According to a study by Forbes1, most employee recognition gifts are awarded for tenure within an organization. However, a key finding in the study emphasizes that the most successful employee recognition programs are performance based rather than tenure focused. Organizations that rely heavily on customer-facing roles, such as those in sales and customer service, are especially well suited to performance-based programs.
Travel vs. Monetary Gifts and Rewards
The problem with gift or monetary incentive programs is that employees often expect to receive them along with regular raises or perks of the job. This is exactly where travel shines in the spotlight.
Unlike monetary rewards or gifts that can be quickly spent (and often for day-to-day needs), travel incentives leave a memorable experience that create lasting memories. Additionally, the interaction with other cultures, destinations, foods, etc. provide valuable insights that can’t be taught in a classroom, training program or on-the-job experience. These experiences outside of the workplace also create connections with the world on a larger scale.
The Motivation and Travel Connection
Incentive travel is also one of the most popular motivators of employees. Studies demonstrate that even employees who consistently meet target goals contribute more to business objectives when all-expense paid travel is offered as a recognition gift.
Getting Started
Running a campaign that achieves larger business objectives requires more than a budget and ideas for destination travel. The essentials of an effective employee incentive program are as follows:
- Identify the goal or objective of the employee reward program.
The most effective programs utilize measurable targets to track return on investment. For example, if the desire is to increase sales from new customers, then the overall goal might be to increase revenue by 20% from new customers. - Select who will participate in the program.
While employee recognition for tenure impacts everyone in the organization, an incentive program based on specific outcomes should target who is responsible for achieving those goals. For example, If the goal is to increase sales revenue, then the incentive program should be limited to the sales and sales management team. - Determine the duration of the program.
Some programs may be shorter (e.g. weeks) where other incentive programs may consist of longer periods (e.g. months). For example, if the objective is to increase overall annual sales revenue, then the program’s duration may be for a period of 12 months. - Set tasks and/or goals for the people participating in the incentive offer.
Valuable incentive programs improve motivation by establishing goals in which a reward will take place. However, goals can’t be achieved without action, which is why setting tasks is critical for the success of the employee recognition program. For example, sales teams may be expected to make a specific number of outbound calls, identify a specific number of new opportunities with new customers, as well as close more deals in the next 30 days. - Monitor and track the results of the program.
Understanding whether the program is having the desired impact on the goal is often where incentive programs can fall short. Setting objectives, target results and other measures along the way can ensure that the program is working. For example, a monthly review to see if sales numbers are increasing or if new customers are being added may be realistic and obtainable goals.
When to Bring in Expertise
Once the program basics have been established, a budget has been defined and the type of destination determined, it’s time to bring in travel experts. Incentive travel has many moving parts and not knowing their impact can result in higher costs, dissatisfaction of program participants or similar outcomes.
Working with a corporate travel expert can help ensure that the employee recognition gift of travel is a lasting and positive experience. Additionally, travel experts have relationships and a network within the travel industry that allows them to:
- Negotiate better pricing or extras for no additional charge
- Locate cultural experiences that are meaningful
- Prepare for the “what-if” scenarios that occur with global travel
- Take care of the details that only industry expertise would know about.
Conclusion
Organizations benefit most from employee recognition programs that focus on performance based outcomes instead of tenure.
If your organization is looking for employee recognition gifts that your staff will love, contact Gavel International for more information about a corporate incentive travel program.
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