The Chartered Institute of Personnel’s Annual Reward Management Survey found that, 41 per cent of the firms sampled were running staff recognition schemes and 31 per cent were offering employees non-cash rewards. “However, even non-monetary schemes have financial implications or firms wouldn’t bother to run them,” comments Victor Tardieu of Full Circle Motivation. So do they work and if so, how? They need a demonstrable ROI. Though, getting a handle in advance, on how much money to invest or what the likely financial outcome would be, is a little more challenging. If an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment in a particular programme should not be undertaken.”
Clearly in the sales incentive / motivation / recognition space, a formula needs to be found that can assist the busy executive in his / her search for decision making support prior to committing to a course of marketing action.
Now there is the Full Circle Motivation ROI CALCULATOR for the incentive market, a useful tool in providing estimates of output in advance once the following information has been input: Existing company turnover (as a benchmark), Budget for the programme, Number of participants, Target turnover increase. The new ROI calculator will then provide the following information as guidance:
- Cost per participant
- New turnover figure
- Budget expenditure for the programme
- Turnover per participant after the programme
- Turnover benefit to the company per £ spent
Human resources budgets might be squeezed in our age of austerity, but the quest to retain and motivate valued talent continues. Further, research by Marketing Innovators found that there was “an indirect yet undeniable correlation between employee satisfaction and financial performance” – firms that invested in strong recognition and award schemes showed higher levels of employee motivation and job satisfaction, factors that fed directly to improved performance and better customer service. Cary Cooper, Distinguished Professor of Organisational Psychology at Lancaster University agrees, and says that strong evidence exists to prove that high levels of employee motivation generate “better team building, better shared knowledge and movement towards objectives, higher levels of job satisfaction and ultimately better performance and productivity.”The Market Innovators report mentioned earlier found that businesses with a strong staff recognition and reward culture will be able to measure a number of direct effects, not the least of which is higher productivity and performance. It states:“Employees feel they have a place within the organisation and perceive their contribution as unique and valuable.”
Specialists in staff recognition and incentives like Full Circle Motivation have found that companies are seeking to maximise the impact of their training by introducing recognition and award programmes for employees. These programmes are designed to: increase employee satisfaction; build long-term loyalty and embed values; reduce staff attrition; build teams and more.
Comments Tardieu; “we have a real understanding of these programmes and can present a dynamic, low cost, online and customisable system, which: recognises peer-to-peer, long service, anniversary; stimulates key behaviours which align with the company’s vision and values; recognises and rewards outstanding employee performance; can recognise the supply chain for their part in the process; and can also be used for performance improvement such as: attendance, suggestions, productivity, in fact any measurable behaviour or activity.”
Furthermore, Full Circle claim that they can demonstrate, through rigorous ROI calculations, that a well-motivated and engaged workforce will generate a handsome return on investment if the schemes are well-designed, measured, monitored and communicated. And they’ll help retain needed talent, too.