeds, company core values, and individual user budgets. You will just spend on the gift you send. You can use its reward gateway to your benefit.
The first step, whether giving a gift or signing up for a free account, is choosing a store from which to send the gift card. They also offer a customization option where the receiver can select a product from any of their retail partners. You determine the reward's monetary worth, the number of awards, and the eligibility window. If the employee does not claim the gift within that period (typically between one month and a year), the gift is refunded in full.
After that, you can make the present unique by including a handwritten message, choosing an appropriate acknowledgement reason, and uploading a photo. After that, you can send or print the digital gift card to the recipient in person. Then, you can specify the gift's recipient, choose to alert the recipient's superiors, and either set a delivery date or send the present instantly. These final actions also allow you to send gifts to multiple recipients by uploading a .csv file. Choosing a gift and a recipient is simple on this platform.
You can also send service awards from this platform.
Pricing Guusto
Guusto is currently offering three distinct offers. You can also contact them to get a custom offer.
Free: Single users just pay for employee rewards!
Essential: Starts from $2.25 per employee per month
Premium: Starts from $3.5 per employee per month
Pros Guusto
●It is not a point platform. You can distribute gifts with a real dollar value.
●It has digital gift cards
●Partnered with One Drop Foundation to provide clean drinking water
●Remote work friendly
Cons Guusto
●Merchant selection is focused on clients from US and Canada
●It offers custom and Amazon rewards to the rest of the world
It supports only CAD and USD currencies
What difference does employee recognition platform make for businesses?
If you believe your employees are only interested in the salary and ping pong table you provide them, think again. There has been a recent shift in company priorities, with more and more businesses prioritizing employee appreciation and fair compensation. After all, you wouldn't be able to accomplish anything without your employees' hard work and dedication.
Gratitude and incentives for employees should never be a ploy to increase quarterly revenue. Instead, showing appreciation should be routine. Regular recognition and service awards for effort will yield greater returns than occasional output bursts.
5 workplace employee recognition platform benefits that you cannot ignore
#1. Retains top talent
Is it difficult for you to keep your finest employees? Many businesses in your situation could relate to what we said before. One's likelihood of quitting their present job quadruples if they are dissatisfied with their work there.
Check-in with the group and figure out what's going wrong. A common cause is feeling unappreciated or unrecognized for one's efforts. Peer recognition is also an important factor.
It's essential to make a good impression during the hiring process and show potential employees why they should work for your business. Still, making them feel appreciated and wanted once they've settled in is essential. Peer recognition features can help in this regard. You should constantly work on retaining employees, starting with the hiring procedure.
You may be able to solve your staffing issues by making employee rewards a priority and instituting a variety of reward systems. You can stop wasting time and money continually recruiting new workers if you keep your word during the hiring process. Employees should be rewarded regularly because doing so is much more cost-effective than hiring a replacement.
In addition, employees who stay with the company for an extended period gain valuable experience and abilities that can contribute to its expansion. That fresh hire has the potential to become an authority in their field. Likewise, it is important to give service awards regularly.
#2. Increase employee engagement
Disengaged workers cost the UK economy an estimated £340 billion annually. That's a big figure to take in, so we did the legwork to make it more concrete for your company: The staffing business loses an average of £3,103 for every employee who isn't fully invested in their work.
Not only are they ineffective at their jobs, but they also miss more work due to illness and must be replaced more frequently. Say "hello" to high human resources expenses (at least 20% of an average salary is needed to attract a new employee) and "goodbye" to skilled workers.
Fortunately, the answer is yes! Nothing forces it to be this way. It's not necessary to offer outrageous benefits like annual Bahamas vacations to attract top talent.
Many businesses have trouble maintaining enthusiastic workers. How do you keep employees motivated after the initial excitement has worn off, and they have proven their worth?
By not assuming their continued availability. Disengaged workers typically fail to see their efforts' significance because they believe they are not appreciated. They receive compensation, but so does everybody else. Moreover, we are all seeking a sense of uniqueness and distinction.
A negative vibe can spread rapidly if employees aren't invested in their work. It can also affect peer recognition. People can do as little as possible because they don't believe it will make a difference, and as a result, consumers are met with disinterested workers who can't wait to clock out.
