The Incentive Research Foundation has recently completed a study on U.S. Federal Regulations on non-cash rewards. According to those surveyed, 70% are “extremely” or “very” knowledgeable about the tax and other regulations regarding non-cash rewards. That same percentage reports that they are proactive in their approach to program design - and change the design frequently in order to comply with regulations.
“Don’t try this at home!” How many times have we heard that directive? In most cases, it’s because although something may look easy, it’s probably because it’s being done by professionals. This is also true of employee engagement, recognition and incentive programs.
Can being charitable and “giving back” attract and retain employees and increase customer loyalty? Research suggests that it does. Charitable giving also plays a role in employee reward and recognition programs.
Incentives… we all want them. From earning $.05 cents off a gallon of gas after spending $100 dollars food shopping to receiving 50,000 sky miles for signing up for that “Free” credit card on a flight to Vegas We all love when we think we are getting something for “free”. But are these incentives really “free”? What is the true cost of 50,000 sky miles or $.05 cents off a gallon of gas cost the promoting company. From the companies perspective, the cost associated with the discount, miles, or points pale in comparison to the objective to drive and change our behavior.
If you build it, they will come, right? Not necessarily. Proper program design and branding will ensure that your incentive programs are effective and will deliver a higher return on your investment, but make sure that you don’t underestimate the role of communication in employee recognition programs.