Rewarding Diverse Groups of Employees

Incentive Magazine recently asked experts from various award companies for their tips on motivating diverse groups of participants.  These companies plan incentive programs for employees with a wide range of backgrounds, interests, roles and, of course, award preferences. While there are obvious differences in employee backgrounds, communication strategies and award delivery preferences, motivating this diversity is more common across these lines than you might think. 

The following list of tips that offers good insight into the things you need to keep in mind when planning your award programs.  Some are more along the common sense side, but others may give you some good food for thought. 

 Understand Your Audience

Survey your employees to find out what is meaningful to them. You will already know much of what they say, but could also come up with some good ideas to put in the program. 

You can take surveys to the extremes with audience persona development, segmentation and generational components, etc., but that type of employee research would not really be necessary for most programs

Effectively Launch the Program

Most companies don’t put as much emphasis on this phase of the reward program as they should. They assume that just the mention of the programs and “what’s in it for me is sufficient to gain excitement at the beginning.  But better launch preparation will provide dividends and actually allow you to spend less on the ongoing communications phase throughout. The importance that your participants put on your program will be in direct proportion the effort and importance you give the launch. 

Clear and Consistent Communications

Communications doesn’t have to be expensive to be effective.  But you do need to take it out of your normal communications efforts and do it as often as appropriate for your organization. Communications about what employees can earn in rewards will be read and retained. If unsure how much and how often to communicate, err on the side of more and more frequently. In addition make sure your messaging is custom and speaks directly to the individual such as program standings, percentage towards qualification, and status updates etc.

Don’t Just Use Digital Communications

It’s natural to use digital as your first option, but old-fashioned printed pieces, posters etc are still very effective and enjoyed by most.  They are also often retained and shared with the family. 

Have a User-Friendly IT Platform

The award industry is loaded with the “best mouse traps” incentive software.  Our advice has always been “Don’t go hunting squirrels with a bear rifle.”  We estimate that UP TO 90% of the features in current software are either not or underutilized. It also needs to be easy to use. 

Recognize and Reward Teams

The incentive industry has known for years that you can get tremendous success by incorporating team awards in your program. Take advantage of it wherever possible, but use it in combination with individual awards.

If Using Travel, Tailor it to Your Employees 

If you using travel as the prominent award make sure you plan it with the participant in mind. Sun and fun can be highly motivation to the younger set, but not so much for older generations who may enjoy sightseeing and new experiences. And, don’t let your C-suite determine your destination based on where the executive wants to go. 

Don't Forget Gift Cards
When it comes to an award that appeals to everyone, gift cards offer the largest choice of any award in the industry. They have become by far the leading option for non-travel awards.

Make Sure It's Measurable 

This tip should actually be number one and not the last.  Without measurement you won’t have much motivation. Not having measurement is like bowling with a curtain in front the pins.  Make sure your objectives are measurable and communicate individual and team performance at the beginning, often in the middle and the end.

Gift Card Rewards Even More Popular in a Touchless World

 

Gift card use in corporate America is having a moment. Actually, as the return to offices has been pushed back by most companies due to another spike in COVID cases, the gift cards moment will likely be extended indefinitely.  

The pandemic has generated a steady stream of stories about managing remote teams, and gift cards are invariably mentioned in most. Gift cards were a common component of employee recognition programs prior to the pandemic, but the forced cancelation of incentive travel programs and gift cards’ ease of use in a world that is not working together has produced a significant increase in their use.

 The Incentive Research Foundation (IRF) reported late last year that since the business world went remote in March 2020, there has been a 26% increase in the use of gift cards in workplace incentive programs. Corporate use of gift cards in the past year range from helping workers equip their home offices, to buying team members lunches for Zoom meetings, stocking up for Zoom happy hours, or providing impromptu spot rewards by managers or in peer-to-peer recognition programs. 

The ability to digitize gift card delivery has existed for some time, but more companies relied on these capabilities during the past year and a half for obvious reasons. The IRF reports that many lessons were learned about the power of virtual engagement:

 “Digital options enable immediate, coordinated, trackable delivery of rewards regardless of geographic location, and groups of employees can receive their reward at the same time such as during a virtual meeting. Digital delivery can also increase control, enhance reporting and reduce overall administration time for program owners.”

Recognizing achievements instantly — or as immediately as possible — is more important in the remote work world. Motivation experts also remind managers that recognizing top performers in front of peers has always been critical. That may have to be done during a virtual meeting these days, but it should be done. If you sponsor a peer-to-peer recognition program, make it easy to use and promote it frequently. Companies risk underutilization of a program if it’s not meaningful and easy to use.

Drive Wellness with Consistent Recognition Awards

 

At the beginning of every year, wellness is a top resolution for many folks.  In fact, research has shown that losing weight and becoming fit are the most common resolutions made for the New Year.  

