After speaking with numerous marketing, franchise and operations managers over the past month I’m picking up on a common thread and general attitude between companies. The idea that it isn’t exactly prime time to be ramping up incentive tactics.

 So why is it that these market leaders are hesitant towards new ideas and incentive solutions?

 Look at it this way. 

When times are tough, morale is low thus reflecting on poor work performance. The most important thing to keep your company afloat is your employees ideas, creativity, loyalty and drive to succeed. What better way to increase work performance than to implement some form of loyalty and recognition program. 

In addition to this, what are these companies doing to stimulate sales through their channel and retail markets? Whilst their above the line sales approach may well be bringing foot traffic through the door – what approach is being taken to convert this traffic into sales? 

This is a marketplace for incentives and the time is right to be implementing and ramping up incentive tactics. 

I believe vouchers are a great way to reward customers for their loyalty and employees for their achievements. They are easy to manage and you can find them virtually anywhere. You can buy them from convenience stores, supermarkets, petrol stations or order them online, and most retailers have their own vouchers available.

However, be careful when you chose a voucher as some vouchers are good, some are bad and some could be a nightmare for you to manage and the recipient to use.Good vouchers are flexible, easy to use and offer great choice.

Vouchers that are generally well received are those that can be redeemed at various locations and retailers, and can be used to purchase a wide variety of products.Take Coles Myer gift cards for instance. They can be used at Myer, Target, Coles supermarkets, K-Mart, 1st Choice, Liquorland, Vintage Cellars and/or Office Works. This voucher offers variety and therefore makes it appealing to a wide demographic.  I am not promoting this gift card but I think it’s a pretty good choice on offer.

Conversely bad vouchers are those that offer limited or no choice and can only be redeemed at specific store locations. As well, some vouchers can only be used by the person who’s name the voucher was issued under. Whilst I understand there may be security issues with certain vouchers, especially travel, they can be difficult to manage if the recipient of the voucher isn’t fully aware of the terms and conditions.

And last but not least we have the ugly vouchers. Those that not only have limited choice or few supplier and/or reward options but also have a limited timeframe to be used. They may also involve a one-transaction rule whereby allowing the individual to use the credit in one transaction only or the balance forfeited. No one likes receiving them, they are a hurdle for both parties and your reward could potentially be perceived negatively.

It’s important to have an understanding of who the recipient of the voucher is so you can chose the voucher accordingly. Ensure the brand and the products offered by the supplier are relevant and enticing for the recipient.

I suggest you carefully read the terms and conditions of the voucher before you make your selection. If your reward is nationwide ensure the voucher can be used in metro and rural areas. It would be an added bonus if the vouchers could be used to redeem purchases online.  Just make sure delivery of items is timely. Play it safe by using well-known brands, retailers that have an extensive network and choose a voucher that is relevant to the person you give it to.

When people think of incentive programs the general consensus is that they are predominately there for the sales force. Educating organisations about the benefits of Incentive programs within all areas of the business is a necessary lesson in the current economic climate. 

A recent article written by Teresa Russell looks at how companies are using incentives in innovative but effective ways:

Simon James, CEO of Haematology and Oncology Clinics Australasia (HOCA), admits it is unusual to provide incentives to nurses, but says they have been generally well received by both its clinical and administrative staff. HOCA is the leading provider of cancer care day clinic services in Queensland, caring for 180 to 200 cancer outpatients every day. Given the exponential growth of the aged population in Queensland, HOCA has experienced an increased demand for its services and now employs about 160 staff.

 HOCA is new to incentive schemes and recently introduced its first for several reasons. “We needed to attract people to work as nurses in a specialist sector that does not have the tax benefits that public hospitals provide,” says James. “A reward and recognition scheme was also going to differentiate us from other private sector employers and respond to a need among current employees that was highlighted in climate surveys,” he says. 

“Operating in the area of clinical care is not like sales. You have to do your work properly. When it comes to patient care, there is no alternative,” explains James. However, HOCA was interested in recognising an individual or group that went the extra mile or did something a better way, creating a helpful and innovative culture. They wanted to recognise those people who did good work, built a cohesive team and supported one another. 

