2015 Canadian Incentive and Rewards Trends Study

Transcription

1 2015 Canadian Incentive and Rewards Trends Study Summary Report Branded money, delivered intelligently. berkeleypayment.com

2 The 2015 Canadian Incentive and Rewards Trends Study Motivation is contingent on employees receiving rewards they truly value. But are Canadian organizations really motivating employees with their corporate rewards and incentives programs? We asked Canadian HR professionals and employees for their perspectives on: Which rewards Canadian employees prefer to receive for a job well done. What makes program administrators want to pull their hair out (and they do!). How the current economic downturn will affect corporate rewards and incentives programs in Canada. And, more. 2

3 Study Key Findings Summary Employees rank a lack of recognition as the top reason for unhappiness in the workplace. 60% of employees say their employer s rewards program does not motivate them to do a good job, costing companies both money and their best employees. The Incentive Gap widens in 2015: the rewards given by employers do not match the rewards desired by employees. 3

4 About the Study Now in its sixth year, the 2015 Canadian Incentive and Rewards Trends Study is the only research of its kind to analyze: How corporate rewards and incentive programs are used in Canada; Which rewards are preferred; and The obstacles faced by Canadian companies looking to retain employees and boost productivity. Record number of responses: In June 2015, we polled 1,125 Canadian Human Resources (HR) professionals from marketing services organizations, incentive firms, human resources consultancies, government agencies and corporations across Canada. New demographics: In addition to employers, we also asked 500 full time employees in Canada about what makes them happy at work. Results are accurate +/-3%, 95% of the time. 4

5 What are Corporate Incentives And Rewards? Part of formal programs used to incent, reward, or recognize employee actions or behaviours. Typically used to motivate performance or reward milestones. Merchandise(company selected or points-based catalogue); Incentive travel or travel rewards; Prepaid MasterCard or Visa cards Retail gift cards or gift certificates (for a specific store, restaurant, or service); and, Special events or experiences 5

6 Does your organization use employee rewards or incentives to motivate or engage employees in 2015? The use of corporate employee incentive and rewards programs is down to 61% in 2015 from 69% in

7 Who Uses Corporate Reward and Incentive Programs in Canada? Type of Organization Size of Organization 7

8 5 Reasons Companies Don t Use Employee Rewards and Incentives in Canada 55% of Canadian employees report their employer doesn t offer incentive or rewards programs. 8

9 You indicated you re happy at work. What makes you happy? I enjoy what I do Flexible hours Good pay Rewards and recognition Great management Great colleagues Great culture Benefits Great location Other 0 % 10% 20% 30% 40% 50% 60% 70% 80% 89% of Canadians appreciate when they get a reward for doing their job well while less than 1% say that workplace recognition is irrelevant for them. 9

10 You indicated you re NOT happy at work. What makes you unhappy? Killer commute Long hours Dissatisfied with pay Lack of recognition No benefits Bad boss / upper management Bad company culture Other 0 % 10% 20% 30% 40% 50% 60% of employees say their employer s rewards program does not motivate them to do a good job, with 70% saying they have never received a rewardfrom an employer in recognition of a job well done. 10

11 Budget Cuts and Employee Engagement Require Balance in % say their corporate reward or incentive program is important to the success of their overall business. 90% of employers say it's a management priority to engage employees in the coming year. Program budgets remain steady in 2015 but employers will need to strike a balance with 1/3 anticipating budget cutsdue to economic uncertainty in

12 The Incentive Gap Widens in 2015 Merchandise The gap between the incentives companies use, and the incentives employees want, grew in Incentive travel / Travel rewards Prepaid Visa, MasterCard Store gift card Special events or experiences Rewards given by employers Rewards desired by employees Other 0% 10% 20% 30% 40% 50% 60% 12

13 Which generational group do you think is the hardest to determine the best reward or incentive for? 70% of employers say choosing reward or incentive programs that have mass appeal and motivate employees from different generations is difficult. 13

14 Program Administration Frustrations is Running High Almost half of those polled said Yes when asked if their corporate reward or incentive program makes them want to pull their hair out. 14

15 What measures does your company use to evaluate the success of your reward or incentive programs? For the second year in a row, participant satisfaction was the primary measure companies use to evaluate program success. 15

16 Which type of reward or incentive do you believe is the easiest to administer? Merchandise Incentive travel / Travel rewards Prepaid Visa, MasterCard Store gift card Special events or experiences Other For the sixth year in a row, prepaid cards were considered to be the easiest reward to administer by employers. 16

17 Which type of reward or incentive do you think the end recipient will be most motivated by? Merchandise Incentive travel / Travel rewards Prepaid Visa, MasterCard Store gift card Special events or experiences Other For the sixth year in a row, prepaid cards were considered to be the reward with the broadest appeal and most likely to motivate end recipients. 17

18 Top Three Reasons Why Prepaid is Used For Employee Rewards 1 2 Ease of Use / Time to Administer Flexible / Mass Appeal 3 Perceived Value 18

19 Which type of reward or incentive do you believe will provide the highest return on investment to a company? Merchandise Incentive travel / Travel rewards Prepaid Visa, MasterCard Store gift card Special events or experiences Other 19

20 Which reward do you think best meets the needs of today's diverse multigenerational workforce? Merchandise Incentive travel / Travel rewards Prepaid Visa, MasterCard Store gift card Special events or experiences 9% 7% 56% 19% 9% Respondents widely prefer prepaid cards for rewarding multi-generational workforces. 20

21 You're receiving a reward for many years of service at work. Which form of recognition would you prefer? $500 Prepaid Visa card 3 days all-inclusive vacation $1,000 in merchandise from a catalog Formal social recognition among peers $500 Gift Card for a restaurant, mall or retail store 49% Canadian employees widely prefer prepaid cards over more costly forms of recognition. 21

22 Incentive and Reward Program Best Practices Embrace company goals. Incentives should be tied to strategic corporate goals and objectives, and should directly reinforce core values. Give employees what they want. Motivation is contingent upon end users receiving rewards that they truly value. Giving the wrong reward may have the opposite of its intended effect. Decide on the type of programs. Peer recognition, spot rewards, contests, one-time rewards and points based programs are all commonly employed by companies looking to drive engagement. Decide on which ones best fit your company, your budget, and your goals. 22

23 Incentive and Reward Program Best Practices Develop criteria. Recognition should be something special, attainable, and frequent, and should involve the entire company. Develop criteria around who is eligible for rewards, what the goals are, and when rewards are awarded. Deliver rewards in a timely fashion. The gap between an employee achievement and the delivery of the reward needs to be short, since timely acknowledgement contributes significantly to participant satisfaction. Ensure attainability for all. Making sure that performance standards and expectations are transparent, and that employees believe rewards are achievable is critical to program success. Feedback is required. Program testing and learning is important. Feedback on how the recognition program is received is necessary in order to adjust and improve as you go. 23

24 Get in Touch! For more information about this study, please contact Hugh Vagtat About Berkeley Payment Solutions Berkeley Payment Solutions delivers MasterCard and Visa prepaid card programs for corporations, governments, and financial institutions. Collaborating with more than 700 business-to-business and business-toconsumer clients, channel partners, non-profit organizations and marketing agencies in Canada and the United States, Berkeley creates custom prepaid incentive and payment solutions that can be used for a wide variety of programs. For more information, visit 24