Changing to a healthy lifestyle is a behavior issue, and a tough one at that.  It’s difficult to start and even more difficult to maintain changing to a healthy lifestyle.  The gyms are full in January and February and by the end of April, back to their normal levels.  It’s natural for people to stop doing what they don’t want to do without some positive reinforcement along the way.  

As many companies have done, consider using consistent and continuous reinforcement along the way.  Minimal gift card awards are idea to promote wellness efforts and keep people involved.  The economic benefits of a long term healthy lifestyle far outweigh the small cost necessary to keep an employee motivated to achieve success. 

We have several award systems available that are easy to implement and administer.  One may be just the one for you. 

Gift Cards Can be Used to Achieve Various Corporate Objectives.

 

Gift cards are used to attain many corporate objectives According to ongoing research done by the Incentive Research Foundation, following is a list of the main reasons given by companies using gift cards

 

Primary Objectives for Using Gift Cards	Ave. % of Responses
Recognize individual or team performance	75.5%
Boost morale	57.9%
Increase or maintain sales	46.4%
Build employee loyalty/trust	35.7%
Build customer loyalty/trust	32.9%
Improve customer service	31.4%
Foster teamwork	25.7%
Improve safety/reduce accidents	25.4%
Start/maintain business relationships	15.7%
Improve employee health/reduce insurance costs	14.5%
Create new markets	11.4%
Other	3.6%

 

 

If you want a truly successful recognition or incentive program, be award neutral in your decision of what awards to use in your program.  When you provide the awards that your people want, they work harder to achieve your objectives in order to attain them.

How Did Getting a Reward Make You Feel?

 

Think about the last time you received a thank you gift for your performance at work.  How did it make you feel?  

Gifts have the power to unleash powerful reactions and sentiments. Tokens of appreciation, whether big or small, can convey gratitude, love, kindness, and comfort. Beyond providing a serotonin surge, in the workplace these symbols of thoughtfulness have been shown to improve engagement and deepen relationships with employees, clients, and other important business contacts. 

Take Advantage of the Power of Recognition with Gifts. 

The benefits are undeniable: 

·       A John Templeton Foundation survey found that 70% of those polled would feel better about themselves if their boss were more grateful, and 81% would work harder. 

·       A Gallup poll revealed that companies that have high employee engagement scores outperform others by 14% in productivity, 18% in sales, 23% in profitability and 66% on wellbeing.  

But there is a challenge. Office rules have changed, but the importance of recognition hasn’t. You need to look for ways to create a culture of recognition and engagement that is future-proof. Don’t let the lack of corporate office time impede your employee appreciation program. By implementing creative solutions, you can keep motivating and engaging your employees through remote gifting and team building – allowing employees to develop stronger bonds while working apart. 

According to a survey by Terminal, 77% of leadership had never managed a fully remote team prior to the pandemic.  Leadership has risen to the challenge of fostering remote relationships, maintaining productivity while still being empathetic to employees’ needs, and inspiring them to continue delivering strong work.

 

How the Pandemic Year Changed Employee Recognition

 

The pandemic has made it very difficult to manage teams and individuals for improved performance.  In the virtual world that sprang up almost immediately out of necessity, it became harder to measure employee’s needs, celebrate successes and make employees feel valued.  At the same time, HR professionals agreed that taking steps to maintain a strong culture that included frequent recognition was paramount.  

And it’s starting to look like the virtual work week, in all or in part, will be a future reality as many companies seem to be moving in that direction with hybrid models of remote work and office time combined even when it’s safe to return to work. 

It might be beneficial to take a look at how businesses have shifted their recognition strategies to meet these future challenges.  As employees continue to work in new and unfamiliar environments, it is critical to find new ways to inspire improved performance while maintaining a strong feeling of connectivity to the company. 

The marriage of clear communications with an ongoing recognition effort can be a differentiator in achieving results.  As it has been from the beginning of the recognition industry, thoughtful and meaningful communications set up the performance you’re trying to achieve and recognition reinforcement can then turn that performance into a habit.  It will help build a more engaged and effective work-home environment. 

In recent surveys the Incentive Recognition Federation (IRF) has noted the following changes in recognition over the pandemic: 

Increased Purchases of Gift Cards and Merchandise

The IRF showed a 26% increase in the use of gift cards in workplace incentive programs since the pandemic started. They noted that: 

“Gift cards, especially, allow for high levels of flexibility, creativity, efficiency and speed when used to motivate important audiences during the pandemic.” 

Much of this was due to incentive travel programs, corporate meetings, and other business events being canceled and replaced with gift cards and merchandise.  The IRF industry outlook for 2021 reports an overall predicted net increase of 33% for gift cards and 24% for merchandise. The average value of a award ranged from $160 to $225. 

Awards Benefited a Wider Audience 

The IRF reports that lower-priced merchandise and gift cards proved to be effective motivators to broader audiences during the pandemic, and many incentive program owners are applying the lessons learned in 2021 and beyond.  For example, in place of expensive travel programs or special events being attended by only a top tier performing group, the size of the top tiers is being reduced and gift cards and merchandise are added at second and third tiers.  The same or fewer budget dollars are allowing for a wider audience.  