Implementing employee rewards and commendation programmes can help boost morale and productivity. If your staff is genuinely invested in their work, they will bring their A-game to the table, which will, in turn, elevate your company. They'll learn new things on their initiative because they're interested in and committed to the company's goals. You should also consider integrating the software with the reward gateway.
#3. Helps to boost employee morale
Given how much time we invest in our jobs, showing up for work every day can become routine. When you aren't compensated fairly, you may begin to feel underappreciated. It's not helping confidence at all. Taking the time to reward employees individually is a wonderful example of recognizing and rewarding employees.
Recognition software can also be used to casually promote policies and habits designed to improve wellness at work. Reminders can be sent straight to staff recommending they take a break, stretch their legs or drink some water to help employees focus on their mental health and facilitate a positive workplace culture.
It's a fundamental part of caring for your staff to acknowledge the effort they've put in. When individuals put in long hours for what they perceive to be a little reward, they tend to burn out and quit or become less motivated. You can avoid these negative feelings by proactively rewarding workers with things that mean to them.
#4. Increase productivity
Some employees might be motivated to stop putting things off and get things done if they knew they would be rewarded for going the extra mile as part of a team. It's vital that the payoff isn't up for grabs here; it's a certainty. What are the parameters of employee appreciation, and what are the expectations for those who put in the extra effort?
It's common sense that people are more likely to repeat an action if praised and rewarded.
Reward employees for work that counts and helps you reach your long-term objectives. They will be further motivated by seeing how their efforts contribute to the whole, making them feel valued and appreciated.
#5. It improves workplace culture
In search of a means to boost morale and, more significantly, maintain that boost? The best employee recognition platform is more effective than sporadic perks and team-building activities.
When morale is low, and productivity is low, it's likely because workers don't feel like they're being appreciated for their efforts. This may contribute even if they don't complain about it. Directly requesting something isn't the same as our unconscious pleasure in receiving it.
Start commending workers who exemplify the business's values and contribute to the desired culture. That means it's essential to recognize workers for their interactions with customers and one another.
It won't be long before word of your company's newfound focus on employee satisfaction spreads beyond your office's boundaries. Your company's customer relationships will benefit from your employees' increased positivity and happiness.
In this case, joy permeates throughout the team. Employees recognize the efforts and return the favour. So, you should celebrate employee accomplishments. Likewise, it is also important to track employee performance.
Important employee recognition statistics and research for 2023
Business success is increased by 12 times for companies with better employee recognition programs.
The feedback, one-on-one meetings, and annual evaluations of employees' abilities should all include a section dedicated to recognizing their achievements. The importance of employee recognition software in your culture and company can be reinforced through regular performance conversations that include recognition.
Employees are more apt to contribute again if they see the impact of their work and are acknowledged for it. So, the best employee recognition platform can help you to do this. Likewise, you can also use the employee experience platform to get higher employee engagement. You can monitor how many employees use the software for managers and employees alike.
Key takeaway: Recognize employees based on long-term business outcomes.
More than 52 percent of employees say they would be more productive if they received more recognition from their boss.
Employees, particularly supervisors, should be able to see and participate in the recognition process. Workers want to know where they excel, where they can make improvements, and how they can get help. Managers can see how often workers publicly recognize one another and how much that affects employee engagement.
Key takeaway: Recognize employees publicly and keep the process simple.
The level of employee dissatisfaction drops by 28.6 percent in companies with a rewards and recognition program in place.
Reward systems should take into account more than just accomplishments. With a well-thought-out commendation program in place, it's simple to recognize employees for doing things like consistently high-quality work, trying out new responsibilities, or going above and beyond for the team.
Key takeaway: Focus on recognizing the most productive employee behaviours.
Organizations can reduce voluntary turnover by 31% by using the employee recognition program.
There are a few places to begin if your company does not have an official recognition programme. You can learn if your employees are happy and how you can better your strategy through one-on-one meetings or by conducting an employee survey. If so, ensure workers know the program and how to join.
Key takeaway: Keep communication channels open to keep the employee recognition platforms alive.
One study found that 41% of people wished they received more recognition from their immediate coworkers.
