PPB November 2015

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percent) are not engaged and 16.8 percent
are actively disengaged (think bad-
mouthing their employers, just going
through the motions, maxing out their sick
days, etc.).
As unemployment continues to drop and
it becomes an employee’s market, company
leaders are increasingly focused on attracting
and retaining talent, with an emphasis on
engagement strategies as a way to accom-
plish this.
In addition, as the talent pool in the U.S.
shifts dramatically over the next decade,
employees with industry experience, contacts
and unique skillsets will be able to write their
own ticket.
Not only will younger generations of
workers need to develop these necessary
skills in a hurry, but there will be fewer
employees in general. Due to the size differ-
ence between Generation Xers and Baby
Boomers, the working population is set to
shrink by 30 percent.
Leaders must now attract high-per-
forming Gen Xers while enticing Baby
Boomers to stay longer. Each day, more
than 10,000 Baby Boomers are turning 65
and many are opting for retirement in some
form. The American Society for Training
and Development reports that, this year,
76 percent of U.S. jobs require highly-
skilled workers, and 60 percent of new jobs
require skills held by only 20 percent of the
population.
As engagement strategies capture atten-
tion at the CEO level, businesses investing in
a culture of appreciation are expecting
employee engagement to provide revenue-
related results, such as:
• Lower absenteeism/higher productivity
• Higher profitability
• Effective change management
• Efficient collaboration across departments
or divisions
• Front-line innovation within the
organization
This makes sense in an economy where
customers are the co-creators and drivers of
brands, and where employees recognized as a
company’s greatest asset are the critical com-
ponent in the strategy.
Increased focus on driving better out-
comes opens the door for providers of non-
cash award programs to help companies
achieve measurable goals such as increasing
sales, employee retention, productivity, cus-
tomer satisfaction, safety, wellness and
more.
The initial intent of the employee
engagement movement that started a
decade ago was to ensure that employees
were engaged in their core job roles. In our
new economy, successful companies need
their employees to go above and beyond
their core job functions to be brand advo-
cates, innovators, change agents, trainers
and more. Incentive reward and recognition
programs are designed to reward and recog-
nize those who achieve goals and exceed
expectations.
A 2012 study by the Aberdeen Group
documents some of the outcomes that non-
cash reward and recognition programs pro-
vide for a sales organization:
• Increased sales quota attainment
• Higher year-over-year sales quota
attainment
• Higher average sales quotas (vs. the
market)
• Higher customer service ratings
Why Incentive Programs Need An ROI
Assessment
Although measurement and determining
return on investment are among the 10 steps
to effective incentive program design (read
the how-to’s in PPB’s September 2015 issue,
page 55), a recent study by World@Work
found that only 11 percent of organizations
that run incentive programs conduct a formal
ROI assessment. When the results of incen-
tive programs are not assessed, it perpetuates
the myth that incentive programs are
touchy-feely and “nice to have but do not
deliver measurable benefits.” In addition to
the obvious financial benefits of calculating
the return on investment of reward and
recognition programs, an ROI assessment
provides:
• The ability to identify program issues early
and course-correct before unintended con-
sequences kick in or resources are wasted
• Necessary feedback for improving the pro-
gram as the environment changes
• Confirmation that the rewards chosen were
effective (or there is need for revision)
• Participant ownership of the program
when they are included not only in the
planning phase but also the post-program
evaluation
54 • PPB • NOVEMBER 2015 GROW
Hands-On Learning:
Incentives And
Recognition
Learn more about how to plan, exe-
cute and measure incentive pro-
grams at The PPAI Expo in Las
Vegas, Nevada. On Monday,
January 11, from 8 am to 2:05 pm,
PPAI is running five sessions within
its incentives and recognition track.
Most of the sessions are free to
PPAI members and to nonmembers
with a ticket, and all earn certifica-
tion points. Find the full list of ses-
sions and descriptions at www.expo.
and register for
the sessions when you register for
the show at .
As unemployment continues to drop and it becomes an employee’s market,
company leaders are increasingly focused on attracting and retaining talent,
with an emphasis on engagement strategies as a way to accomplish this. “
”