It’s great to see that businesses are adapting incentive programs to work effectively for them whether it be to stimulate sales throughout distribution channels, reduce costs, or change behaviours in anyway to meet business objectives.

Working in a call centre is hard work. I should know after cold calling tens of thousands of NSW residents in an attempt to sell them a AU$50.00 Teddy Bear for Care Flight. Sure, helping a good cause or charity gives you warm fuzzy feeling but at the end of the day a Telemarketers job can be a thankless and repetitive one. Like any other industry the staff need to be recognised, rewarded and supported by their managers to keep them going.

I was fortunate enough to work for a business that had an incentive program already in place when I started my short lived (8month) telemarketing career. As a naturally competitive person, I rose to the top of a team of 40 telemarketers in a few weeks and set all kinds of new records taking the hard to achieve target of 3 teddy bears per hour to over 7.

Best of all for me was winning one of the incentive rewards on offer each month – I usually went for the weekend for two at a luxury hotel.

How to reduce a telemarketing companys turnover and absenteeism, Dave Powell – October 7, 2008

Motive8 has been making a bit of a splash lately and we have been seeing lots of potential clients and one question that has been coming up regularly is ‘what else do we need to be aware of?’.

We have put together a check list on things that can overlooked once you have decided to implement a program:

1. Make criteria clear and fair. Participants need to know what is expected and that they are entering a level playing field.

2. Make terms and conditions prominent. Participants need to know what to expect.

3. Communication. Don’t make a song and dance in the first week and then neglect it as the incentive will lose its relevance. See our earlier posting on how communication can drive your programs success.

4. Participants Demographic. Understand what drives their motivation. See our earlier posting on customising your program for employees.

5. Include all employees not just front of house. Administration and support staff make the back end work so don’t forget to include them.

6. Track Log-ins. If your program is online know which participants have logged in and those who haven’t. It will help you access the general vibe and take up of the program.

7. Freight cost. Will rewards be sent to home or office and will someone be available to sign for them? Will freight be post or courier?

8. Redemptions. When your participants received their rewards, ensure they attached the reward to your company.

9. FBT Liability. – whose paying for it and where does it sit. Factor it into your costs.

10. Legal team. Have your criteria and terms & conditions checked by your legal team so there are no surprises.

Two recent surveys have shown salary is no longer the key motivation to attract and retain staff; companies now need to show why someone should want to work at their company and how their contribution will make a difference.

Brisbane HR consulting firm Astor Levin conducted an employee satisfaction survey with over a thousand respondents across many industry sectors and company sizes right across Australia.

71% of those surveyed were satisfied with the organisation overall but 40% were planning to look for work elsewhere in the next six months. Nearly half felt there were better career opportunities outside their current employer. Only 26% of respondents reported their primary motivation as pay. Factors such as good leadership, work life balance and career advancement are key drivers for over 50% of employees.

Another survey, from recruiting firm final5 found that 48.5% of their respondents claimed they would leave or quit their job in the New Year. Those aged 18-34 were significantly more likely to leave their jobs (60%) than those aged 35-54 (44%). Of those wanting to leave only 19% sited more money with 25% seeking further career advancement or time for a change as their primary reasons for moving on.

Employees want to make a difference with 73% agreeing that it is important to feel like they are making a difference. 81% also said they would consider working for a not-for-profit organization with the main drivers being feeling like they are contributing to society and a belief in the cause.

Results from these surveys highlight that;

• Companies will need to be more creative in attracting and retaining employees and even if a company is able to attract the right people to work for it, retaining those people will be a challenge as their motivation is more than just money.

• Generation X and Y are more likely to move more frequently and are rejecting the old “job for life” concept.

• Bosses need to show employees how their contribution is making a difference to the company so the employee feels valued in their work.

With Australian unemployment hovering near a 30-odd year low of 4.3%, employees are in a strong position to pick and choose.

