Conduit recently examined incentive strategies implemented by leading companies (across 8 industry groups) with both domestic and global participants and found the following trends.
- Companies are using incentives programs to address critical business behaviors across the entire enterprise. Progressive companies are using non-cash to strategically strengthen cash plans, promote best practices, brand employee behavior, and support training and promote worker competency.
- The “individualized” communication and tracking of value propositions and performance attainment against goal is on the rise. Fueled by the technical capabilities of web-based programs, more and more companies are utilizing one-one direct marketing style communications and feedback mechanisms while lowering administrative costs in the process.
- Several companies using the web are centralizing (or planning to centralize) all incentive activity into a single web portal. Companies report that the often conflicting objectives of reward consistency and cost control can be realized without compromising or limiting the planning autonomy enjoyed in decentralized units.
- Real-time web-based reporting is on the rise. Managers using electronic reporting functions report saving considerable administrative dollars while also gaining enhanced planning flexibility and creative options. The move also appears to be adding to the incentive experience for participants and increasing program visibility within the organization.
- As an award mechanism, debit card utilization is on the rise. Based on our interviews, we suspect that debit cards will outpace merchandise as the leading award component for annual programs. Branded debit cards will become the award anchors for integrated reward and recognition programs across a company’s employee base.
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