Getting noticed by one's managers is essential, but so is getting noticed by one's colleagues and coworkers. Your team members will benefit greatly from frequent chances to boost one another up and express gratitude. Employees' peers typically have greater input into their effort and morale than their superiors do.
Key takeaway: Always value your employees and treat them as important team members.
What should you look for in an employee recognition platform?
It's crucial that a culture of appreciation permeates the entire company. Rewarding employees for a job well done should be a standard practice at your business. However, if you don't have the proper resources, launching employee recognition platforms and getting buy-in from your staff can be challenging.
In order to ensure the greatest possible success of your employee recognition programs, consider the following features before making your final decision.
Supervisors must be made aware whenever one of their staff members receives external recognition. Managers can join in the happiness of their employees by receiving notifications via email, Slack, and other apps. In addition, analytics tools allow managers to see how often particular fundamental values are displayed across teams and how often recognition is given.
A successful platform for recognition will encourage participation and interest. Therefore, workers will feel more of an obligation to make use of it. Likes, comments, pictures, and GIFs all contribute to a sense of community and celebration as users scroll through their social newsfeeds.
Any recognition article can be connected to a company, group, or personal objective with the help of an integrated recognition tool. In addition, you can design award certificates that reflect your organization's ethos. Employees are more likely to act in accordance with the company's values and goals when they see those values and goals being put into practice.
Employees are more motivated and have a greater sense of purpose when they are publicly recognised by their peers. The proper medium ensures that acknowledgement is widely shared. Effective methods of aligning workers across teams share success stories with the entire organisation
To summarize, you need to consider the following things when choosing an employee recognition platform:
●Highlights achievements with alerts and analytics
●Enable you to create a fun and interactive space for employee recognition programs
●Ties recognition to key goals and company values
●Help to improve recognition across the organization
8 best practices for the employee recognition program
Developing a program to recognise and reward employees is just one of many responsibilities you have to deal with on the job. It's simple to fall into a number of traps when first purchasing and launching one of these programs and their accompanying tools. After surveying dozens of HR managers about their employee recognition solution, here are some of the most effective methods we've found.
Management support
In some instances, we've seen managers receive thousands of dollars or more each month to distribute among their employees, but they simply don't have time to do so. The vast majority of individuals merely require a little prodding. In your employee appreciation dashboard, you can see exactly which employees could use a little encouragement. Likewise, the employee recognition software should also focus on management support.
First and foremost, you should explain to your supervisors and staff exactly why this programme is so crucial from the beginning. Provide data demonstrating this effect on efficiency, loyalty, and participation. The secret is making managers realise how this will help them succeed in their endeavours and grow as leaders.
Time management
Human resources departments are extremely active. There is a fire practice every day. Moreover, Human Resources is frequently understaffed and overworked due to its status as an expense centre. As we've seen, even a successful employee rewards and recognition programme can fizzle out after a while. To maintain a thriving programme, set aside time monthly or yearly (put a calendar invite to block off one hour per month).
Easy integration with employee software
The ability of your employee recognition software to connect with employee software is more crucial than the initial investment cost. Your programme has a much lower chance of success if workers need to use a separate login for it.
Recognition is more important than money
We found it somewhat counterintuitive that the value of the employee rewards offered is irrelevant to the success of these initiatives. As a matter of fact, the value provided to employees has a negligible relationship to the effect the program has on employee retention and engagement. Best employee recognition platforms work by recognising an employee, particularly when the recognition frequently comes from peers.
Stop overthinking
Don't second-guess yourself. Everyone has been there. We have an idea for a new project, but we have no idea where to begin or what metrics to use (we hope this page will assist!). Countless "strategy talks" have been devoted to solving these problems. However, the best course of action is to do exactly as your selected provider instructs. They'll advise you to get there if you're serious about becoming a pilot. Getting caught up in the details of who should get what benefits and why is easy. What do we suggest? Get it done! It will surely help to increase employee retention.
Focus on company culture
Many businesses see platforms for rewarding and recognising employees as a means of mending divisions in company culture. However, if your company is consistently ranked in the bottom quartile of companies in culture on review sites like Glassdoor, more drastic measures may be necessary before you can adopt these programmes successfully.
