What do your employees want in an employee incentive program?
A study conducted by The International Society for Performance Improvement provided some startling findings. Of the respondents, 99% of employees surveyed highly value incentive programs. However, 98% also have complaints about how their incentive program was implemented.
Often times we, at Tango Card, find it boils down to a few different issues – the recognition is subjective, not frequent enough and is not tied to key performance indicators, or the reward options available are boring. Did you know that a survey conducted by First Data found that the majority of respondents chose a $25 gift card over a $50 gift item? Think about it…how many watches do you really need? Boring.
This reminded me of a story. The other day I was talking to someone about their rewards program. What he said really hit home. He said, “I received a reward for being at the company for 5 years. When I went to redeem my reward from the catalog my employer’s rewards program offered, I couldn’t decide what I wanted. None of the options were appealing. I finally settled on a new TV. When I went to read the reviews of the TV, it got only 2 out of 5 stars. I was disappointed.”
We hear that a lot from people that have a rewards program based on a catalog. Often times you’re stuck redeeming your reward for something you don’t want or a gift that is less than impressive. Either way, you are left disappointed. He was. There are better ways to reward someone for being a loyal employee.
So, when you create, review or re-imagine your employee rewards program think about this:
- Are your rewards directly tied to the company goals?
- Are your rewards time-based or behavior-based?
- Are your rewards impactful? Do employees value the reward options? Are they meaningful to the employee?
- And, how much does your rewards program cost in both dollars and sense?
Tackling those questions will help you achieve your ultimate goal – happy, productive employees. Still not sure? Chew on this stat from the same International Society for Performance Improvement study – “When tangible incentives are carefully selected, implemented, and monitored, they increase incentivized work performance an average of 22%”. There’s the beef.