Reward ProgramsA blueprint for incentives and

recognition

Incentives

•Occurs before the fact•If you achieve “x” then you’ll earn “y”

Recognition

•Occurs after the fact•Thanks for doing “x”

•Increased ROI•Engagement

What are you looking for?

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Statistics illustrate it best!

• Research shows there is positive correlation between employee satisfaction and customer satisfaction and customer satisfaction and financial success.

International Journal of Hospitality Management

• 80% of sales come from 20% of your clientsPareto Principal

Incentives are based off science

Maslow’s Hierarchy Of Needs And Millenials

Numbers Matter

• “75% of employees say they could be more effective in their jobs”

Public Agenda Forum, 2014

• “85% of employees feel overworked and underappreciated”

Dr. Cooper, 2005

• “99% of employees say its important to them to be recognized for their work”

Websurveyor, 200s

• “70% of unhappy customer abandon vendors because of poor service”

Forum Corp., 2003

• Use real numbers to build an incentive program that drives employee motivation in any and all departments• Sales• Customer service• Warehouse• HR

Build an incentive program

Follow a clear process:1. Identify objectives

2. Define target audience

3. Build budget

4. Develop program structure

5. Designate program admins

6. Select reward and presentation

7. Promote program

8. Track program

9. Distribute awards/ celebrate successes

10. Evaluate/ communicate results

What separate’s the incentive programs that work from the programs that fail

Successful Programs• Only reward achievement of

specified qualifiable goals.

• Enhance goals.

• Are designed with specific goals.

• Progress is constantly measured.

• Include a communication plan with frequent touch points

• Analyzed and refreshed frequently

Programs that Fail• Fail because – participants don’t

know about the program and/or promotions.

• Provide poor- infrequent communication and promotions

• Offer rewards for things that they are expected to do versus increased performance.

Establish quantifiable goals:Objective Subjective Open End Closed EndWhat are you trying to accomplish?

Is the earning opportunity significant enough to drive in the results you want?

Unknown number of winners. Known number of winners.

What do you expect for return on investment?

Is the program the appropriate length to achieve the goals and engage interest of participants?

Anyone who reaches goal is rewarded

Only the top 10 get rewards

What are your company goals?

These programs often have a hard budget – which makes the program have the most impact possible.

These programs often have an easy budget – which makes the program have less impact than the Open End.

Do you have any budgetary constraints?

What would you like for payout rates?

Additional consideration

1. Think about a position and your “best” employee in that position’s job/role.

2. What do you think makes them the best?

3. What are the measurable characteristics that makes them the best?

4. Remember the 80/20 rule – you need to motivate the middle 40% to perform like your best.

In a well designed program the person whom you described as “best” is not who you design the program for. Design for the middle 40% of people to get them better performing

The “price” of incentives

• Your program = rules are created by you

• Programs designed well pay for themselves (ROI)

• No achievement of goals = no payout

• Balance the best reward vs. increased productivity or cost savings

In most cases companies already have the budget for an incentive program, often times it is just going to an insurance company or lost in low productivity.

Make sure the rewards entice participants!

• If you ask people what they want as a reward they will tell you 100% of the time – money.

• They say money because they really want the choice of how to spend it.

Cash rewards – you ought to know this!• Research has shown over and over,

cash rewards don’t motivate extra effort.

• Most people consider cash a compensation and choose to spend it on necessities.

• Cash offers no value to the sponsoring company.

Recently a survey released the findings below. When participants were asked how they spend their “fast cash” rewards responses were”

• Bills – 29%

• Household items – 11%

• Don’t remember – 11%

Incentive reward alternatives to “fast cash”

Stored value cards

• VISA or AMEX Cards preloaded once with a set dollar value (use the cash & trash)

• Custom VISA Cards that are reloadable

• Restaurant and retail gift cards

Be Informed - Reward Card Incentives – Pros/Cons

• Tough to change the amount on the card

• Have ability to create custom debit cards

• Keeps funds out of the checking account (you wont spend money on bills accidentally)

• Participants will see company names when they spend the money (brand recognition)

Continued: Incentive reward alternatives to “fast cash”

Continued: Incentive Reward Alternatives to “Fast Cash”

Merchandise• Brand Name

• Imprinted/ Promotional Merchandise

Everyone loves merchandise rewards!

• Visibility – every time a participant uses the item they will remember where it came from.

• Participants can brag about their reward – most people do not boast how much money they were rewarded with

• 100% customizable catalogues

Incentive reward alternatives to “fast cash”… continued

Travel• Creates memories and unique

experiences

• Participants are extremely motivated

Biggest Mistake Made with Incentive Programs

Failing to communicate!• Everyone enrolled in the program

needs to know exactly what is expected of them during every phase/level of the program and or promotion.

Maintain your participants interest by keeping them aware of their progress throughout the program.

Things you can start doing today!

Start Communicating with Employees• Do they have everything they need to do

their job?

• Is there a better way to perform their job?

• Do your employees know your company goals?

• Do employees know the role they play in helping your company achieve their goals.

• Give out feedback surveys for employees to complete & submit.

Continued: Things you can start doing today.

Recognition- It’s Always Better When It’s Public!• Establish committees/ process

improvement

• Give everyone a clear title

• Create subject matter experts

• Establish and promote mentors

• Reward performance with time off or flex time

• Sponsor company activities – teambuilding fun!

Want a few quality examples of real incentive and reward programs?

We don’t blame you, click the picture to the right for case studies and testimonials feel free to browse the site and check out our testimonials and whitepapers for more info.

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