Are Points-Based Rewards Programs Really Super Meaningful?

 

When a company budget only allows for nominal reward amounts like $25 up to per $100 person to incentivize or recognize employees, the typical award program options available to them are cash, points for awards and gift cards. Researchers have conducted many studies on the benefits of cash versus non-monetary rewards, but it is rare to find research to compare a points based reward system to other types of awards deliverable. In fact we’ve never seen one.  

The single biggest benefit of using a points based award system is being able to combine budgets from disparate departments, or over longer periods of time which allows the employee to grow their points account so they can redeem for larger more significant awards, and in many cases even travel.  When your total overall awards per employee is a less significant amount ex. $100 or $150 in awards, the excitement and motivation can wane especially considering the time between the issuance of the points and the redemption for a suitable award.

 Another benefit of a points based system is that it allows you to have a large array of award options in one place and promote them often.  Just make sure that if your assortment of awards includes very desirable and costly items that you have enough earning power in the program to be able to redeem for that item, and it doesn’t take an overly long time to earn those points. Check the average expected points issuance cost per employee during the program.  If that won’t allow the average employee to be able to redeem for 75-80% of the items in your catalog, your program is either underfunded or your award catalogs has too many high priced items.  Be realistic, it will save you a lot of complaints down the line.

 If you are going to implement a points based system, you need to be very diligent in your supplier search and be able to compare costs accurately.  Most award companies that sell their points system at low or no cost will make up that price difference making you use their awards in the system.  But those awards are usually priced unreasonably high compared to retail.  Everyone knows about the bank reward points you earn on your credit card.  But anyone you ask will also tell you that the prices of the award items in those programs are ridiculously high.  The best way to test the pricing is to look at the gift card section.  If a $25 gift card doesn’t cost you $25 in points issued, you are probably paying too much.

 Frankly points based systems can be the best type of incentive or recognition program you can implement, if you take the time to think through the steps above.  Here is a blog post we wrote a few years back that will delineate all the caveats you need to consider before you implement a program.  Don’t get caught up in thinking that a points based system will be the cure-all for your recognition needs. There are other ways.

Employee Health and Fitness Programs Will Save You Money

Consider the following:

 

Findings from 56 studies of worksite health promotion programs showed an average: 

• ·     27% reduction in sick leave absenteeism
• ·     26% reduction in healthcare costs
• ·     32% reduction in workers’ compensation and disability management cost claims
• ·       $5.81 to $1.00 ROI ratio 

In addition, with Wellness programs you win both ways: 

Michigan Research center estimates that your company can achieve substantial per employee savings when employees with low risk health remain low risk and when high-risk employee health risks are reduced.

The majority of employers with more than 200 employees now self-insure. When an employer self-insures, the company owns the "health-risk" of its population.

Effective prevention, wellness and improvement of the health of your workforce will result in your company increasing bottom line profits. Many experts agree that the current and future spending on employee health is not only unsustainable, but also poses a significant threat to the overall competitiveness of businesses within the global marketplace. 

Here’s a simple road map to build a great wellness program: 

Invite employers everywhere to participate and challenge them to create Healthy Moments, form Healthy Groups and then develop a timely Culminating Project. 

Healthy Moments are focused on the individual, and are occasions of healthy eating, physical activity or personal/environmental health. ​​ 

Healthy Groups are small groups of employees formed to create  sustainable activities throughout the year.​

Culminating Project is an event or series of events that promote health through the whole company or community. ​

Gift cards are arguably the easiest to use, most cost effective award to use in wellness programs.  They also provide exactly what your employees want. 

Following are some ways companies have used gift card awards to achieve objectives: 

• ·       Increase Program enrollment
• ·       Completing health assessments
• ·       Encourage class involvement
• ·       Achieve weight loss
• ·       Improve smoking cessation
• ·       Increase exercise
• ·       Complete program milestones
• ·       Encourage better reporting
• ·       Increase the use of fitness trackers
• ·       Help employees form “healthy groups”
• ·       Encourage sharing healthy eating recipes 

Wellness programs benefit employees by lowering stress levels, increasing well-being, increasing self-image and self-esteem, improving physical fitness, increasing stamina, increasing job satisfaction, and controlling BMI and blood pressure. 

If you don’t have a wellness program, start one today and watch bottom line profits increase.