A fun working environment which values risk-taking and innovation is more likely to keep staff from wavering. The key is the corporate culture and by changing the behaviour of employees and rewarding and communicating these efforts ensures it is a win win situation for both the employee and the employer.

Companies with a structured incentive strategy outperform companies without this planned approach.

We run a number of incentive programs for a client who has branches Australia wide. Standard terms and conditions for each program state that a branch may opt out of any incentive program. For the current program they decided to change this procedure and sent out a form to be returned only if they wish to opt out.

We were startled when lots of forms started coming in and thought the incentive was not appealing. On our investigation we discovered that the Branch Manager had assumed it was to opt in as they had never had a form to opt out before or for that matter to opt in.

If you are going to change procedures, be clear on what you are asking them to do and don’t hide it in the fine print.

It’s that time of year when you start planning for next year’s incentive programs. The new year starts and your first incentive program is launched to motivate your team. It starts with a big bang and is very successful. However the year is progressing, your schedule is building up, the next program is delayed and left for a couple of months. Then it’s time again to motivate the team and another program is launch with a big bang and not as successful as other priorities have arisen. Then all of a sudden it’s the end of the year, targets need to be met and another big bang incentive program is launched. Get the picture.

The key to a successful incentive approach is making motivation a habit. Regular, ongoing rewards and communications are more effective than once-in-a-while rewards and communication. Use a series of small steps to build and maintain employee motivation.

With a small amount of initial discipline, you can create the habit that requires little effort to maintain. It’s sort of like going to the gym after doing it for awhile, it becomes routine; it becomes a habit.

Here are some tips for creating the habit and making it stick:

Stay Consistent. The more consistent you are, the easier it will be to stick. Schedule a monthly planning meeting, a weekly action meeting and daily activities to focus on. When cues like time of day, place and circumstances are the same in each case it is easier to stick.

Remind Yourself. After a couple of weeks into your commitment it can be easy to forget. Place reminders to execute your habit each day or you might miss a few days. If you miss the action it defeats the purpose of setting a habit to begin with.

Keep it Simple. Chose simple goals to start, even if they are not impressive. Once you’ve succeeded at achieving the simple ones, reward yourself and go on to achieve more elaborate goals.

Start Small. Trying to motivate the whole team all at once isn’t a good way to build the habit. For example you can start with writing 5 handwritten notes thanking employees for their past and current performance or speak with 5 employees and ask them if there is anything they think can be done better.

How will you be approaching your incentive strategy for 2008?

Often when we are dealing with new clients they are keen to know ratio of their budget should be spent on rewards, administration and communication.  They have some idea that it is a formula and if they get the ratio right they will have a successful program.  This assumption is based on their research about incentives programs ‘dos’ and ‘don’ts’.

We try to get customers to focus on their objectives rather than following the formula. Incentive Intelligence has a great post “Old Saws Are Usually Dull” that covers this perfectly.

Designing and implementing an incentive program is an accomplishment, but the true “staying power” of the program is linked to a successful communication strategy!

Here are 10 ways to help create your communication plan.

1. Lead from the top. Your CEO, MD and executives need be fully committed to your program and must be advocates for the program to help spread the word.

2. Word-of-mouth. Create the “words” for management and your leadership teams to use to talk-up your program.

3. Make it personal. To achieve any business objectives all areas have to be working together to a common goal so make the communications relevance to their position.

4. Frequently and often. There is a direct correlation between communication frequency and program results. The more communication the more aware, educated and inspired each participant becomes.

5. Excitement. Program communications should create excitement to improve motivation and ensure peak performance.

6. Variety is the spice. Vary your communication approach to keep your message fresh.

7. Multi-media. Review the communication channels that are available to you and incorporate them into your plan.

8. Logo merchandise. Extend the reach of your message with premiums. Use your program’s logo or image on the items your recipients receive and they will help promote the program.

9. Winners are grinners. Use past and current winners “testimonials” to help communicate the value of your program.

10. It not all about rewards. Tout the rewards but also the behaviour, skills and attitude people will need to achieve.