It is not just about managers
Ensure that your managers and "workers" are familiar with one another. The alternative would be a slap in the face to those workers who already feel unheard and unimportant.
Improve employee engagement
A company's employee engagement platform and employee recognition software should be complementary tools. Think about how employee recognition works into their annual reviews, the company's overall ethos, and the standard engagement metrics you already collect.
Providing a platform for employees to give gifts to one another is only part of what this answer needs to accomplish.
Wrapping up
Employee recognition platforms should be your top priority for attracting and retaining top talent and increasing employee engagement. We have reviewed and ranked the best employee recognition software available in the market.
This comprehensive list of the 11 best employee recognition software for global companies for 2023 can help you to make the final decision.
Getting employee recognition software is the first step.
The next step is to implement it and get desired results. You can do it by following the best practices for the employee recognition program.
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Setting up a new business is no walk in the park, and when it comes to financial support small business owners often struggle to find the help they truly need.
A good question is whether you are confident your small business can survive its first five years—or even the first year. According to the U.S. Bureau of Labor Statistics, 1 in 5 small businesses fail within the first year, often due to poor financial planning and lack of strategic support.
Starting a business in 2025 means navigating a rapidly evolving economy, rising costs, and tighter competition. While passion and innovation are essential, your financial plan will ultimately determine your success.
Even the most exciting ideas can fall apart without a clear strategy for managing cash flow, expenses, and funding.
This article will guide you through building a brilliant financial plan tailored for small business success in 2025.
Whether launching a new venture or refining your current operations, you'll learn how to align your budget with your goals, forecast more accurately, and gain the financial stability needed to grow.
With the right plan, you'll gain investor confidence, make smarter decisions, and future-proof your business for the challenges ahead.
What is a Financial Plan for a Business?
What is a financial plan for a business? It's a strategic tool that helps determine whether a business idea is financially viable and provides a roadmap to maintain long-term financial health.
A financial plan is a crucial part of any business plan, offering clarity and direction as the business evolves. It typically includes three core financial statements: the income statement, the balance sheet, and the cash flow statement.
Each of these sections comes with a brief explanation or analysis to help interpret the numbers.
Together, they provide insight into profitability, liquidity, and overall financial stability—key metrics every business needs to track.
Who Needs a Financial Plan?
Financial planning isn't just for the wealthy—it's a valuable tool for anyone looking to take control of their financial future.
Regardless of your income or life stage, having a structured financial plan helps you set clear objectives, stay focused, and feel confident about your path.
A personalized financial plan offers more than just guidance—it acts as a roadmap to help you navigate major life events and unexpected changes.
Whether saving for a home, preparing for retirement, or adjusting to new financial responsibilities, a solid plan ensures you're making informed decisions.
You'll find financial planning especially beneficial if you're:
- Buying your first home or upgrading your current one
- Experiencing a significant change in income or expenses
- Starting or growing a family
- Thinking ahead to retirement and long-term savings
- Organizing your assets through estate or legacy planning
A proactive approach to your finances helps you reach your goals and builds resilience, allowing you to adapt to life's curveballs with greater ease and security.
Understanding the Role of a Financial Plan in Business Success
If you're starting a new business and wondering what a financial plan is, it's more than just budgeting—it's a strategic roadmap that outlines how your business will manage income, control costs, and reach long-term financial goals.
A financial plan brings clarity and control to your operations by linking daily decisions to your company's vision.
The importance of financial planning for small businesses cannot be overstated. According to the U.S. Bureau of Labor Statistics, around 20% of small businesses fail within the first year, often due to poor financial management.
A solid financial plan can help avoid this fate by providing insight into cash flow, funding needs, and operational priorities.
So, what is a financial plan example?
It could include projected income statements, balance sheets, cash flow forecasts, expense breakdowns, and growth targets. These documents serve internal strategy and inspire confidence among lenders, investors, and stakeholders.
A good financial plan helps businesses:
- Manage cash flow more efficiently to avoid shortfalls
- Set realistic goals and map out scalable growth strategies
- Present a strong, credible financial position to stakeholders
Ultimately, a financial plan enables small businesses to stay agile, make informed decisions, and achieve lasting success—even in uncertain economic environments.
