Are cash bonuses, merchandise awards, travel incentives, and other forms of rewards a thing of the past? Most likely not... but what you used to call them just might be...
As I worked the Motivation Show in Chicago recently, it was very apparent to me that the Incentive Marketing Association and its members have certainly figured something out. That something is that after the troubles of GM, AIG and others that it is much more palatable to describe these incentives as retention compensation, performance improvement, recognition engagement, and employee enrichment.
Has this new articulation been developed only as a measure of self preservation or is there more to it than that? Beyond the political ramifications and concern over public outcry, there actually might be a viable business reason for this change. By positioning these proven approaches differently, they may once again be perceived to do what hey have always done; impact a company’s ability to sustain itself.
According to Frank Mulhern, PhD at Northwestern University and the Forum for People Performance, Management and Measurement; there will be a tremendous shift in how business positions its self in the coming years. “Business is People-based…we’re in an Employee-led Economy and the USA has long been in a shift towards an information and service economy. Both of these are driven by people, compared to an industrial economy which is driven by raw materials, machines and production. Businesses must shift to become people-first, (even though) this is difficult because people are messy–they have feelings, create tensions, shirk if they want to, get sick, quit, etc.”
Couple this with political and economic factors as well as generational preferences, and it is clear that there will be a 180 degree shift in how companies will change their approach in the future. Think of this in terms of what a company can do for their employees, salespeople, and customers, versus what they can do for the company. Creating a meaningful and important experience that enriches someone’s life as a direct result of association with a company is what you may want to aim for going forward.
If that means sending people on trips, supporting community involvement, saving the planet, or just allowing more time with friends and family, it really doesn’t matter what you call it... as long as the employee feels that they are benefiting from something they deem important!
Learn more about Newton’s employee improvement programs and how they align employee needs of a meaningful work experience with a businesses need for productivity.