whitepaper: delivering appreciation to improve performance and sustain engagement
TRANSCRIPT
Delivering appreciation to improve performance and sustain engagement:How to maximise impact from reward & recognition at Christmas
Making your Christmas reward and incentives count
It comes around at the same time every year and is a fixture in most calendars yet, in many organisations, the planning and delivery of reward, recognition and incentive payments at Christmas all too often gets left to the last minute.
This is not just a shame, it is a missed opportunity because Christmas reward and incentives are one of the big opportunities organisations have to make a clear statement of thanks to employees, which prepares the ground for increased loyalty and performance in the year ahead.
It is also an area where a few small changes can really make a difference to the impact of the reward and incentives you plan to deliver – and where getting it wrong can have a powerfully counterproductive impact.
This white paper looks at the five key areas you need to consider in order to get it right and maximise the return on the investment you make in reward and incentives at Christmas.
In most organisations, Christmas brings the expectation of end of year reward and recognition for employees. And, although in aggregate, the budget for this will be substantial - and in some instances, represent the majority of the money put aside for employee recognition each year - it can be the part of the reward and recognition mix which suffers from the least planning.
It is understandably the case that budgets and attitudes towards Christmas reward, recognition and incentives can change year-on-year and progress towards the yearly targets which have a bearing on what you give may be unclear until close to December.
But, in our experience, the common factor behind a lack of planning is that not enough organisations take time earlier in the year to think about how they can refresh their approach to end of year reward and recognition in order to improve its impact as a driver of motivation and engagement.
A fresh approach to reward doesn’t need to be complicated, but does need time to plan. That means starting out early to understand what worked and what could be improved from last year, ideally by asking employees, but also by looking at best practice in your sector and among your competitors. You should also ask yourself who you are rewarding and why, and whether you are missing anyone out.
At the very least, your planning should clarify business and people objectives for end of year reward, outline the processes which will support its delivery and specify how impact on engagement and employee motivation will be measured.
One last element of planning is to ensure end of year reward is managed and treated as a principal driver of engagement and loyalty and not seen as a box-ticking admin task.
Complete your planning early
At a glance: Getting planning right
• Start your planning early – ideally before the Autumn• Establish how your reward, recognition and incentives measure up
to employee expectations and best practice in your sector• Create a plan which incorporates objectives, processes and
outcomes which can be managed and measured
1
One of the major assumptions which every organisation should challenge is whether you should continue to load all of your budget into Christmas reward, recognition and incentives.
Of course, meeting employee expectations that they should get some form of reward at this time of year is a powerful argument in favour of doing this. But when you take a step back, for many organisations and employees, the run up to Christmas is a hectic time: a blur of hitting end of year deadlines made harder by the pressure of personal planning for the festive season and a sense that there isn’t enough time to get everything done. Add in the tide of gifts which come many people’s way at this time of year, it is easy for your investment in end of year reward to be lost in this mix – or its impact substantially reduced.
So, if the goal of end of year reward and recognition is to reward loyalty and hard work while making a positive impact on employee performance, we think it makes sense for organisations to think about how that investment can work harder.
One approach to doing this is to stretch the investment by splitting the reward over December and January. Reward given when employees are struggling with the return to work and facing a long wait until the January pay packet is likely to have a greater impact and be more appreciated than reward loaded into December – particularly if employees aren’t expecting it.
More radical options would be to split the investment between a Christmas and Summer reward or to introduce a New Year reward scheme.
Whichever route you chose, if your goal is to make a difference to employee engagement and performance, rethinking the timing of when you give reward and recognition can dramatically improve the impact of your investment.
Christmas reward…not just for Christmas?
At a glance: Spreading your investment
• Ask yourself when reward and recognition would have the greatest impact for your employees
• Think about spreading Christmas reward over December and January
• Consider how your budget could be spread to other parts of the year to support your business objectives
2
For some organisations, cash reward in the Christmas wage slip along with a letter from the boss is the sum total of their contribution to their Christmas reward and recognition. Other organisations may go for a combination of a Christmas mini-bonus in cash along with another token of thanks to incentivise employees.
If your organisation falls into one of these categories, it is important to consider whether cash reward is really doing the job in cementing recognition for your employee’s contribution to the business.
On the plus side, cash is easy to administer and gives the ultimate in choice: it really is down to the employee when and where they spend it. The downside of cash is that it easily gets lost in the bank account, chewed up by bills and may never get redeemed for a specific reward, thereby losing its motivational impact.
So, if you are looking to maximise the motivational impact of your spend on recognition, then the argument for non-cash rewards is very compelling.
By giving multi-store vouchers or pre-loaded gift cards or, as is increasingly common, e-codes, you effectively ring-fence the reward. You also give your employees the choice which they value while you, the employer, benefit from the double motivational impact which comes first when the reward is given and then later, when it is redeemed.
Cash versus non-cash
At a glance: cash v non-cash
• Non-cash reward ensures end of year reward doesn’t get lost in the mix of personal finance
• Vouchers and pre-loaded cards offer the same flexibility and choice as cash but ring-fence the reward
• Non-cash reward can do a better job of reinforcing the impact of any recognition and be a greater incentive for performance
3
Today’s world is all about personalisation and choice. From what we watch on the TV – and online - to where we shop and the time we choose to do so, it’s an expectation we all have.
When it comes to reward, recognition and incentives, personalisation matters not just because it meets this expectation but because it allows employers to give something of value which recognises different people have different needs and priorities in life.
