Giving a Little Back

HRM. What have you found to be the most popular trends in corporate recognition and gift giving?

CHRIS CRAWFORD. The trend in the incentive industry is headed toward Gift Cards, which offers a turnkey, easy-to-redeem solution for both customers and recipients. Performance programs are the new added incentive solution that augments traditional service awards platforms. Performance programs lend themselves to gift card redemption as the on-line approach is cost effective, easy to administer, and electronic reports provide a daily method to track and monitor the program(s) and budget(s).

PATRICK MITCHELL. Travel continues to grow in its importance and preference for employee rewards and recognition. The Incentive Foundation recently released a study that revealed business organizations spent $13.4 billion on incentive travel and an additional $25.9 billion on motivational meetings. For Royal Caribbean International, a significant trend we have seen is demand for incentive cruises to Europe. Corporations are always looking for quality products with motivational appeal for recognition programs, and cruises to Europe are an incredible way to say “thank you”. One of the advantages for US companies purchasing a cruise versus land-based resort in Europe is that the purchase is cost effective right now.

JOYCE ANDERSON. As companies look for ways to improve engagement, retain their employees, develop leaders and communicate what matters the most to the company, they need awards that reflect the value they place on employee achievement. Companies today are interested in connecting with employees through the awards they give. Organizations are asking us for innovative, quality personal items such as jewelry, watches and high-end lifestyle awards that employees can choose from and offer a tie to the company. When the award has lasting value and is a tangible reminder of accomplishment or the organization’s appreciation it brings the biggest value back to the company and the employee.

DARRYL HUTSON. Every employee is unique, so the most popular gifting solutions continue to be those offering choice. A growing number of employers are turning this challenge into an opportunity by providing gift or reward cards. Gift cards give recipients the freedom to select rewards that are uniquely meaningful.

The figures speak for themselves. Currently, two-thirds of companies utilize gift cards as their primary means of rewarding employees. Five years ago, fewer than 50 percent of businesses cited gift cards as their top rewards vehicle (Globoforce, 2006), so it’s certainly an area with robust growth.

STACY YOUNG. The two biggest trends in corporate recognition within the past few years have undoubtedly been the customization of programs and the widespread adoption of gift cards, specifically store-branded (closed-loop) Gift Card Malls. Versus offering a general incentive prize like new golf clubs, a TV, or a toaster where the product appeal is limited, companies are now leveraging major retailer’s branded gift cards to create a much broader appeal, ultimately giving a much more tangible or experiential reward – something with real “memory value” that the recipient will positively associate with the purchaser.

HRM. What are the benefits of recognizing employees at the holidays versus all year round?

PM. For incentive travel, recognition seems to run throughout the calendar year and is often driven by destination seasonality. Summer tends to be quite popular for companies that allow recipients to bring family or guests. Fall is popular as rates are less expensive in Europe and the Caribbean. Many customers prefer to announce the coming year’s reward trip on the current trip or at a national sales meeting to maximize exposure and motivational appeal. That motivational message, which is often critical for incentive programs, may get lost in traditional holiday gift giving.

JA. Most companies present awards during the holidays, so many employees now expect such celebrations. However, in most cases employees do not view holiday celebrations as individual recognition for a specific project or action. When general praise is offered en masse, employees feel like part of a larger group and do not count the celebration as recognition. Although such celebrations are important to the culture of the organization, the individual significance of the award itself is reduced when mixed in with other celebrations. However, when specific praise and recognition is given as a timely response to an achievement, the award takes on strategic value as a source of pride and inspiration for the recipient.

DH. The holiday season is viewed as the traditional time of giving - it’s the ideal opportunity to recognize a job well done. But if gifting happens solely at the holidays (and employees are not recognized throughout the year) it might be viewed as a management obligation. Ideally, holiday gifting should be part of a larger employee reward and recognition strategy. Long-term programs outperform short-term, intermittent programs. The best-case scenario: gifting that allows the employee to savor their achievements and contributions during the holiday season coupled with strategic reminders throughout the year. This combination is ideal because it incorporates a foundation program that’s designed to continually encourage and inspire.

SY. Employee recognition year-round is a key component of an organization's total rewards program. It’s instrumental in motivating employees to increase productivity and create a positive work environment. Employees who feel their contributions are important to an organization’s success are more likely to embrace its mission, goals and values. The holidays are different because they provide companies with a unique opportunity to create a shared sense of celebration amongst all the employees and highlight the calendar year’s accomplishments. Collectively honoring employees for achieving certain milestones over the past year creates a unifying sense of pride and builds great momentum for the New Year.

CC. Recognizing employees at holidays is an additional way of expressing “thanks” at seasonal times of the year. This type of award becomes a “gift” and is not based on performance, service, or measured against goals/objectives; it is simply an additional way to recognize recipients, enhancing existing incentive-type programs, and further promotes the motivation strategy of getting them to be more productive/increase job satisfaction/improve attendance/improve sales, etc.

