Tuesday 21st June 2016
Research has shown that incentive travel is one of the most powerful methods when looking to motivate staff. So what is it and what are the benefits?
Incentive programmes are defined as a motivational tool to enhance productivity, or achieve business goals in which participants earn the rewards based on a specific level of achievement.
Lets start by looking at the alternative, cash incentives. A recent report carried out by C&IT Magazine, revealed that according to a Wirthlin Worldwide survey of 1,000 employees, 29% spent their cash incentive on bills, 11% put their money straight into savings and 18% couldn’t even remember what they’d spent their cash incentive on. In addition, a Harvard Business Review study found that money is the most expensive incentive as it’s purely transactional for the employee, where as other rewards offer far greater added value.
From an employee’s perspective, travel satisfies people’s inherent desire to see the world. It motivates them to achieve goals and makes them feel valued. Staff are motivated by both the incentive and the recognition awarded to them by their managers and their peers.
For the qualifiers it creates lasting memories and gives people time to get to know each other and bond. Group travel also opens doors to experiences not attainable by individuals, creating money-can’t-buy experiences.
For the company, not only does it increase, sales, profits or productivity there are significant side effects; it builds advocacy and loyalty, it helps attract and retain the best people, it increases morale and fosters a positive corporate culture.
And the best news, ultimately it should pay for itself. The SITE International Foundation wrote in a recent article that for every dollar spent in travel, businesses benefit from an average of $12.50 in increased revenue and $3.80 in new profits.
It’s not just for employees. Incentive travel and reward programmes can be used to boost your business externally. They can be used to engage your partners and clients to make sure your product or service is at the forefront, to cultivate and maintain relationships, to strengthen product awareness and to motivate clients to buy more and resellers to sell more.
Within the Smart Live team we have experience in delivering high-end incentive programmes for major corporations and brands both internationally and in the UK. If you’d like to discuss how to structure a programme or looking for some fresh ideas to rejuvenate an existing scheme please get in touch.
Head of Client Services