Personalisation is also important in providing a valued alternative to the ‘bottle of wine and chocolates’ approach to Christmas reward, or lazy approach of a single store voucher for all – something which can leave reward feeling predictable and stale, so undermining its benefits.
What this means is that when you plan reward and recognition, giving choice – in terms of what the reward is used for, when it is used and how it is used - is as important as the gift itself.
That doesn’t mean you have to give cash. Personalisation can be met by empowering employees with ‘choice’: the ability to choose their own reward. This can be achieved through multi store vouchers or cards where employees can choose the retailer they shop at which is still the most popular option at Xmas, or increasingly through online platforms with employees redeeming an e-code.
In our experience where reward and recognition is relevant it has more impact, so personalisation is critical – something which can then be built on when it comes to the final element: communication.
The importance of personalisation
At a glance: personalisation
• Choice and personalisation are increasingly an expectation for many employees
• Vouchers, pre-loaded store cards and e-coupons give employees the choice of when and where they redeem gifts
• Relevant reward has more impact for your organisation
4
While the nature of your reward and recognition is important, the importance of getting the ‘thank you’ right is also critical.
Many organisations fail to capitalise fully on the motivational element of reward because they don’t get the communication right - or fail to say thanks to employees altogether.
At the heart of good reward communication is face-to-face thanks from their line manager. This allows messages to be delivered clearly and directly to the employee. Managers should be clear about the contribution the employee has made and be explicit in why the reward is being given and, of course, say thank you. It should be done through a one-to-one and a good communications plan will ensure the timing of these meetings is consistent across the business.
A second layer of communication should use team meetings to say thank you to whole teams and reinforce any corporate messages.
The final element of the corporate reward and recognition process should be a more formal thank-you either from the CEO or relevant individual in the leadership team.
A good communications plan will ensure key corporate messages are delivered consistently while ensuring employees feel their contribution to the business is truly valued both at an organisational and personal level through their manager.
It will also look at how messages of appreciation can be reinforced early in the New Year to create a more supportive and motivating environment in the post-Christmas return to work.
Saying thank you
At a glance: getting communication right
• Organisations need to plan communications so they are consistent in messages and timing
• A one-to-one thank you from the managers is a critical element of the process which should never be missed out
• Organisations should seek opportunities to reinforce these messages from a corporate perspective
5
For many organisations, the changes they make each year to Christmas reward, recognition and incentives start and end in deciding what the budget allocation will be.
In the current climate where most of us are trying to achieve more for less Christmas reward represents a great opportunity to rethink what we do and how we do it.
With better planning and creative thinking about how reward and recognition is delivered, organisations can improve motivation and employee engagement, while laying the foundations for performance in the next year.
Conclusion
Christmas Rewards: for 2012 and beyondHow will you keep the focus on performance
for your team as 2012 draws to a close?
It is never too soon to start thinking about
Christmas and how best to reward your team,
show appreciation for all of their efforts during
the preceding year and help kick start the New
Year.
Edenred offer the widest range of reward and
incentive products, including prepaid cards,
single and multi-store retail vouchers and
gift cards and an online platform to help your
staff redeem their reward from a huge choice
of retailers in the widest network available on
the market today.
Capital BondsWith the recent addition of John Lewis stores, our market leading multi-store vouchers are now accepted at over 140 retailers (40 more than any other multi-store voucher) and 20,000 outlets nationwide, including over 450 independent stores, making them the perfect motivational reward for your top performers.
Single Store Vouchers & CardsWith a choice of over 50 high street and online vouchers and gift cards to choose from, covering in excess of 350 retail brands, single store vouchers and gift cards provide the simplest reward option, allowing recipients to redeem in-store or online.
Compliments Card A prepaid card that allows you to deliver rewards of a specific defined value to each of your recipients. The card is redeemable at over 110 retailers – 50 more than any other on the market today. Plus, branding your card offers a constant reminder of your caring side as an employer.
Compliments ExperiencesWith over 1,000 experiences and activities to choose from, Compliments Experiences is the perfect choice if you’re looking to reward your high performers with a once in a lifetime adventure, from track days to hot air ballooning or jumping out of a plane!
We can also offer efficient fulfilment and reporting services, to help take away the administrative burden, and our Communication Services Team will help ensure your message is received and clearly understood.
Compliments PassportTravel vouchers are ideal for motivation, incentive and promotions schemes. Whether for employees, sales teams or customers, there’s something to appeal to everyone. You can offer a wide range of holidays to some of the most popular destinations in the UK, Europe and worldwide to suit any budget.
Compliments SelectAn online reward platform that lets you issue, and your recipients redeem, almost any kind of reward, of any value, to any recipient, in any location .
Employee SavingsFor the same price of a bottle of wine per head, you can reward your employees all year round! Our Employee Savings platform is fully customisable and offers the widest choice of savings, discounted vouchers, reloadable cards and cashback options. Our year-round communications support programme drives participation and keeps employees engaged.
Christmas Hampers & Luncheon Vouchers Treat your recipients with our selection of traditional Christmas hampers, which can be enhanced to include any of the products from our range of gifts & reward cards. Alternatively, our Luncheon Vouchers, accepted at over 22,000 food & retail outlets can go towards their Christmas food shopping or to wining and dining with family & friends.
Download our infographic guide to maximising the ROI from your Christmas 2012 rewards strategy
Inludes the 5 key steps to making sure your christmas rewards are fully appreciated by your employees
Visit www.christmasrewards.co.uk
