Canadian HR Reporter

CANADIAN HR REPORTER AUGUST 2018 FEATURES 19 RECOGNITION Modernizing sales rewards 6 ways to motivate and engage employees to do their very best at work By Peadar Walsh E mployee recognition pro- grams have the power to motivate and inspire. Every time people succeed at something — anything — their nerve cells release a chemical called dopamine, which stimu- lates the reward centre of their brain. It feels good. Here are six ways to modernize reward programs for the better: Challenge the status quo Create a program that defies the status quo, building a culture of recognition for every level of the organization — one that disrupts the norm, grabs employee atten- tion and engages them long-term. is includes fresh programming, interactions, rewards and ways to earn. However, people value losses more than they value equal-sized gains, and employees may be cyni- cal about changes. So avoid repli- cating earning opportunities, mea- sures or rewards common in the current program. Do something different. Make the new program a platform for a revitalized message, a fresh way of looking at life at the organization via updated branding and a new focus. Be inclusive A major reason individuals choose which incentive or loyalty program to join is based on whether or not they identify an idiosyncratic fit, according to b ehavioural e conomics professors Ran Kivetz and Itamar Simonson. is is the feeling that people have when they enjoy a unique ad- vantage in achieving a goal, mak- ing a sale, beating an opponent or completing a task. Each time salespeople are of- fered a new incentive, they ask themselves two questions to de- termine if the opportunity "fits:" • "Do I have an advantage over others in the program?" • "Are the rewards worth the effort?" When they answer yes to both, they are most likely to join — and succeed — in a specific program. When given the opportunity to choose their own goal, many will aim for the highest one. Failure to find this idiosyncratic fit can result in reduced confi- dence and lack of engagement from a sales team. Managers who reward only top performers will find themselves frustrated in their efforts, wondering why people aren't hitting their goals. Companies that provide perfor- mance-based rewards to multiple segments of a salesforce enjoy bet- ter employee retention and sales. Diversify the rewards Offering various rewards can make for a healthy compensation plan. But what is the right blend? e more incentives used, the greater the gains when it comes to sales volume, customer sat- isfaction and the retention of sales employees, according to a BI WORLDWIDE survey of 575 sales compensation experts about cash, gift cards, travel and non- cash or non-travel. Travel, which is a comparatively more expensive option, can be used to reward top performers. Gift cards or non-cash items can be used as incentives when more salespersons earn based on achiev- ing a shorter-term sales contest. e field of positive psychology talks about a phenomenon called "hedonic adaptation," where some- thing that initially makes us happy and engages us becomes dull and trite after time. Companies that use various tools reduce this effect. Promote choice Effective recognition and rewards programs allow employees to choose their own award. Personalized and segmented offerings and communication make people feel like the oppor- tunity being presented is unique. Not all rewards are equal. In looking at a "rewards efficacy con- tinuum," cash or gas and grocer- ies have lower efficacy than luxury merchandise or experiences, in- cluding travel. Cash is less effective at getting results, whereas travel, entertain- ment or luxury merchandise are more emotional in nature. e further away from the dollar sign, the more effective the rewards be- come at changing behaviour. Use immersive technology As technology evolves, e-com- merce programs are taking pre- cedence, such as web-based catalogues that feature a curated, international product offering. Further, as technology evolves, digital experiences are becoming more sophisticated. Virtual real- ity (VR) technology can give top performers the opportunity to run through a virtual warehouse and "grab" as much sought-after luxury merchandise as possible in a virtual world, from whatever location they choose. Go social A social recognition platform: • reinforces performance through social connectivity • puts employees in the public eye • enriches an organization's cul- ture as a whole • allows for peer feedback and em- phasizes the accomplishments of employees. And take note: Millennials live for instant feedback and commu- nication in their personal lives — and now they want it at work. By 2020, the millennial generation will make up more than half of the Canadian workforce. Constant feedback, clear com- munication and collaborative work environments are key en- gagement drivers for this group. Peadar Walsh is head of marketing and communications at BI WORLD- WIDE Canada, a global leader in sales performance, employee engage- ment, and rewards and recognition solutions. For more information, visit www.biworldwide.com.

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