HR Issues today
All HR programs are delivered in the internal and external context of our times. Each day we contend with internal policies that we, as managers, implement, as well as external, macro-level influences beyond our control. And that’s where we started the survey, by asking respondents to tell us their points of pain — those issues they meet each day that affect their work plans and employees, and inform the HR policy.
The biggest concern for HR professionals is employee motivation. That concern takes on more meaning when we regard it in the context of downsizing and mergers and acquisitions issues. Not surprisingly, this result is also expressed in subsequent findings, where motivation concerns are being actively addressed by HR programs utilizing incentive programs, as below.
Incentive programs, as we know, provide an effective remedy to address employee motivation. Interestingly, we learned many organizations provide incentives within their health and wellness policies — an innovation that rewards employees with an increased appreciation for healthy lifestyle as well as the extrinsic reward of the incentive itself.
Interestingly, incentive programs that support and encourage employee competence or performance appear to be more popular than programs that are less directly related to day-to-day activities. Perhaps we prefer to recognize and reward positive behavior that we can directly control, manage, and improve.
Little wonder about the popularity of length of service rewards. Length of service rewards lie at the very heart of company loyalty, offer the occasion to celebrate long-standing contributions, and demonstrate another benefit of enduring company loyalty. This recognition also serves to subtly support an employee retention strategy, key to profitability in times where employee loyalty seems fleeting.
The balancing act — corporate HR agendas and personal motivation
HR professionals serve all manners of organizations, in all manners of industries, each of which promotes their own distinctive culture and personality. These business cultures have evolved to support each organization’s raison d’être, and staff both responds to and influences this workplace environment.
Like any other HR program, incentive programs ought to promote organizational culture while, at the same time, appealing to each participant at a very personal level. The good news is that these seemingly competing agendas are not such a tough balancing act, especially when you apply an appropriate incentive program reward structure.
Further, this sentiment — that personalization is fundamentally important — is a primary consideration when you review the variety of incentive programs available:
Above all else, personalization — across the organization — is critical to the success of the program. Obviously program participants are less concerned with administration issues than they are with redemption opportunities that appeal to them on a very personal level. Respondents believe that employees respond to programs where they can redeem their incentive quickly, conveniently, and economically. And this observation is consistent with what respondents told us in the survey itself.
The results of this survey confirms our experience — that respondents believe personalized incentive programs are of benefit to their organizations because these programs increase relevance to the participants, enhances their motivation to participate, and thus buoy the effectiveness of the incentive program overall.
At the same time, the survey results also starkly revealed a common misconception around the cost structure of personalized incentive programs — that, because these programs are personalized, they bring with them an increase in operational and management cost.
Perhaps it is these concerns around fulfillment and operational costs that reflect respondent’s current preference around incentive programs, with regard to preferred incentive types.
It appears that companies are gravitating toward gifts that allow the end user to make choices in the actual gift itself. Gift cards are leading the way to blend high touch with flexibility to pick your gift/reward.
So how do you strike this balance between personalization and strict management of operational, fulfillment, and redemption costs? These considerations are precisely the issues that fuelled the rapid development of the customized corporate gift card sector. Combining the effectiveness of using gift cards as incentives with customization options provides the ideal solution.
Perhaps that’s why many HR professionals are turning to gift card providers to address the costs of personalized incentive programs and ease of administration. Gift cards that provide multiple retail redemption alternatives provide flexibility to the employee — the more retail stores that accept the gift card, the greater the opportunity the employee will find a gift that’s meaningful — without taxing the already overburdened HR professional with additional administration or fulfillment responsibilities.
Management endorsement
Any program designed to incent or influence employee behavior needs to be endorsed by senior staff. This endorsement is typically supported through internal marketing communications — campaigns that define the goals, quantify the objectives, and engage the staff in a memorable way. Just as important, management needs to convey its endorsement of the incentive program operationally, through frequent, concise communications and dialog. The content of these messages should clearly define program goals, and how these goals will be measured, and achievement rewarded.
While many respondents are satisfied with their communications and organizational support for incentive programs, the predominance of the neutral response, neither agree nor disagree, shows that we can make improvements to support these programs, company wide.
Certainly, formal internal communications programs — newsletters, posters, web sites, and e-mails — are useful to convey incentive program goals and objectives, and staff achievement creatively. Just like any advertising media, you need to “cut through the clutter” to get the attention of your staff. That means messages need to be simple, goals measurable, and success well defined, or you risk losing your audience — and their motivation.
So, make it fun. Make it exciting. If your incentive program communications read like a corporate news release, you’ve already sent a message to your staff that the program itself is less than inspirational.
Run a teaser campaign. Set a launch date. Use the web and e-mail to entice, and print material to explain. Change it up from time to time. If you have an external agency, use its creative team to help you bring the incentive program to life. However, like we find in any successful advertising campaign, the message should be compelling and simple.
Subtle, informal methods are often just as productive as formal communication programs. Encourage managers to talk about the programs, from time to time, during weekly meetings, one-on-ones, or around the water cooler. Over time staff will embrace and endorse the program, as they continue to see their managers naturally promote these incentives and foster the corporate values these incentives encourage.
So how did you measure up? Do you share the sentiments of your colleagues; or do you hold a differing view?
Keith Dunas is a Research Analyst/Consultant with Strategic Direct Marketing Group-SDMG. For more insight and details on the Hbc 2007 HR Incentive Survey, go to www.hbc.com/b2b and sign up for the Hbc newsletter. To learn more about ideas/strategies on corporate incentives, visit www.hbc.com/b2b