Why Is a Financial Plan Important to Your Small Business?
A solid financial plan not only boosts your confidence in managing your business but also gives you clearer insights into how to allocate resources effectively.
It reflects a commitment to responsible spending and demonstrates your company's ability to meet its financial responsibilities.
With a financial plan, you can assess how specific decisions may impact revenue and identify when it's appropriate to use reserve funds.
Also, a financial plan is a powerful asset when presenting your business to potential investors. It highlights how your organization manages expenses, generates income, and plans for growth.
Most importantly, it provides a clear picture of your current financial position and outlines what's needed—through sales or investment—to achieve key financial goals.
Financial Plan for Beginners?
1. Develop a Sales Forecast
A critical component of any business financial plan is the sales forecast—an estimate of the revenue your business expects to generate over the next three years.
Start by building a spreadsheet that outlines each quarter of your fiscal year. Include key columns for product or service names, unit prices, units expected to be sold, and projected revenue.
If your business is already up and running, review past sales reports to identify seasonal trends or growth patterns you can use to inform future projections.
For startups without existing sales data, begin by calculating your cost of production per item or service. From there, estimate how much you plan to sell based on market research, competitor benchmarks, or industry demand.
Not confident in your manual forecasting skills? There are plenty of tools and software solutions available that can help you automate and refine your sales projections with greater accuracy.
A sales forecast estimates your future revenue and is crucial for building a solid financial plan.
Here's how to create one:
- Set up a spreadsheet to track products, prices, and projected sales.
- Use past sales data to identify trends (if your business is already operating).
- Estimate unit sales and pricing based on market research for new businesses.
- Forecast monthly revenue for the first year, then annually for Years 2 and 3.
- Use tools like QuickBooks or LivePlan to improve accuracy.
- Compare your forecast to industry benchmarks to ensure it's realistic.
This helps demonstrate your business's potential profitability to investors and lenders.
A well-prepared sales forecast isn't just for internal planning—it also builds confidence with potential investors or lenders.
It demonstrates that your business has a clear growth trajectory and can generate consistent revenue, making it more attractive for financial backing.
2. Outline Your Business Expenses
After completing your sales forecast, the next step is to create a detailed breakdown of your business expenses.
This section shows investors that your business can realistically afford to produce its products or services and maintain profitability. Ideally, your total expenses should remain below your projected revenue.
Start by identifying all your business costs and categorizing them into fixed and variable expenses:
- Fixed costs remain consistent throughout the year—examples include rent, insurance, and salaries.
- Variable costs fluctuate depending on operations and sales volume, such as marketing, shipping, or raw materials.
While some costs like production or rent may be straightforward, others—like taxes or maintenance—may require estimation.
Your expense forecast helps assess financial feasibility and ensures you're planning for both predictable and unexpected costs.
3. Build a Cash Flow Statement
A cash flow statement outlines the movement of money into and out of your business over a specific period.
It's a key component of your financial plan, as it shows whether your company generates enough income to cover its operating expenses and obligations.
The goal is to maintain positive cash flow, which means more money is coming into the business than going out. This signals healthy financial management and ensures you can pay bills, invest in growth, and handle unexpected costs.
To create a cash flow statement:
- Use historical profit and loss records to calculate incoming revenue and outgoing expenses.
- If you're a startup, make realistic projections using your estimated sales and known expenses.
- Always account for potential payment delays from clients or vendors. Adding a buffer for late invoices helps you avoid cash shortfalls.
Being conservative and realistic in your estimates helps you prepare for real-world financial conditions.
A clear cash flow projection gives investors confidence in your business's financial stability and helps you stay in control of your financial health.
4. Create an Income Projection Forecast
An income projection, a profit and loss forecast, provides a forward-looking snapshot of your business's expected revenue, costs, and net profit over a specific period. It's a crucial part of your financial plan, especially when presenting to investors or lenders who want to understand your business's long-term viability and profitability.
This document includes your projected sales, the direct costs of producing those goods or services, and your estimated operating expenses. The result is a forecast of your expected net income—essentially showing whether your business will be profitable.
If your business is already up and running, focus your forecast on the upcoming year.
