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INDUSTRY NEWS
People Performance Management Predominant
Business Strategy in the Coming Decade
Even in today's soft economy, there's a competitive edge overlooked
by many organizations: people performance management. That's the term for putting a
strategic focus on achieving financial success through loyal customers and motivated
employees. Justification for people performance management is supported strongly by
these statistics:
- 82 percent of customers will stop using your product if they lose trust in your company.
Source: Harris Interactive
- Disengaged workers cost the economy $300 billion or more a year.
Source: The Gallup Organization
- Companies with a strong link between enterprise strategy and rewards programs generate
a shareholder return almost 40 percent higher than competitors without such strategies.
Source: Aberdeen Group Inc.
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Breaking New Ground
People performance management
takes familiar disciplines and integrates
them across functional lines to maximize
results.
The Seven Steps in The Forum for
People Performance Management
and Measurement’s executive white
People Performance Management
paper, Seven Steps to People
Performance Management
Performance Through People are as
follows:
- Leadership that Moves People
- People Relationship Management
- Alignment and Communication
- Training
- Rewards and Recognition
- Measurement
- Technology
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Common Sense
Common sense dictates that organizations focused on
fostering customer loyalty via a motivated work force will outperform those
that aren't.
A report by the Aberdeen Group, Inc., titled "Reward and Recognition Programs: Driving Employee Performance, Loyalty, and Enterprise Profitability,"
gives compelling reasons to adopt this emerging business strategy. The benefits include:
- Higher profit margins
- Increased sales
- Increased market share
- Greater net income per employee
- Lower costs
- Better asset utilization
- Increased innovation
- Fewer accidents
Source: The Forum for People Performance Management and Measurement’s
executive white paper, Seven Steps to Performance Through People by
Bruce Bolger. |
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Motivation Reduces Worker Turnover by 53%
A recent study on employee motivation and performance in the fast
food and hotel industries by the SITE Foundation found that a higher concentration on motivation results in a reduction of worker turnover
by 53 percent.
Read more about this in the next issue of Incentive News and Trends! |
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Corporations Look to Gift Cards as Key Employee and Consumer Incentive
In a recent study, 460 corporate incentive program decision makers were
surveyed, and findings from the study indicate that they are beginning to use gift cards as incentives more often.
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- 40% reported they used gift cards and/or gift certificates as incentives within the past year.
- 14% stated that gift cards are the most used incentive within
their company.
- 41% said they would “definitely” or “very likely” use gift cards as incentives next year.
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- 35% of current gift card purchasers anticipate expanding the number of cards they distribute in the next year.
Of those respondents:
- 17% said they will increase purchases by up to 9%
- 18% said they will increase purchases by more than 10%
- 74% of the surveyed incentive program decision-makers who have used gift cards personally said they were
more likely to use gift cards as business incentives in their company.
Why are they using gift cards more often?
The research provides the following reasons for gift cards increasingly becoming the chosen incentive:
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- 84% believe the recipient highly values a gift card.
- 83% realize there are reasonable costs associated with gift cards.
- 81% feel gift cards offer good value relative to cost.
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What industries use incentives most?
- Customer incentives were highest in service industries—especially, finance, insurance and real estate.
- 6 out of 10 businesses that use incentives are in the service and manufacturing industries.
Why are they using incentives?
Incentive programs are designed to retain, motivate and reward employees and the following categories are the most popular:
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- 70% offered incentives for employee performance
- 56% for employee years of service
- 54% for sales incentives
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Click here for
helpful information on planning your next incentive program.
Source: First Data Corp.
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CASE STUDY
SAS Institute: Employee-Friendly Perks Pioneer,
Award Winning Company
“We’re a 28-year-old company with employees reaching new milestones,
including 20-year anniversaries and eventually 30-year anniversaries and
retirement, so we’re trying to be proactive in finding the best ways to reward
our employees.” says Jack Poll, director of recreation and fitness division of
SAS Institute, a national software company that consistently places in the top 20
of FORTUNE Magazine’s “100 Best Companies to Work For”. |
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SAS Institute is headquartered in Cary, North Carolina (just outside of Raleigh).
Established in 1976, SAS Institute has long been a pioneer in employee-friendly perks,
including Friday Breakfast Goodies, Wednesday M&Ms, Fresh Fruit on Mondays, break rooms
stocked with complimentary drinks and snacks, and seasonal parties throughout the year.
The software leader now boasts a customer list that includes American Honda, The Home Depot®
and Staples employing 10,000 worldwide in offices from Anguilla to Yemen.
Thinking Ahead to Celebrate Every Employee Milestone
As the growing company searched for ways to reward their 5,000 US employees, the
idea of using gift certificates and gift cards seemed to be the best fit because it allowed the
rewarded employee to select their own gift. |
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The problem with single store gift certificates was
that not everyone is happy with the available selections. “We were rewarding employees with gift
certificates to local restaurants and stores, “ says Jack Poll.“ Our CEO even wanted to give airline
tickets to retiring employees, but what if the retiree didn’t want to travel or buy from that store
we selected for them? We wanted to give our employees something that they really wanted to make the
gift more meaningful. Our employees vary so much in age and lifestyles, we needed a more flexible
gift certificate program.”
Click here to read how finding the right incentive solution works for SAS.
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HALLMARK INSIGHTS NEWS
& ENHANCEMENTS
New Merchant! |
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Hallmark Insights has promised to
provide the best merchant list in the incentive industry and offer proof we work hard to maintain
that promise — an ever growing list of unique merchants that give your employees and customers the gift of great
choice!
Circuit City® Gift Cards can be used at any of the company’s 600-plus store locations in the U.S., online @ circuitcity.com or by calling
1-800-843-2489!
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Circuit City® has more than 600 retail outlets in 45 states with an incredible in-store selection of more
than 5,000 top-quality, low-priced consumer electronics products, personal computers and entertainment
software. And through circuitcity.com, customers have access to over 400,000 additional products not
carried in the company’s store locations.
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Circuit City® is proud to be a leader in the introduction of new
technologies and their goal is to provide the customer with an outstanding shopping experience.
Circuit City® is committed to providing high-quality service, top quality and low-priced products,
and superior consumer electronics solutions.
Use of the Circuit City name and logo is by permission of Circuit City Stores, Inc.
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eNewsletter Archive Now Available
on Web Site
Access past issues of Incentive News & Trends at Hallmark Insights'
web site. Click here to view the Archive. |
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