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I ncen t i ve And Pr emi um Pr oduc t s by Kristina Valdez Putting Your Money Where Your Mouth Is F rom gift cards to luxurious pens, premium merchandise and reward programs demonstrate an appreciation for excellence without having to say a word. According to the Incentive Research Foundation (IRF), 34 percent of incentive programs, including corporate gifts, wellness programs and loyalty programs, continue to operate with minimal or no changes to budget despite companies dramatically cutting costs in the face of the pandemic. Incentive programs create positive economic value for businesses apart from “soft” outcomes such as engagement, morale and loyalty. While industry companies look for ways to bounce back during the pandemic, employers should refocus recognition programs to help drive recovery. Within a business improvement strategy, incentive programs are one of very few tactics that offer a direct correlation between costs and outcomes. According to the IRF, 75 percent of U.S. businesses use non-cash rewards and recognition to motivate and engage their workforce, spending more than $77 billion annually. According to PPAI Research, almost eight percent of annual industry promotional product sales are related to employee recognition programs, more than five percent are for customer incentives and four percent are for employee incentives. Support of incentive programs has increased significantly among top-performing companies, according to IRF’s “The 2020 Top Performer Study.” Top-performing companies, which are identified as companies that sawmore than a five-percent growth in sales over the past year, reported major increases in “excellent ratings” in key areas such as participation (81 percent), alignment to corporate goals (54 percent), manager buy-in (52 percent), budget (26 percent) and executive support (29 percent). During difficult times, employees need to feel appreciated more than ever, and incentive programs can help lift the mood. IRF’s report found that incentive programs change behavior, leading to Despite the major impact of COVID-19 on the workforce that has forced every industry to adjust to staff changes and work-from-home mandates, reward and recognition programs still play a vital role in motivating employees and boosting company morale. 48 | SEPTEMBER 2020 | GROW