For new ventures, consider projecting income over two to three years to demonstrate sustainability and growth potential.
To build an accurate forecast:
- Use sales forecasts and expense estimates as the foundation.
- Base your projections on industry trends and historical data, if available.
- Factor in seasonal variations, economic conditions, and potential business developments.
- Consider using financial forecasting software or consulting a financial advisor for added accuracy.
A well-prepared income forecast builds credibility and can significantly improve your chances of securing funding or investor interest.
Download the free financial projections template excel for a great starting poin.t
5. Build a Forecasted Balance Sheet
A forecasted balance sheet offers a snapshot of your company's projected financial position by outlining what it owns (assets) and what it owes (liabilities).
This document is essential for investors, lenders, and stakeholders to evaluate your business's financial stability and net worth over time.
Assets represent everything your business owns that has value, such as cash, inventory, accounts receivable, equipment, real estate, and intellectual property. Liabilities include financial obligations like loans, taxes, unpaid wages, or outstanding vendor payments.
To create your forecasted balance sheet:
- Start by listing all expected assets, including cash balances, office equipment, inventory, property, and receivables.
- Next, outline projected liabilities, such as credit lines, loan repayments, outstanding invoices, or payroll obligations.
- Subtract total liabilities from total assets to calculate your projected equity or net worth.
A positive balance sheet—where assets outweigh liabilities—demonstrates financial health and signals to investors that your business is solvent and capable of meeting its obligations.
Conversely, if liabilities exceed assets, it may raise red flags about your ability to manage debt.
Having a clear and realistic balance sheet projection not only builds credibility but also helps you plan for future capital needs and operational investments effectively.
Here is a simple balance sheet template excel, feel free to use this financial projections template excel.
6. Identify Your Break-Even Point
Understanding your break-even point is crucial for evaluating the financial viability of your business. It represents the level of sales needed to cover all your expenses—where your total revenue equals total costs. Only after crossing this threshold will your business begin generating profit.
Determining your break-even point gives you a clear financial target and helps you make informed pricing, budgeting, and investment decisions. It also reassures potential investors that your business can become self-sustaining within a reasonable timeframe.
To calculate your break-even point, subtract your variable costs from the unit selling price, then divide your total fixed costs by that result. The formula looks like this:
Break-Even Point = Fixed Costs / (Unit Price – Variable Cost per Unit)
For example, if your fixed costs are $100,000, and each unit you sell brings in $50 in profit after covering variable costs, you'd need to sell 2,000 units to break even.
Most successful businesses break even within two to three years. If your projections show it may take significantly longer—say five years or more—it could signal the need to reassess your business plan or reduce operating costs.
Also consider including an exit strategy in your financial plan. This helps mitigate risks and outlines a path to minimize losses should your business not perform as expected.
7. Plan for Contingencies + (contingency plan template word)
Every business faces unexpected challenges—from sudden market downturns and supply chain disruptions to equipment failure or economic shifts.
That's why it's essential to build contingency planning into your financial strategy.
A contingency plan includes setting aside a financial buffer (often referred to as an emergency fund) to cover unforeseen expenses without derailing your operations. Many financial experts recommend having three to six months of operating costs set aside as a safeguard.
Beyond savings, consider preparing alternative revenue streams or flexible cost-reduction strategies you can implement quickly if revenue drops. This might include renegotiating vendor contracts, scaling back non-essential spending, or leveraging credit lines responsibly.
A solid contingency plan increases investor confidence and gives your team peace of mind—knowing you're prepared for the unexpected.
It's not just about weathering storms, but staying agile and resilient enough to pivot when necessary, keeping your business on track for long-term success. Download out free contingency plan template word.
5 Steps of Financial Planning
1. Define Your Financial Goals
Start by asking yourself: Where do I want to be in 5, 10, or even 20 years? Whether owning a home, retiring early, travelling the world, or funding your child's education, having a clear vision helps shape your financial plan.
Break down your aspirations using the S.M.A.R.T. method:
- Specific: Clearly state what you want (e.g., "Save for a down payment on a house").
- Measurable: Assign a number or milestone (e.g., "Save $30,000 in 3 years").
- Attainable: Make sure the goal is realistic based on your income and expenses.
