Trends in Recognition Program Rewards

A recent issue of Incentive magazine offered interesting insight into trends in “incentive” programs and 2010 expectations in a reader forecast survey.

Results of the survey found that readers expect more budgets to be cut than increased in 2010, “but companies that maintained programs in 2009 say they gained a competitive advantage.” In answer to the open-ended question on reader plans to maintain and improve motivation and loyalty this year, a top response was “More recognition, both private and public.”

The study in particular looked at travel, merchandise and gift card programs, finding that:

• In 2010 budgets, as compared to 2009, gift card budgets increased or remained unchanged more than budgets for travel or merchandise.
• In terms of number of programs that will be run in 2010 vs. 2009, gift card programs increased more than any other while travel and cash programs were eliminated more frequently.
• For plans to reduce or eliminate travel, merchandise or gift card programs in 2009, gift cards once again were lowest across the board.

What can we conclude from these findings? Companies are finding that programs based around a reward delivery model of gift cards deliver the most return on investment. This is especially true in Globoforce programs that do not require the end-user to figure out what cards to offer in various regions of the world, or how to structure multiple use cards. Our Ex*change Network of global shopping, dining, travel, entertainment, adventure and charity providers lets your recognition recipients easily select the Gift of Choice most relevant and personal to them with the least amount of adminis-trivia on behalf of the company.