1. CASH IS KING
Maybe so, but when it comes to engagement, cash is the court jester. Research proves that non-cash incentives are far more effective. People will gush about a trip or item they earned, but cash lacks the same trophy value. They will forget how they spent the money, but they never forget an experience. Plus, once people get used to cash, they don’t see it as recognition– they usually feel its “owed to them” often negating the whole purpose behind a bonus or incentive award.
2. INCENTIVE PROGRAMS ARE EXPENSIVE
Disengaged employees are far more expensive! CTS (Center for Talent Solutions) studies show that fully engaged employees are on average about 22% more productive than “normally engaged” employees. “Somewhat engaged” employees are about 75% as productive as normally engaged personnel. Furthermore, “disengaged employees” perform at only about 50% the value of normally engaged employees.* What are your disengaged people costing you now and what will they cost you later when the economy is back in full swing? Any professional worth their salt can help you design a program that has a positive ROI and should be able to demonstrate how an effective program is self-liquidating.
3. PEOPLE ARE LOYAL TO MY ORGANIZATION
We’d all like to think so, but how loyal you are to a store or brand? Everyone wants to be true to their local shop, but at some point most people go to the big box. You can’t count on loyalty unless people feel they are getting something in return.
4. WE DON’T NEED PROFESSIONAL HELP
I am sure whatever business you are in you are an expert! If you are a plumber, I would come to you before I would try to fix my own pipes. So you have done a little research and you understand that this is an issue you should tackle, but if you are going to make a significant change and investment in your organization, why leave it to chance? I know a little bit about plumbing from remodeling my 100 year old house, but I am not willing to risk it. If I drywall over a pipe I put in myself, it might burst, and then whatever I “saved” just cost me a whole lot more!
5. AN INCENTIVE PROGRAM IS AN “EVENT”
Not necessarily. A one-time event may give you a short term “boost”, but like an energy drink, it can fizzle out quickly. A good incentive program is actually a business formula by which you encourage desired behavior. Frequent flyer programs have been an excellent example of how airlines have maintained loyalty through the worst of times. Remember, incentives must be woven into your long term business strategies to be TRULY effective.
To find out more, visit our website or call us at 1-855-551-FIRE(3473)!
FLG President and CEO
*The economics of Engagement, Allan Schweyer, Human Capitol Institute, June 2009