Inside incentives: rethinking motivation and retention strategies
Mike Parrott, head of performance improvement and incentives at Strata, reveals how flexibility is the key to winning at incentives in the current economic climate.
Mike Parrott, head of performance improvement and incentives at Strata
Mike Parrott, head of performance improvement and incentives at Strata
Budgets remain a top concern for agencies and planners, but now is not the right time to cut back on reward and recognition programmes. We need them now more than ever, and it’s possible to deliver exceptional campaigns - even on a tight budget.
Currently, we are seeing a growing trend towards experience-based rewards and recognition, which can be tailored to individual preferences and needs. Data suggests that personalisation in incentives can lead to a 50 per cent improvement in performance. Technology enables managers to be more targeted in their approach and deliver relevant incentives and recognition programmes that speak to employees directly.
This is a pertinent point, especially as growing numbers of event professionals are facing internal pressure to deliver incentives, rewards and recognition programmes with deeper levels of engagement and a greater return on investment (ROI).
Ensuring the cost of delivery of any incentive or rewards programme is at its lowest and company performance and results are at their highest is a key priority. We regularly talk to our clients to understand the real-world challenges they face, and it’s paramount that we do this if we want to stay front and centre.
"It’s amazing what budget can be found when you can prove that the cost-to-benefit ratio of running any campaign is 15:1."
We know from recent conversations that it’s tough out there. Therefore, being able to take control of their campaigns, and to have autonomy, is crucial to agencies and planners. They want to activate campaigns and programmes with speed and ease so that they can engage employees faster and achieve results quicker.
Effectively delivered incentives and recognition campaigns also play a significant role in building positive company cultures. With the right planning and control, companies can not only increase the output of their employees but also attract new talent and retain the great people that they already have.
So, what should you do to stop employee churn and engage people during periods of change or low morale?
Probe the purpose
Incentives are not just about rewards. They stimulate employees to perform better and achieve targets across various metrics such as service, sales, and innovation.
So perhaps it’s time to think about shifting from one-time incentive events to a continuous engagement model, aided by technology that provides ongoing, personalised feedback.
Or how about adopting an outcome-driven approach that welcomes questions and examination, encouraging everyone to probe the purpose of any activities and to focus on programmes that offer tangible benefits?
Flexible approach
In March, Strata hosted its quarterly Insights Event, looking at how agencies and corporate planners could drive engagement through live events and experiences. Several interesting points of view came up, including the suggestion that to save money, organisations could try co-hosting incentive events alongside valued partners and that now is the time to get more detailed and strict on numbers.
It was agreed that by adopting a flexible approach to budgets, agencies could redistribute assigned funds from less impactful campaigns to initiatives with a stronger ROI. The message was that planners should not be afraid to deviate and change their original plans.
More strategic
Engaging stakeholders with compelling event proposals can easily lead to budget adjustments in favour of more productive activities. But also introducing ROI evaluations before any incentive event is approved is seen as a beneficial move too. Again, it allows for a more strategic allocation of resources and avoids spending on events driven by personal interests rather than business value.
And what about perception? Strategic decisions to host incentives or events in locations/venues deemed extravagant could be cost-effective but do negative comments amongst colleagues challenge any decision making? It highlights the need for clear communication about the rationale behind such decisions to avoid misinterpretation.
If you keep focusing on the why – why you’re doing the event and what you want to get out of it – then it’s easier to demonstrate any ROI to the board. And if you have a compelling argument, even in a time of budget constraints, how could any switched-on business refuse?
It’s amazing what budget can be found when you can prove that the cost-to-benefit ratio of running any campaign is 15:1, especially when simple-to-use technology can help you to nurture any ‘average performers’, who are often the lifeblood of any business.
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