Sept 2008: Gen Y responds to regular rewards

Date: September 2008
Publication: The Australian Financial Review, Special Business Incentives Report

Excerpt:

Because of Gen Y’s supposed need for attention, your boss is more likely to say thank you than ever before – and to say it with an experience incentive such as a balloon ride at sunrise.

With companies tightening their belts, those little extras – consultants, office expresso machines, staff training courses and glossy marketing brochures – are often the first to go during cost-cutting drives. But they are not eliminated.

‘With an economic downturn you would naturally expect a tightening of the purse strings,’ says Adrian Finlayson, chief executive of Accumulate, a company which designs reward and recognition programs for employees.

‘However, progressive companies are looking for smarter ways to invest in their most valuable assets, being their people. We are continuing to work with clients to design recognition and incentive programs that build and maintain staff morale, boost business confidence and increase employee engagement – ultimately, delivering increased profits.’

Programs which encourage staff to work harder, maintain their performance and even stay with the same employer, usually employ incentives and rewards. Carrots manifest in a variety of ways, from a simple hand-written thank you note from the boss, movie tickets or a dinner for two, through to a weekend away, a sport-related activity during an offsite strategy weekend, or a hefty end-of-year bonus in hard cash.

‘The experiences that are a reward or gift range from adrenalin rushes such as sky-diving, helicopter tours, hot-air ballooning, abseiling and rock-climbing,’ says Finlayson. ‘For female employees, the most popular experiences are spa treatments, weekend getaways, gourmet tours and theatre shows.’

Traditionally, these types of rewards were given out to people at annual events. ‘But the influence of Generation Y and their demand for more frequent and instant recognition has created a shift towards more prompt, frequent and consistent acknowledgement of their achievement,’ says Finlayson. ‘Hence, most experiences are given away today through formal, and well-structured online recognition and incentive programs, resulting in a very even use of experiences throughout the year.’

The second type of reward and recognition programs are ones which create ‘glory moments’. Finlayson explains: ‘It can be as simple as an animated e-card to say thank you, a giant novelty cheques presented to top achievers at the annual awards dinner or movie vouchers gift-wrapped with a recognition certificate.’

The secret to successful reward and recognition programs is to make an emotional impact.