Employee Incentives & Recognition
Trends for 2013
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Importance and value of recognition
Trends in Recognition
Build a comprehensive recognition strategy
Q&A
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40% of employees site the reason for leaving a job
is a lack of recognition
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Gallup reports that 65% of employees site that they
receive no recognition on the job
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According to Gallup the top 3 motivators include:
◦ In the last seven days, I have received recognition or praise
for doing good work
◦ My supervisor seems to care about me as a person
◦ The mission/purpose of my organization makes me feel my
job is important
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Less than 40% of employees are motivated by
their supervisor to give their best effort.
35% of the surveyed workers said their boss
never, or only sometimes, listens to their
work-related concerns.
More than 50% said their negative perception of a
boss had them contemplating finding a new
employer.
Source: 2012 DDI study
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The average CSR lasts 6 months on the job
Annualized call center churn is 40%. Some
centers exceed >100% employee turnover
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Bad hiring decisions
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No personal connection with direct
supervisor or manager
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Poor communication/direction
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Lack of effective recognition and
compensation
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Monotony
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According to the Robert Francis Group Inc.
the cost to replace a CSR position is
$10,000-$15,000 per person
For an average center with 100 associates
that only loses 30% of the staff annually, it
will cost $300-$450K a year to replace
employees
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Motivation is what causes us to act.
Individuals are generally self motivated.
Employee engagement is the emotional
commitment the employee has to the
organization and its goals.
Employee engagement has been attributed
to higher ROI and increased profit margins.
Source: Employee Engagement 2.0 by Kevin Kruse
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90% of companies cited making investments in recognition
programs
The average percent of payroll budgeted for recognition
programs is 2.7% annually
The top 3 objectives of recognition programs reported
included:
◦ Create a positive work environment
◦ Motivate high performance
◦ Recognize service anniversary (retention)
According to respondents, 80% or greater reported that their
performance-related recognition programs had a moderate to
high impact on overall company results
Source: Worldatwork
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Certificates or plaques commemorating an
achievement continue to top the list of prizes, with
cash and gift certificates rounding out the top 3
70% of companies report they use a mixture of
formal and informal rewards to motivate employee
performance
Diverse demographic profiles are forcing
companies to rethink standard recognition options.
Current trend to offer a “choice” to employees in an
effort to appeal to a variety of needs or interests.
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Online catalogs that include a wide array of
merchandise, travel and gift cards
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Online games
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Scratch and win (real-time)
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E-cards
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Social sites for teams to communicate
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E-training/sharing best practices
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A comprehensive recognition strategy*
includes a three-dimensional approach
◦ Formal
◦ Informal
◦ Day to Day
* Recognition Professionals International (RPI)
Fixed Compensation (salary)
+
 Variable Compensation (commissions,
bonuses)
+
 Benefits (medical, dental, vision, life,
STD, 401K, employee stock, work at
home etc.)
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Review your company comp-ratio strategy.
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Review base and variable pay scales.
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When benchmarking salaries, do not factor
benefits, environment, flexibility etc. into this
equation.
Remember… you get what you pay for!
Source: FurstPerson 2011
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Formal
◦ Award sales or service compensation monthly to
reinforce results-oriented performance.
◦ Clearly define bonus requirements, structure and
payout timelines.
◦ Structure and communicate company defined
employee awards.
◦ Service anniversary awards… don’t wait for 5 or
10 years to thank your employees.
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Understand your workforce demographics to
create targeted benefits that are valued by
each generation
◦ Gen Y young, single and healthy. Often prefer to
receive incremental pay vs. healthcare benefits
◦ Baby Boomers and Seniors more likely to value
benefits and accept lower paying positions to
secure healthcare
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Informal
◦ Leverage monthly/quarterly contests to energize
and motivate performance. Should always be
measurable.
◦ Implement Management Kudos to reinforce
outstanding service quality based on customer
feedback (both internal and external). Reinforce
positive behavior and acknowledge the
departmental STARS.
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Day to Day
◦ Set specific sales goals for each employee.
Supervisors to review daily/weekly with
reps
◦ Post Performance Ranking
◦ Introduce form of “Caught in the Act”
feedback program to reinforce the right
behaviors
Service Recognition & Rewards*
Day to Day
 Performance Ranking
 Caught in the Act
 Team Celebrations
Formal
 Employee of the Month
 Sales Compensation
 Bonus plan
Informal
 Incentive Contests
 Management Kudos
30
Inventory
Existing
Incentives
Calculate
Current
Financial
Investment
Categorize
Assess
gaps
Implement
Integrated
Program
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The short answer is yes.
You really can’t afford NOT to recognize your
people
The key is how do you calculate the ROI on
your investment?
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Implementing a fully integrated recognition
program can cost as little or as much as you
want
The ROI measures the gain (or return) you
generate from the spend (or expense)
So what is the best way to measure and
present ROI for recognition and incentive
programs?
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Tie recognition programs and incentives to
real results. Primary metrics include:
◦ Revenue/Sales
◦ Reduction in turnover
◦ Reduced absenteeism
◦ Improved customer satisfaction
 Call Quality, QA, Surveys, Order accuracy
◦ Enhanced efficiency
 AHT, Occupancy, Rework
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Celebrated the first Friday of March
March 1st, 2013
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Sincere Thanks
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Smile
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Remember someone by name
◦ I’m Out of Here
◦ School’s back in Session
◦ Technology
◦ King for the Day
◦ Hallmark Moment
◦ Wall of Fame
◦ Service with a smile
◦ May I have your keys sir?
◦ Game Stop
◦ Shutter Bug
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Red Hot Performance
Life Saver
Every days a Pay Day
Your worth a 100
Grand
Smartie pants award
What a Whopper
You are on the way to
5th Avenue!
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You’re a Star Bursting
onto the scene
Musketeer to the
Rescue
Thanks for going the
Extra mile
Way to go Mr. Goodbar
Your service is Good &
Plenty
Leader in sales compensation and recognition programs
Company Overview
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Established 2007
Based in Dallas, Texas
Only market provider of
pre-made contests
Clients across all industries
Service small to Fortune
500 companies including
Frito Lay, Toni & Guy, NEC,
& Time Warner
Full service, Sales and
marketing consulting firm
Value Proposition
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Online, Ready-Made
Contests
Customized
programs/campaigns
Compensation consulting
Sales compensation
administration
Points based recognition
and rewards
Marketing consulting
services