If you want a return on investment (ROI) you first need to make an investment. This holds true for a company’s employees also. Investing in your employees through employee recognition initiatives is a surefire way to increase employee motivation which in turn will increase the company’s bottom line.
A perfect example of this strategy in practice is The Texas Roadhouse. Early this year, the meat cutters and managers were rewarded with a company-paid trip to NYC for a job well done. This trip included employee perks, as well as a number of promotional strategies.
According to G.J. Hart, Texas Roadhouse CEO, “Our biggest asset is the people that run our restaurants and that work there. And like any asset, if you want a return on that asset, you need to invest in it."
This type of employee incentive strategy seems to be in a rebound mode since AIG’s $400,000 fiasco in the midst of the recession. Treating its executives to a meeting at the St. Regis hotel in New York City, after “it was bailed out and received 85 million from the government,” was viewed as extravagant. The AIG effect, which it became known as, left other companies fearful of providing incentives in the form of trips and travel.
While companies are now using travel again as an incentive, the trips are far less extravagant; the focus is on public service rather than indulgence.
Experts believe the incentive travel industry will continue to recover. In fact, industry leaders, such as Maritz Travel, note “a 60% increase in proposals for incentive travel initiatives.”