Incentive Magazine recently released their 2012 Merchandise IQ Study, which asked their readers how and why they spend their merchandise dollars. Overall, the results are encouraging for the premium and incentive industry and illustrate that companies see the value of recognizing employee performance to drive behavior and create a stronger organization.
Employee recognition ranked highest this year as a reason for using merchandise rewards. 44.7 percent pointed out that building morale and job satisfaction is their main objective for using rewards, while 52.2 percent cited increasing sales and 50.8 percent used rewards to build loyalty. Considering the Incentive Research Foundation’s recent revelation that “74 percent of employees would consider a new job opportunity while 50 percent are actively looking,” a strong rewards and incentive program must attract, retain and engage top performers.
Management is saying thank you for a job well done. Traditionally, salespeople were the only employees treated to a variety of spiffs and bonuses but 41.3 percent of respondents say they awarded their non-sales personnel almost as frequently as their sales team (50 percent) this year. Organizations are making the connection that a strong rewards and incentive program is the key to enhancing employee performance and improving the bottom line.
Surprisingly, more than half of the respondents view brand names as only “somewhat important.” Program managers must keep in mind that employees are consumers, driven by their emotional connection to a brand and want products in an incentive program that relate to their lifestyle needs. Redemption patterns show that the merchandise being offered within incentive programs needs to mirror current retails trends in order to fully engage employees.
In today’s digital age, employees are connected 24/7 through the use of smart phones, tablets and social media sites. Yet respondents stated that only 43 percent of their program participants redeemed awards online. While it is important to build and maintain a robust online rewards platform, program managers must also consider all methods of redemption to ensure they are reaching employees across all levels and encouraging participation.
Other results highlighted that electronics (valued at $100 and under) are the 3rd most popular merchandise award behind apparel and food and beverages. This is a great reminder that in order for an incentive program to have broad appeal, it must have something for everyone. The differences in generations are more apparent than ever before, especially when it comes to what they each view as a meaningful reward. By understanding each generation, program administrators will recognize which products must be a part of the merchandise mix.
Although there are signs the economy is slowly improving, no one can be certain how the recent recession will continue to impact employee retention rates. This study shows there are plenty of opportunities for the incentive industry to help organizations build upon and strengthen their current recognition programs to truly retain the best employees.
To read the entire report, please click here
View Original Article
Incentive Magazine recently released their 2012 Merchandise IQ Study, which asked their readers how and why they spend their merchandise dollars. Overall, the results are encouraging for the premium and incentive industry and illustrate that companies see the value of recognizing employee performance to drive behavior and create a stronger organization.
Employee recognition ranked highest this year as a reason for using merchandise rewards. 44.7 percent pointed out that....