Grateful Isn't Dead

inStore Magazine, May 6, 2011
By: Lorraine DePasque

Did the slump not kill employee-incentive programs? The effect was actually the opposite, say firms in the field. “Companies realize that showing employees gratitude is even more important during difficult times,” says Michelle M. Smith of O.C. Tanner, which runs employee recognition plans as well as a jewelry store. John Knodel of Online Rewards says it’s not just about a bonus: “Instead, you’re incentivizing staff to get more people into your store, sell higher-ticket items. If you’re a jeweler with 15 sales associates but you were able to inspire a dozen of them to increase their sales by just 10 percent, you’d be happy, right? That’s what these programs can do.” — LORRAINE DEPASQUE

Points To Consider

“Mix both monetary and non-monetary rewards into your program.” — MICHELLE M. SMITH, O.C. TANNER

“Be sure the company you’re working with offers rewards that will be compelling to your staff.” — SMITH

“Tell a rewards company the budget you have in mind. This immediately lets them know what collections they can include.” — AMY TRUEBLOOD, AWARDS NETWORK

“Decide if you want the rewards company to custom-build a website for your employees to log into to see what they can earn and to choose their rewards. Also determine who’s to be responsible for administration of the site and fulfillment of the awards.” — JOHN KNODEL, ONLINE REWARDS

“If you set up your rewards system incorrectly — for example, if you underincentivize your people — you’ll wind up doing more damage than good with your program.” — KNODEL

Programs often have both quantitative and qualitative measures of success. “Decide what awards are quantifiable and which aren’t. We work with you to figure that out.” — LINDA WODELE, HINDA INCENTIVES

If you think some employees would be interested in experience rewards, you need to work with a company that offers these because some only offer gift items. “We suggest experiences that employees ordinarily wouldn’t do unless they got it as a reward, for example, a cooking school with a famous chef, race-car driving or a hot-air balloon ride.” — WODELE

“Choice is essential. Just because you may offer a bunch of TVs as rewards, not every one of your employees wants a TV. That’s why you need a rewards company to help you put together a program based on their experience in the field.” — WODELE