During recovery, it might be necessary to rebuild morale, engagement, trust and collegiality, and these are behaviors that the majority of employees must observe to move the needle. Incentive and recognition program owners may be identifying and rewarding many new behaviors that will reestablish new corporate cultures. Many of these efforts could involve smaller, frequent rewards on a larger scale. 

The mainstay of the incentive travel industry has been the high-end sales and distribution programs favored by executives, many of whom attended these trips as hosts.  But by their nature only the top 5% to 10% of their employees were earning the awards.  The middle 60% of producers were often forgotten, which is a distinct missed opportunity especially as companies work to recover and rebuild when every employee needs to give the incremental effort.  Showing all your employees they are appreciated is at the core of what drives performance. 

Expanding Digital Delivery 

More and more companies took advantage of the digital delivery option of awards for obvious reasons.  The IRF reports that many lessons were learned about the power of virtual engagement. 

“Digital options enable immediate, coordinated, trackable delivery of rewards regardless of geographic location, and groups of employees can receive their reward at the same time, such as during a virtual meeting. Digital delivery can also increase control, enhance reporting, and reduce overall administration time for program owners.” 

The IRF is encouraged by companies’ focus on maintaining a positive corporate culture and keeping workers motivated during the pandemic. IRF officials feel that bodes well for incentive and reward use this year and beyond.

The 2021 Incentive Research Foundation Trends Report

 

The recently released 2021 Incentive Research Foundation Trends Report explores how incentive and recognition programs will need to be reimagined to motivate a changing workforce, accelerate recovery, and meet the evolving goals of post-pandemic companies.”

The top trends for incentive, reward, and recognition programs in 2021 include:

Increase in Individual Rewards: In 2020, incentives professionals had a unique opportunity to re-examine the value of individual rewards. Merchandise, points, gift cards, and individual travel rewards proved to be powerful motivators and this trend will continue into 2021.

Large Group Events Deferred – But Still a Priority: Organizations continue to value incentive travel award programs, and many are committed to resuming large group events, despite a series of delays in 2020 and into 2021.

Moving the Middle: Merchandise and gift cards proved to be effective motivators to broader audiences during the pandemic. Looking ahead, smaller reward amounts can be used to “move the middle” 60% of producers and raise the overall performance of the organization.

Personalization & Choice Increase Impact of Reward: Program owners are developing innovative ways to include personalization throughout their programs in order to make a lasting impression on program participants. Increased reward choice, curated selection, and rewards that align with the organization’s culture have maximum impact.

Contracting & Contingency Planning Are More Important Than Ever: The need for planning for disruptions took top priority as a result of the COVID-19 pandemic. Whether designing a large-scale incentive travel program or a local experiential reward, contracts need to be carefully reviewed and contingency plans expanded to anticipate new and evolving disruptions.

Digital Delivery & Virtual Engagement: Many segments of workforce accelerated the move to working virtually during the pandemic, and many people will likely continue to work remotely in 2021 and beyond. Many lessons were learned about the power of virtual engagement and digital delivery of rewards – and their limitations. Incorporating these lessons into communications strategies can help drive program adoption and success.

 

Gift Cards Are Fun Money

 

The 2020 IRF Academic Review offers some interesting peer review research of articles found within the employee engagement industry regarding employee incentives and recognition programs.  Some of the significant points this year that could help inform you on the design and execution of successful programs include: 

• Gift cards have the potential to capture most – and perhaps all – of the well-known benefits of non-cash rewards. Program awardees categorize gift card awards as “fun money.” Many employers find gift cards easy to give and to administer compared to choosing specific tangible gifts or rewards. 
• The greater sense an employee has that a reward they receive is separate from their salary or wages, the greater improvement they showed in their performance. 
• Researchers found that workers classify non-cash, tangible rewards as distinct from monetary compensation, suggesting that delivering non-cash rewards is more likely than cash to result in improved performance.
• Gift cards continue to be widely used as awards, with median gift card amount remaining at $100 
• For many employees, it has become the soft rewards of work such as culture, relationships, trust, and purpose, education and direct management that matter most to them. 
• 94% of executives at top performing firms are strong supporters of incentive programs and consider them a competitive advantage 
• Companies conducting analysis on how programs change behavior increased to 44%, compared to 25% in 2019. 
• While it’s always difficult to establish direct casualty, most organizations measure results based on correlations. Metrics for tangible benefits include decreased staff turnover, increased productivity, sales, revenue, safety, market share, gains in customer satisfaction, and customer acquisition
• Even more difficult to measure, metrics for intangible benefits that include employee satisfaction, collaboration, and impact on company culture 
• Designers are structuring programs with a wider reach, with the goal of each participant receiving recognition or rewards of some kind, rather than exclusively rewarding just top performing program participants.