Energizing employees can be a challenge
by Rob Stonehewer
February 3, 1997 - Strategy Magazine
Special Report: Premiums & Incentives

Rob Stonehewer is president of Rob Stonehewer & Associates, a firm that plans programs designed to increase sales, improve performance or enhance consumer loyalty.

In these gloomy winter months, with the holiday season behind us and Spring still weeks away, energizing your employees can be even more of a challenge than usual. Incentives and recognition programs are your best option.
According to a recent study by Hewitt Associates, a U.S. consulting firm, 61% of companies surveyed are now implementing "variable compensation systems," with 51% using recognition awards, 44% individual performance rewards, 43% customized all-employee business incentives and 29% some form of profit-sharing.

If you're considering such a program to motivate employees during the winter doldrums, here are a few useful tips:

1. Set clear, measurable, attainable objectives
Establish measurable objectives, tied to individual performance, that challenge top achievers to excel while stretching average achievers to improve their performance as well.

You can also try creating cross-functional team-based objectives, which will enhance internal communications.

Regardless of the employee's position in the company, there is usually a way of measuring performance, which can be tied back to the overall corporate objectives.

2. Motivate all of your employees
Don't just look to motivate the top 20%. Develop a program that appeals as well to the middle group - the 60% who, with encouragement, can still make a significant contribution to your bottom line.

The value of the awards for non-sales personnel may not be as great (1% of their annual salary, versus 2% - 5% for sales programs), but any form of recognition for a job well done will have a dramatic effect. Try a photograph in the company newsletter, theatre tickets, tickets to a major sporting event, dinner for two or a privileged parking space.

3. Invest in communications
Choose a theme that is short, simple, has a call to action and addresses the program's objectives. Keep the program alive with lively, frequent promotions that may include such elements as quizzes, sweepstakes and theme-related premiums.

Integrate training into your program, too. It could be as simple as a series of simple questions that require employees to look up references in existing publications or to communicate with other departments to obtain the answers.

Publish newsletters and performance standings, and be sure to recognize any winners. The award doesn't have to be presented by the president of the company. In fact, it can be more relevant and less intimidating - especially for a junior employee - to receive an award from his or her senior manager.

4. Offer awards targeted to the demographic
Don't just offer awards that appeal to your own tastes: consider the lifestyles, ages, income and marital status of your participants. Someone who lives in an apartment is unlikely to be highly motivated by the prospect of receiving gardening equipment or outdoor furniture. And a toaster won't motivate top sales performers who have been exposed to incentive programs before.

Consider a selection of awards that will appeal to a wide demographic, structured in plateau levels that reflect the level of achievement.

5. Individual travel awards
Individual travel is the most widely preferred incentive. But someone who hasn't travelled extensively may not be motivated by the offer of a Kenyan safari or exploring the mysteries of the Nile. And not everybody enjoys playing golf or cruising the Caribbean.

If possible, offer a selection of destinations, and make available all-inclusive vacation options, so that the winner doesn't have to pay for anything out of his or her own pocket.

6. Group incentive travel awards
Group incentive travel awards provide an opportunity for you to recognize achievers in front of their peers, instil loyalty and reinforce teamwork. The downside is that it's expensive and takes all your top performers out of the office at the same time.

For participants, it is a chance to experience something they could never afford to do on their own. If, however, you are considering opening up your program to all levels of employees, be sensitive to the fact that many may feel uncomfortable sitting at the same table as the company president, in surroundings that may be quite opulent.

7. The merits of merchandise awards
Merchandise awards come in enough styles and prices to appeal to employees at all levels. The important thing is always to buy quality merchandise at the right price. There's nothing less motivating than having your hard-earned reward break down the first time you use it - or to discover when you receive your T4, that you could have bought the item on sale at a fraction of the price.

8. Communicate performance
Employees need to know how they are doing in an incentive program, so that they can focus on improving specific areas of their performance. It also pays to identify how the top performers are doing, to encourage a little healthy competition.

At the end of the program, verify that it produced a positive return on investment, and identify any areas for future improvement.

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