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Make incentives meaningful
February 10, 2011


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By Tony Prakash

It is common sense, but companies must invest more than just cents. Most companies do commit to spend on incentives. Why wouldn’t they? Incentives drive behaviors, they encourage employees to perform above the standard, to participate and stay engaged on the job and stay loyal. Incentives work in this way if they have perceived value. The challenge, therefore, is for corporations to put thought into selecting the right incentives based on what has value.   

Not many corporations out there will ask straight out: “What can I get for cheap?” Instead, some will ask for low-priced items, say under $10, or even for items to appear branded with their company logo. I’ve heard on occasion the term “trinkets and trash” still used as a selection criteria. How is this not cheap, when you are calling it trash? 
 

The reality is that $10 items, branded items, or “trinkets and trash” will not be remembered by the recipient. And if it is not remembered, then how can it be of value? Reusable bags, logoed pens – many of us have received such items during conferences, or as recognition gifts. Why would a decision-maker spend money on such items if they are largely going to waste? Would anyone throw a $10 bill down the toilet? It would prove more effective to re-allocate funds so that a little more is invested on something of value. Another option is to select fewer items but move up the price point – give them out as door prizes, draws or rewards to individuals who made contributions – and not those who simply showed up at a conference.   

Many companies give away logoed items. My logoed items are not all in the garbage – some are collecting dust under my desk among a pile of other stuff. Some companies select incentives based on a theme, which may have no practical use for the recipient and therefore no value.  

What has value is a question that some corporations do ask, leading to better incentive choices that work to keep the company name in the recipient’s forefront, as such products actually get used and appreciated and subsequently reinforce good work habits. Products hot today include robes, towels, leather portfolios, e-readers, popcorn makers and exercise mats. E-readers are valuable incentives that are great when recognizing staff who participated in courses or completed training sessions. It’s important to keep the incentive context in mind – robes make sense as gifts in hotel rooms to conference delegates.    

Gift cards are also popular today, great for employee recognition, consumer loyalty programs, and for staff at special events or year-end parties. They are valuable because the recipient will actually use a gift card – especially if they provide redemption choice. Gift cards at Sears for example tend to be popular as recipients can buy merchandise, travel and a host of services.

The more choice the more value. And the more value to the recipient, the more chance to inspire ideal behaviors at work.      

Tony Prakash holds an MBA and is the Business Manager for SEARS Incentives, where he has serviced incentive needs for more than 100 businesses across several industries throughout Canada.

Filed under: The Industry, Columns & Advice

 

 
 
 
 
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