- Relevant: Focus on what matters most to you and your long-term lifestyle.
- Time-Based: Set a target date for each goal to stay accountable.
Use a digital notebook or spreadsheet to list and categorize your goals into short-term (1–2 years), mid-term (3–5 years), and long-term (5+ years). This will help you prioritize where to start saving and how much to allocate monthly toward each goal.
A great way to boost your financial literacy is through online MBA finance programs. These programs offer practical, flexible education tailored to real-world business needs. Whether you're planning for growth or just managing your first year of revenue, sharpening your financial skills gives you a competitive edge and a better shot at long-term stability.
2. Assess Your Risk Tolerance
Understanding your risk tolerance is essential when creating a financial plan that suits your lifestyle and goals.
Risk tolerance is your comfort level with investment ups and downs—how much loss you're willing to accept in pursuit of higher returns.
Your tolerance depends on factors such as:
- Your age – Younger individuals can typically handle more risk since they have time to recover from market fluctuations.
- Your financial goals – Short-term goals often require safer investments, while long-term goals may benefit from more growth-focused strategies.
- Your income and savings – The more financial stability you have, the more flexibility you may feel when taking risks.
- Current economic conditions—Inflation, interest rates, and political stability can all affect how much risk you're comfortable with.
Use an online risk tolerance quiz or calculator to get a quantified score. This helps align your investments with your comfort level and expected returns.
Consider this score when choosing between conservative options like bonds, balanced mutual funds, or higher-risk investments like stocks or crypto.
Understanding your risk tolerance ensures your financial strategy is realistic, sustainable, and aligned with your peace of mind—even when markets fluctuate.
3. Analyze Your Cash Flow
A solid financial plan starts with knowing exactly where your money is going.
Cash flow analysis tracks the money coming into your accounts (income) and what's going out (expenses). This step helps you identify spending patterns and areas for improvement.
Start by reviewing your last 3–6 months of bank statements.
Categorize your spending into:
- Essential expenses - Rent or mortgage, utilities, groceries, insurance, transportation.
- Discretionary expenses - Dining out, subscriptions, shopping, entertainment.
Once categorized, subtract your total expenses from your income to see your net cash flow.
Use budgeting apps like YNAB, Mint, or Excel templates to automate your tracking. Set a monthly review reminder to stay accountable.
After this analysis, you may find non-essential costs that can be reduced or eliminated. Even small changes—like cutting unused subscriptions or reducing takeaway meals—can free up cash for savings, investments, or emergency funds.
Understanding your cash flow gives you control over your finances, prevents overspending, and ensures your financial plan is based on accurate, real-world data.
4. Protect Your Assets
Protecting what you own is a critical part of any strong financial plan.
Start by calculating your net worth—the total value of your assets (home, car, savings, investments) minus your liabilities (loans, credit card debt). This gives you a clear picture of what needs protection.
Once you understand your financial standing, evaluate your insurance coverage:
- Homeowners or renters insurance for property and personal belongings.
- Auto insurance with sufficient liability coverage.
- A Personal Liability Umbrella Policy (PLUP) for extra protection in case of major claims or lawsuits.
- Life insurance—either term (for affordable temporary coverage) or permanent (whole, universal, or variable universal life), depending on your long-term needs and family situation.
- Long-term care insurance to protect your retirement savings from healthcare-related expenses later in life.
Review your insurance policies annually or when your life circumstances change (e.g., marriage, new home, children).
Speak with an independent insurance advisor to ensure you're neither underinsured nor overpaying.
With the proper protection in place, you're shielding your financial future from unexpected events—and giving yourself peace of mind.
5. Evaluate Your Investment Strategy
Your investment strategy should align with your financial goals, timeline, and risk tolerance.
Begin by identifying your approach:
- Active Investing involves hands-on management, frequent trading, and efforts to outperform the market. This strategy demands time, expertise, and often higher fees.
- Passive Investing focuses on long-term growth by tracking market indexes (like the S&P 500), often through ETFs or index funds. It typically involves lower costs and less frequent trading.
- Define your investment goals - Are you saving for retirement, a home, or college tuition?
- Consider your time horizon - The longer your timeline, the more risk you may be able to take.
