A New Age of Incentives, Where Do We Go From Here?
October 12th, 2009A New Age of Incentives
Companies that once engaged their staff and top clients using high-end incentive programs are now in search of more subtle methods of motivation. Two key factors contributed to this industry turmoil. First, the Obama administration qualified “incentives” as an evil and frivolous tactic. In a world where companies need to regain consumer trust and confidence, using “irresponsible incentives” as solid corporate strategy is a self-inflicting wound. Secondly, we have record high unemployment.
How then do we in the industry proceed while protecting our corporate clients from being shunned? Where do we redirect our incentives efforts? The solution is not simple and tests the real ingenuity of incentives firms. To be successful, incentive firms should first look at the emotional makeup of American society today and the sudden shift in corporate and employee value propositions. I highlight some of these key values below.
Are incentives coming back anytime soon? Yes, but not until unemployment is reduced to 7%, they will have to take on another form. During this crisis employers have taken advantage of their staff, reducing head counts faster than they did slow-moving inventory. This will take a toll on employers as the market regains momentum and employees look for new challenges elsewhere. At that moment, incentives will regain their initial traction, but incentives houses must learn to continue to work with companies during this critical period so they can come out on top when traditional incentives return.
How can we continue to work with companies during this lull? What is today’s incentive? Here are a few ideas:
1. Employee time-off incentives for performance. Allow employees some time off for completing their tasks successfully or making their numbers.
Incentives companies could approach companies with this lead-in incentive and come full circle with the program adding to it individual opt ins for their spare time recreational programs at minimal costs. Focus this recreation on gatherings, family picnics, etc.
2. Flexible work. Allow employees to design their own schedules based on meeting sales objectives.
Focusing on how to deliver this incentive while ensuring continued hard work from these employees, could also lead to spare time activities designed with the company in mind. Perhaps even within company grounds to add to motivation.
3. “Giving back” incentives. Companies ask employees to share their favorite charities piggybacking on these as a reward for employee performance.
Designing this “giving back” incentive is a sign of a new era as people reevaluate their life perspectives. Leveraging press on these could make this incentive a win-win for both company and employee. Go ahead and help your employees help others, it’s an honorable incentive, but still needs a structure and point system.
4. Release to volunteer. As an incentive give people the time off to volunteer for their favorite charity.
A great way to give employees a value-added incentive which promotes trust in your company while delivering much needed positive press. Pay your employee to volunteer to clean up the dirties beaches of
5. Cross train. Give your more mature staff the opportunity to work with younger staff. Let the mature staff learn about new media and the younger staff about how to harness its power with a strong business focus.
We are working with incentives houses to regain their traction with customers. Our global experience can help you integrate your staff across borders and help you enhance the more human aspects of incentives. Feel free to ask us about any questions you may have, we want to keep this a sharing experience, not a sales experience.