HRM. What are considered best practices for distributing/delivering corporate gifts?

JA. In order to recognize maximum value for the organization’s investment in recognition, companies must give awards in a meaningful presentation. When achievement and actions are tied to the values of the company, organizations are more likely to see increased engagement, a better understanding of corporate values and increased engagement. There is a correct way to present an award, and managers should be trained in how to present an award properly. Presentations are also more meaningful when peers join in. Added value is created if the employee receives a card from their peers and manager congratulating them on the achievement.

DH. It’s paramount to take the time needed to develop a solid employee reward and recognition program. If you choose to invest in corporate gifting, make the most of it by integrating the expenditure into a larger program. This will enable you to make huge strides towards measuring ROI and optimizing program effectiveness.

When you take a holistic view of delivering corporate gifts, it’s critical to factor in management’s involvement as well as their ongoing role in reinforcing positive behavior. Both factors yield significant impact on the bottom line. From a distribution standpoint, another best practice is using a dynamic online reward management program. A robust and comprehensive tool not only eases administration tasks, it also provides another avenue to measure program data.

SY. When distributing, think of the gift as an opportunity to highlight the uniqueness of that relationship. Take the time to personalize each gift by including a tailored note for the recipient and giving a gift that you know the recipient will appreciate. We have received a lot of positive feedback for our emailable MyChoice Certificates because they provide instant gratification and a wide selection of America’s most popular retailer’s gift cards, they can be branded with a company logo and a personal note, and the program administrators have the ability to quickly replace/re-send gifts that might get lost and they can easily track everything.

CC. The most effective method for presenting awards/gifts is to deliver/ship to the workplace. This has an added effect as the award/gift may be presented in front of peers/management, which further promotes the company’s efforts to reward and enforce goals/objectives. Presentations also add extra emphasis to the value of the award/gift. Ceremonies equal recognition, and motivate peers to accomplish unified objectives.

Shipping to the home is excellent for turnkey programs, as it provides hassle free administration. However, it is a less personal way to express sincere thanks or recognize a job well done.

PM. The number one element for an effective incentive reward is that it has to be recognized as high quality and relevant to the recipient. Tangible, high valued rewards are more effective rewards because people can develop an image and focus on that image with greater mindshare. People will think about what bills they will pay with a cash reward. Travel tends to be highly preferred because it is an experiential reward that will have a lasting memory versus receiving a flat screen TV or a watch. Today, people prefer to be collectors of experiences rather than things.

HRM. What are the most effective ways to personalize corporate gifts? What are the benefits of this?

DH. At American Express Incentive Services (AEIS), we’ve found personalization that integrates company branding throughout the delivery chain to be very effective. It’s key to leverage every opportunity to link company branding and your recognition program together in employee’s minds.

A great way to personalize gift cards is to use ‘selective spend’ technology. This feature allows clients to direct the cardholder’s spend to a merchant or group of merchants that are personally relevant and meaningful. AEIS actually owns the patent to this technology and we’ve branded it as DirectSpend. It’s very exciting because it enables us to bring this popular, innovative process directly to the client.

SY. Remember that your gift is as gesture that you value a client or employee’s association with your company. Create an end-to-end branded solution that conveys your company’s message in the process. Then gift them with the truest form of personalization – the freedom to choose a gift card from a Gift Card Mall; a wide selection of popular retailers and restaurants gift cards. Unlike a Visa-like cash gift card, Gift Card Malls entice the recipient to buy something they really want. Ultimately your “gift of choice” concept generates the most “memory value” for your company because you were responsible for their enlightened shopping or dining experience.

CC. Personalization conveys the message that the award was designed and created with the recipient in mind, vs a generic cookie-cutter approach. Variable data capabilities (placing a name and/or logo) on the award/gift card provide an affordable way to make it a more valued, treasured experience. Personalizing insert cards, packaging materials, emails, and notes from supervisors are also effective personalization methods.

PM. A great way to personalize incentive travel is to provide an individual travel certificate rather than a group travel reward. This allows the recipient to enjoy a cruise when they want, where they want and with whom they want. That said, group incentive travel can be personalized by providing options to allow recipients to enjoy pre-paid shore excursions, or spa treatments. The sponsor of the program has an opportunity to recognize the best of the best, as a group, while personalizing the experience to punctuate the message about how valued the individuals really are to the organization.

JA. Companies present awards to their employees to encourage and change certain behaviors. They also give awards in appreciation of the employee’s achievement in an area that is valued to the company. Tasteful personalization of high quality awards creates lasting meaning for the recipient and reinforces corporate objectives. From embedded corporate symbols, embroidery, laser engraving, and other modern techniques, the corporate symbol can enhance to beauty and meaning of many awards.