- Evaluate your current portfolio - Is it diversified? Are your investments aligned with your goals?
- Rebalance your portfolio regularly to maintain your desired asset allocation.
If you're unsure which path suits you best, consult with a financial advisor or consider a hybrid approach, where part of your portfolio is passively managed and another part actively managed.
Choosing the right strategy is not just about returns—it's about aligning your investments with your life goals and peace of mind.
Key Challenges Small Businesses Face When it Comes to Financial Planning
- Unpredictable Cash Flow - Many small businesses experience irregular income streams, especially in the early stages. This makes it difficult to forecast revenue and plan for future expenses. Late payments from clients or seasonal fluctuations can leave businesses scrambling to cover costs.
- Limited Resources and Budget - Small businesses often lack dedicated financial experts or advanced tools. With limited time, staff, and money, financial planning is either put on hold or handled by someone without formal training in accounting or finance.
- Lack of Financial Literacy - Many small business owners are passionate about their product or service but may not fully understand financial statements, forecasting, or budgeting. This can lead to poor decision-making and prevent the business from growing sustainably.
- Difficulty Accessing Capital - Securing loans or investment requires detailed financial plans and projections. Small businesses that struggle to create professional financial documents may find it hard to gain the trust of investors or lenders.
- Overestimating Revenue, Underestimating Expenses - A common trap is being overly optimistic. Overestimating how much revenue will come in and underestimating how much things cost can result in shortfalls and missed targets.
- Economic and Market Volatility - Changes in interest rates, inflation, or supply chain disruptions can derail financial forecasts. Small businesses are more vulnerable to external shocks, making contingency planning even more important.
- Scaling Without a Plan - Rapid growth without financial controls can be just as dangerous as stagnation. Businesses that grow quickly may overextend themselves, take on too much debt, or fail to manage increased operational costs.
Best Tools and Resources for Small Business Financial Planning
Here's a list of some of the best tools and resources for small business financial planning, including top-rated financial planning apps that help manage budgets, cash flow, forecasting, and more:
#1. QuickBooks
Best for: Accounting & financial reporting
A go-to tool for small businesses, QuickBooks helps with expense tracking, payroll, invoicing, and generating financial statements. It also offers forecasting tools and integrates with many other apps.
Why it's great: Easy to use, scalable, and trusted by millions of businesses.
#2. Xero
Best for: Online accounting & collaboration
Xero is a cloud-based accounting software ideal for small businesses that want real-time collaboration with bookkeepers and accountants.
Why it's great: User-friendly interface, strong financial reporting features, and great for managing cash flow.
#3. Wave
Best for: Free accounting and invoicing
Wave offers free invoicing, accounting, and receipt scanning tools. It's perfect for solopreneurs and freelancers just starting out with financial planning.
Why it's great: No monthly fee, intuitive layout, and ideal for basic financial needs.
#4. LivePlan
Best for: Creating business plans & financial forecasting
LivePlan helps businesses build professional business plans and financial projections. It's a great tool if you're pitching to investors or lenders.
Why it's great: Pre-built templates, industry benchmarks, and easy forecasting features.
#5. PlanGuru
Best for: Advanced forecasting & budgeting
PlanGuru is designed for in-depth financial analytics and 3–10 year forecasts. It's more advanced than most small business tools and ideal for growing companies.
Why it's great: Budgeting, forecasting, and reporting all in one platform with powerful analytics.
Wrapping up
Financial planning isn't just for big corporations—it's the secret weapon that helps small businesses thrive.
When you take the time to understand your costs, stay informed, monitor your cash, and invest in solid systems, you set your business up for long-term success. The earlier you start building that financial foundation, the stronger your business becomes.
You don't need to be a financial wizard to make smart choices.
You just need the right mindset, some good habits, and a commitment to staying proactive. With these ten steps in place, you'll be ready to lead your business with clarity, confidence, and control.
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Jill Romford
I am a digital nomad, lover of exploring new places and making friends.
I love to travel and I love the internet. I take pictures of my travels and share them on the internet using Instagram.
Traveler, entrepreneur, and community builder. I share my insights on digital marketing and social media while inspiring you to live your fullest life.
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