Rewards offers to tempt the workers

Author: Paul Robinson
Date: 18 February 2004
Publication: The Age

Australian employers are turning to airline loyalty schemes, hot air balloon trips, shopping vouchers and scuba diving lessons to boost staff productivity.

On top of regular pay rises, companies are finding that special inducements for increasing sales and production schedules and expanding market share in the banking, communications and sales industries, are paying dividends.

According to research by the Incentive Federation in the United States, expenditure for merchandise and travel used by US companies for incentive programs rose $US4billion to $US26.9billion ($AU33.9 billion) from 1996 to 2000.

A new Australian company, Accumulate, has emerged on the local market – estimated to be worth more than $1billion. It has developed software that will allow companies to offer staff Qantas frequent flyer points for achieving productivity targets as an alternative to cash bonuses.

Accumulate managing director Steve Hibberd yesterday said pharmaceutical giant Glaxo-SmithKline would be the first company to offer Qantas frequent flyer points as a reward to Australian staff from next month. Talks were also being held with a ‘second tier’ bank.

Mr Hibberd said that while frequent flyer points had been part of many consumer loyalty schemes this was the first time they had been linked to workplace incentive programs.

He said that Accumulate had targeted 2700 companies that each employed more than 200 staff. About 80 percent of those companies already had some form of incentive scheme that Accumulate wanted to formalise. This would ensure fairness and transparency, preventing some staff from dominating rewards.

Mr Hibberd said research had found cash was overrated as a reward for special productivity. “It sounds bizarre by many staff look at cash as going home to pay the bills of they see a bonus as becoming a part of salary. What we are talking about is linking reward with the special interest of employees.” he said.

For more information about the Accumulate employee recognition rewards programs and software, sales & channel incentive programs or customer loyalty programs call 1300 733 725 or email info@accumulate.com.au