The Incentive Research Foundation released a new white paper called “Anatomy of a Successful Incentive Travel Program.” (fyi - it's the first on the list and you must provide email address to download - I know, I know - but they didn't ask me.)
The white paper is an overview and analysis of one company’s group travel reward program and showed that these type of incentives have a clear, measurable and positive impact on corporate culture and employee performance.
The IRF also showed that there was a "ripple effect" on the economy of the region where an incentive travel program is held – but most companies are only worried about their results – not whether Senor Frogs got a bump in late night business. While I understand the need to promote the use of travel as an award media (the IRF is after all, an industry association) whether the award influences the economy at the destination shouldn’t be your reason for doing a travel program. (Unless you own Senor Frogs.)
Taking a Different View
But, rather than simply spit out the results, I thought it would be more fun to juxtapose the results of the study against what most companies do – sort of showing the “before” and “after” point of view.
In other words – the study says what you should do – I’ll highlight what most companies REALLY do. If you see yourself in the picture – take note and do a program autopsy (call us if you need help, hint, hint.)
The 5 Key Program Elements and How Most Companies Do It
| Best "Practices" |
Actual "Practices" |
| Earning and selection criteria for the reward were clearly tied to business objectives. |
Earnings and selection criteria for the reward are clearly tied to luck and upticks in specific markets. This is a big one since many companies simply set a sales or profit goal and reward those that did best (ie: top performers.) However, as we all know – results can be skewed by some random events. How would you like to be the bottled water sales person in New Orleans after Katrina – or the hotel GM in the same city. In one case the hurricane helped – the other, not so much. Try to work in the behavior side of the equation somewhere in the mix. I’m not against rewarding top performers – just like to connect some effort to the output – not a roll of the dice. |
| Communication about the program and the progress participants were making toward goals was clear and consistent. Anticipation built throughout the year and kept employees motivated to achieve their objectives. |
Communicate the program in week one and then announce the "winners" in week 52. I used the term winners on purpose – most programs call top performers winners. Lottery’s have winners. Reward programs have earners. But to the communication point. Not only do you need to communicate via the traditional methods (print, email, newsletter, etc.) take the time to teach managers how to communicate progress during the program. Having a manger meet with and review progress in a program has much more impact than a mass email listing the top performers “to-date” (whether they earn the award at the end is still a question mark.) |
| The design of the travel program, including desirable destinations, interactive sessions and leisure time for the earners, added to the overall excitement. |
The design of the travel program meets the needs of the CEO’s personal tastes, or the tastes of his/her significant other. You laugh. I’ve designed more than one program in my shady past where the destination was either the pet location for the CEO’s wife or some vision the CEO had in a dream featuring a big penguin and Ouija Board. Destination should cover the gambit of activities and options based on your SPECIFIC participant profile – not just the hottest destination based on recent trends. Don’t want to take that senior group to El Capitan for mountain climbing. |
| Managers acted as hosts to reinforce the company's commitment to the reward program and recognition. |
Managers are “assigned” as hosts and then disappear amongst themselves so they don’t have to rub elbows with the great unwashed. Believe me – I’ve seen it. Do like one of my clients used to do. They developed a host manual with rules, suggestions, etc. and held a special meeting with the company’s top brass (reinforcing the importance of their role) and reviewed the objectives of the host assignment. This company got it. |
| The company kept detailed records that prove the productivity of the earners and their contributions to the company's financial performance. |
The company hides the fact that sales actually went down during the program period but since they were taking the top 10% of the sales force they still had “winners.” Keep in mind that your goal is to reward performance not standings. If sales are down – and you still have people who can earn awards – check your rules. (again, we can help – hint, hint.) |
As you can see there are many ways to make a reward program good – and just as many (if not more) to make it bad. If you see yourself anywhere in the right column – you gots some problems.
And my final bit of snark…
Retention and Satisfaction – Duh Moment
Researchers examined the tenure and performance ratings of 105 employees who earned the incentive trip at XYZ Corporation. Overall, 88.5 percent of incentive travel earners had a performance level of 1 or 2 (1 being the highest level of performance and 4 the lowest level of performance) compared to 31.2 percent of the control population.
Ask these questions...
Did the program cause them to be top performers (1’s and 2’s) or is it more likely that if you were a 1 or 2 you were a top performer and therefore earned the trip? Just ‘cuz your top performers were on the trip doesn’t mean the trip caused them to be top performers.
15% of the award earners were below the top two levels of performance before the trip. Luck? Dramatic turnaround in attitude and performance?
So the point of the post. Don’t just do it – do it right.
A
Marketing and Incentive Design Consultancy