HRM. What are your most popular incentives and recognition products and/or schemes?

SY. Our MyChoice Certificate, given either via email or as a physical certificate, is far and away our most popular product from the recipient’s and client’s perspective. Recipients can select a gift card online or by phone from our Gift Card Mall of America’s most popular stores, hotels, theaters, restaurants and more. Equally as unique for our clients, the certificate can have custom designs, personalized with a message and branded. Whether you are giving a few or a thousand, MyChoice Certificates offer the freedom and flexibility of cash, and the enhancement of your brand and message. It is cost-effective, trackable, and fun!

CC. Younger recipients lean toward instant gratification, choosing Lifestyle items (iPods, DVDs, TVs, vacuum cleaners, appliances, and tools). Wanting the newest/latest/greatest technology a brand has to offer, these items have less long-term trophy value, are easily shopped at retail, and can have a negative impact on the incentive process if not placed properly into an incentive program. Gift Cards are the most popular reward solution, from administrative and selection standpoints. Gift Cards offer a wider selection choice, are easy to redeem, offer hassle free administration, and can be tracked and monitored electronically at a moments notice.

PM. Merchandise continues to be the most popular incentive reward according to the most recent research from The Incentive Foundation. 31 percent of companies used merchandise incentives in 2006. Incentive Travel was used by 10 percent of all companies responding, but by 23 percent of companies with revenues over $100 million. For Royal Caribbean International, group incentive travel represents about 90 percent of our overall mix versus 10 percent for individual incentive travel. Similar to our general customer base, Caribbean cruises from three to seven nights make up the majority of programs we deliver.

JA. The most popular incentive and recognition products are those that are communicated well to the employees. Employees must understand how they earn it, what the award will be, what the achievement means, and when the award will be presented. When a company takes the time to make sure the program and its value to the company is communicated well through brochures, corporate web sites or formal training and trains it managers to reinforce those principles through great presentations, incentives and recognition products are made more successful.

DH. As the incentive industry continues to change, we’ve seen the products evolve as well. There’s a tangible shift towards plastic from paper. Gift cards are popular, convenient for employees to use, and easy to track, monitor and manage. Employee’s tastes are also becoming more sophisticated. More reward earners are choosing experiences that speak to multiple aspects of their lives. Instead of a weekend getaway, reward earners are selecting experiences like all-inclusive retreats or international vacations. The most successful corporate gifting programs are offering these experiential rewards because they provide a gift that is memorable and motivating long after employees have returned to the office.

BIO: Chris Crawford – The Corporate Marketplace

Chris J. Crawford is the Founder and CEO of TCMPI (The Corporate Marketplace, Inc), a Rhode Island based procurement hub that serves alternative channel distribution for leading brands in the incentive industry. Founded in 2000, TCMPI has been recognized by INC magazine (in their America’s Fastest Growing Private Companies September 2007 issue) as the 8th fastest growing, privately held software company in the United States.

BIO: Patrick Mitchell – Royal Caribbean International

Patrick Mitchell was named VP – Corporate, Incentive and Charter Sales in January 2006. He is responsible for planning and directing the brand’s sales and marketing strategies for corporate, incentive house, meeting planner and retail travel agency distribution channels. Patrick is a member of SITE, MPI and NBTA where he serves on the Corporate Social Responsibility Committee. Contact him on pmitchell@rccl.com.

BIO: Joyce Anderson – O.C. Tanner

Joyce Anderson is Vice President – European Sales and brings 20 years of experience in the recognition industry to her current role as the leader of O.C. Tanner’s UK sales team. Anderson has been instrumental in the successful expansion of O.C. Tanner’s recognition services in the European market. Her leadership and vision for helping organizations understand the people issues most critical to their success and insight into the recognition solutions that can help them address those issues have made her a valuable partner to many Fortune 500 companies.

BIO: Darryl A. Hutson – American Express Incentive Services (AEIS)

With 38 years of experience in the incentive industry, Darryl Hutson brings a long track record of success and unparalleled expertise to his position as chief executive officer. Hutson drove the creation of AEIS, a joint venture between American Express and Maritz Inc. Prior to AEIS’ inception. He was Corporate Vice President, Director of Marketing for Maritz Performance Improvement Company, a division of Maritz Inc. Under Hutson’s leadership, Maritz became the first incentive company to market co-branded reward cards in the performance industry.

BIO: Stacy Young – QuickGifts

Stacy Young is the President and CEO of QuickGifts. He is responsible for developing the company's business strategy and overseeing day-to-day operations. He has extensive knowledge in internet-based incentive services and card payment solutions. Prior to QuickGifts he worked with First Data Merchant Services distribution partners such as Citibank and Fleet to develop e-commerce strategies and national online marketing campaigns for many of the major retailers that are now seen online at MyChoice Gift Cards.