Fortunately, incentive and recognition programs have proven to be one of the most effective vehicles for combating challenges like these.
Global corporations now lose up to 30 % of their customers each year, half of their customers in five years, half of their employees in four years, and half of their investors in less than a year. In some countries and industries, the metrics are much more alarming.
The bad news is that all indicators predict that these challenges are only going to increase in the future.
Voluntary resignations are rising again; demographic shifts point to shortages of skilled and key talent worldwide, and executive mobility is doubling each decade. Each one of these issues individually could derail the best-laid plans of any multinational organization – collectively they raise an enormous red flag.
Fortunately, incentive and recognition programs have proven to be one of the most effective vehicles for combating challenges like these.
A wealth of data now exists that demonstrates the power of these programs to achieve their objectives and studies have shown that companies who embraced a culture of recognition and engagement have significantly outperformed their competitors who focused their efforts elsewhere.
Engaging your global workforce through incentive and recognition programs can vastly improve productivity, employee morale, customer loyalty and corporate profitability.
Companies who have rewarded employees for behaviors critical to corporate objectives have outperformed their counterparts in revenue growth, net income per employee, job growth and stock performance.
Complexity is by far the biggest obstacle – and often the biggest deterrent – when implementing or expanding a program internationally. It is possible, although perhaps not advisable, to self-administer a global recognition or incentive program, but I’ d suggest that you’ d be well advised to seek professional help.
The sheer number of different issues that must be addressed – even in a modest program in one other country – make professional guidance a worthwhile investment and will help to insure that your program seamlessly and costeffectively achieves its objectives. We will address all these issues in this article series.
While moving a program across a border can be a challenge, don’ t ignore the opportunity to gain a competitive edge in the marketplace – it can literally mean the difference between thriving as a company and perhaps ceasing to exist. The research and data strongly support what many of us have known for a long time … incentives and recognition programs are very good business.
Named one of the most influential women in the incentive industry, Michelle M. Smith, CPIM, CRP, is an accomplished international author, speaker and strategist. She’ s past-president of the FORUM at Northwestern University, president emeritus of the Incentive Marketing Association, vice-president of research for the Business
Marketing Association, and vice-president of marketing for O. C. Tanner.
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