2014 Canadian Incentive Trends Survey

Transcription

1 2014 Canadian Incentive Trends Survey Topline Report June 24, 2014 /

2 About the 2014 Canadian Incentive Trends Survey Now in its fifth year, the 2014 Canadian Incentive Trends Survey is the only research of its kind to analyze the use of corporate incentive programs in Canada; the rewards that are preferred; and the hurdles faced by Canadian companies looking to retain employees and boost productivity. This year s survey was conducted in May 2014 and polled 669 Canadian Human Resources (HR) professionals from marketing services organizations, incentive firms, human resources consultancies, government agencies and corporations across Canada. Those polled include companies of all sizes and across numerous sectors including financial services, consumer packaged goods, telecommunications, retail, health care, media and advertising, manufacturing, and government. Survey results are accurate +/- 3.7%, 95% of the time. 2

3 What is a Corporate Incentive? Corporate incentives are part of formal programs used to incent, reward, or recognize employee actions or behaviors. They are typically used to motivate performance or reward milestones. Corporate incentives are also used as part of consumer promotions, consumer rebates, points programs, channel sales programs, and sales incentive plans. Types of incentives include: Merchandise (company selected or points-based catalogue) Incentive travel or travel rewards Prepaid Visa, MasterCard, or American Express cards Retail gift cards or gift certificates (for a specific store, restaurant, or service) Special events or experiences 3

4 Who Uses Corporate Incentives in Canada? Companies with less than 500 employees represent the majority of survey respondents, indicating the use of employee incentives and rewards is not just for big enterprises in Canada; organizations of all sizes can benefit from their use. Organizations from a wide spectrum of industries in Canada use employee incentives and rewards with most of those polled being health care (10%) or manufacturing (10%). How many employees does your company have? Where do you work? What is your title/position? 4

5 Use of Corporate Incentives and Rewards in Canada The use of incentives in Canada has been fairly stable over the last few years, suggesting Canadian companies recognize the value they offer when motivating or engaging employees. They are also using incentives beyond the realm of HR. Have you used incentives for customer loyalty, marketing, sales rewards, or employee reward programs? Have you used employee incentives and rewards to motivate or engage employees? Do you feel you gained an advantage over the competition because of your incentive program? 5

6 Reasons for Not Using Incentives While budget and lack of awareness hinder Canadian organizations use of incentives, perceived difficulties in administration and measurement show a stark correction in 2014 as the incentive and rewards industry responds to corporate needs for ease of use and a more measureable return on investment. If you have not used incentives, why not? Too difficult to administer Difficult to measure results or ROI Top three reasons for not using incentives 6

7 Program Budgets & Return on Investment Despite a lacklustre economy, Canadian companies maintain their level of investment in corporate incentive programs in 2014; yet many may be missing opportunities to improve their programs because they do not measure for return on investment. Year-to-year budgets show consistency with 50% saying their program budget remained the same for /2 Four out of five measure program success. Of those who measure program success, the majority believe prepaid Visa, MasterCard and American Express cards provide the highest ROI. 7

8 Key Factors When Choosing An Incentive Participant satisfaction/positive experience ranks as the top measure of program success, with costs and ease of use finishing off the top three considerations when choosing an employee incentive. What are the most important factors? Mo#va#on is dependent on employees receiving rewards they truly value. 8

9 The Incentive Gap There is a gap between the incentives companies use, and the incentives employees want. Although prepaid cards motivate employees the most and are perceived to have the highest ROI, companies continue to offer incentives like merchandise, retail gift cards, and special events. 9

10 People Prefer Prepaid Prepaid cards are growing in popularity, and when it comes to motivating people, are preferred 2X more than retail gift cards and 9X more than merchandise. Have you offered retail gift cards or prepaid Visa, MasterCard or American Express cards as part of an incentive or reward program? Which type of incentive do you think the end recipient will be most motivated by? The top reason for choosing prepaid cards is ease-of-use. 64% feel most comfortable using a prepaid card with a financial institution s brand displayed on it. $50 10

11 Motivating Today s Multi-Generational Workforce While 64% believe their programs take into consideration a multi-generational workforce, 52% find it somewhat difficult to motivate all age groups, especially Millennials. Which is the most difficult generational group to pick an appropriate incentive for? Almost half of those polled (46%) believe prepaid cards mo#vate Millennials the most. 11

12 Incentives in a Mobile World Canadian companies are starting to recognize the growing importance of mobile applications when choosing employee incentives that deliver participant satisfaction. 21% of those polled feel mobile incentive platforms are very important. 32% believe mobile applications (e.g., the ability to pay with your phone) are very important. 12

13 Our Conclusions Incentives are For Everyone Finding Well-run employee incentive programs can deliver a competitive advantage for Canadian companies. Insight Marketing and sales should look to the success of HR programs and implement best practices to extend the benefits of incentive programs outside the realm of HR. The Incentive Gap is Real Finding Canadian organizations continue to offer traditional incentives that are not valued by employees, or that do not provide a measureable ROI. Insight Canadian companies are not getting full benefit from their employee incentive programs if the incentives they choose are not valued by their employees. To bridge the incentive gap, they need to choose incentives and rewards that employees want, and that provide a measureable ROI. 13

14 Our Conclusions Incentives are Getting Easier to Use Finding Employee incentive programs are getting easier to manage and measure. Insight Innovation in the incentives industry is driving the delivery of new and easy-to-use tools that are cost-effective and that save time. As more Canadians embrace mobile technologies, particularly Millennials, companies that embrace mobile platforms to deliver incentives will ensure a better level of employee engagement and program success. 14

15 Checklist for Program Success Ensure your program provides desired rewards. Motivation is contingent upon end users receiving rewards that they truly value. As the survey results show, merchandise from a points-based catalogue or travel incentive/rewards don t appeal to everyone, particularly Millennials. Deliver rewards in a timely fashion. The time gap between an employee achievement and the delivery of their reward needs to be as short as possible, since timely acknowledgement contributes to participant satisfaction. A third party managed solution could be the answer for program administrators who are too strapped for time and resources to effectively deliver incentives. Create programs that embrace business goals and company values. Performance incentives must be tied back to strategic corporate goals and objectives and should reinforce core success values. Measuring program success will help you determine if your incentives are effectively supporting your corporate goals. 15

16 Checklist for Program Success cont d Ensure your program is highly visible. Keeping employees focused and motivated requires constant communication, regular rewards and recognition, and constant outreach to maintain momentum. Design programs to reflect desired behaviours. Identifying, defining and rewarding specific desired behaviours or expected performance is key to incentive program success. Ensure attainability. Incentive and reward programs should be structured so that all participants believe they have a chance to achieve the reward throughout the duration of the program, rather than just a few high performers. 16

17 Contact For more information regarding the 2014 Canadian Incentive Trends Survey please contact Hugh Vagt at About Berkeley Payment Solutions Berkeley Payment Solutions delivers MasterCard and Visa prepaid card programs for corporations, governments, and financial institutions. Learn more about us at As a trusted managed services provider, we help over 500 corporate and government clients navigate the payments industry ecosystem and offer an extensive suite of services including program management, product development, accounting and reporting, IT consulting, and integration, processing, card design, and card fulfillment. We also partner with leading financial institutions to accelerate revenue growth opportunities and profitability by reducing the cost, complexity, and risk of developing and launching new payments products. 17