How to Creatively Structure the Funding of Rewards?

Providing ultimate flexibility to structure the budgets for rewards and recognition programs

The funding of the rewards can be done centrally by the headquarters on a global budget, or there can be geographical distributions by locations and business units. We see examples with clients where they run the programs completely centrally (globally), or a mix of central programs and local (country, region or brand) funded programs.

Our R&R platform can support the budgeting process completely for all levels and maximum flexibility can be accomplished on how the rewards are funded. The detailed budget structure for the funding of the rewards are all topics that will be discussed during the onboarding and implementation of the project.

To better understand each Budget group, please use this table for reference:

*Type of Budget*	*Explanation*	*Approval Level*	*Budget Owner*
Global Budget	The budget is available globally for the whole company. It is available while there is an outstanding amount.	Based on the program’s preference: - Sender’s manager - Receiver’s manager	Global budget pool
Organizational Budget	Each organization within a company gets a budget available for recognition.	Based on the program’s preference: - Sender’s manager - Receiver’s manager	Organizational budget pool by Final Approver
Country Budget	Assign a budget for each active country	Based on the program’s preference: - Sender’s manager - Receiver’s manager	Country budget by Receiver
Budget by Manager on Approval	Assign budget funds for each manager. It requires approval. Deduction of the budget happens upon approval of the award.	Based on the program’s preference: - Sender’s manager - Receiver’s manager * Note: mandatory approval level, and it must be either level 1 or level 2	Final Manager Approver Budget
Budget by Manager on Approval, based on his subordinates	Assign budget funds for each manager. The only difference to the previous is that the budget value is assigned by the number of direct reports to the manager.	Based on the program’s preference: - Sender’s manager - Receiver’s manager   *Note: needs approval level; deduction of the budget happens upon approval of the award.	Final Manager Approver Budget

For more details on how to manage budgets in the system, please visit the following Admin Center article describing all configuration options and steps.

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