Reward&recognition programmes

LOYALTY &
REWARDS
CONFERENCE
2013
DIGITAL PLANET: ONLINE INCENTIVES

The benefits of having a successful Reward & Recognition or Channel Incentive
Programme in place as part of your strategy |
Michal Lipschitz, Digital Planet Online Incentive Innovation Manager.

Email | michall@digitalms.co.za Phone | 0861 115 313 Cell | 072 236 3376

Some statistics that are important to know
about staff retention:
• 74% of employees would consider a new job opportunity
• 50% of employees have considered leaving their current jobs
• 21% have applied for another job in the past six months
• 66% would change jobs for the right opportunity
• 5% of employees say they intend to remain in their current positions

Employees who said they might leave consist of key players.

“The Retention Myth and A Culture Of Innovation”
(...Research by the FORUM for People in Business)


DID YOU KNOW:…
Recent research shows that employees at

“Rewarder Organisations” (organisations that do reward)

generate ideas 250% more frequently than employees of

organisations that are not rewarders.

The Retention Myth And A Culture Of Innovation


THE BOTTOM LINE:…
• Everyone wants to be appreciated.

• Everyone wants to be recognised.

• And everyone wants to be rewarded for a job well done.

The Retention Myth And A Culture Of Innovation


WHAT’S THE DIFFERENCE BETWEEN
INCENTIVE PROGRAMMES
(SALES & CHANNEL INCENTIVE)
AND REWARD & RECOGNITION


INCENTIVE PROGRAMMES AND REWARD & RECOGNITION
VS.
LOYALTY PROGRAMMES

channel, sales & staff incentives loyalty


WHAT’S THE DIFFERENCE BETWEEN INCENTIVE PROGRAMMES AND REWARD & RECOGNITION

Recognising or rewarding
employees for producing
high quality results in order to
encourage repeat actions.



Recognising or rewarding Programmes which are Effective tools for identifying
employees for producing the key players moving your
designed to incentivise products by forging
encourage repeat actions. specific behaviour in order to successful relationships
with channel partners,
achieve specific sales which entails rewarding
objectives. and motivating their
behaviour.



Recognising or rewarding Programmes which are Effective tools for identifying
employees for producing designed to incentivise
specific behaviour in order to the key players moving your
encourage repeat actions. achieve specific sales products by forging successful
objectives.
relationships with channel
partners, which entails
rewarding and motivating
their behaviour.

THE BIG QUESTION …

Do incentive programmes
really work?


THE BIG QUESTION …

YES
Incentive programmes DO work
...if applied correctly!


CASE STUDIES…

Successful Case Studies:

• HP Synergy (Channel Incentive Programme)
• DP All Stars (Reward & Recognition Programme)


CASE STUDY: HP Synergy - Retail Channel Incentive Programme

Unique login
details for each
participant

Login Page to HP Synergy


Objectives of the Programme:

• To establish a sense of loyalty with the
Vodacom sales staff and keep the HP
offer top of mind.

• Increase HP Notebook sales within the
Vodacom channel / retail stores

• Reward specific behaviour

An example of an e-mailer that was sent out to
the HP Synergy database.


THE PARTICIPANT’S JOURNEY

Communication
• *We handle the validation process. (Email & SMS)

• All our programmes leverage our online
incentive platform called JAM which has been
evolved over the last seven years.


Results...

1 2 3

HP Synergy April 2012 – Jan 2013
Total Participants 832
Total Stores 168
Total Products Sold (registered on the programme) 2089


Results...

1 2 3

The programme has helped An annual increase in Vodacom More than three years later, the
HP to strengthen its stores of HP sales by 30% since programme continues to thrive.
the programme’s inception.
brand and to develop
•We have grown the database by
one-to-one relationships 60%.
with the Vodacom
sales staff.


Results...

1 2 3

The programme has helped An annual increase of HP More than three years later, the
HP to strengthen its sales by 30% in Vodacom programme continues to thrive.
brand and to develop
stores since the
one-to-one relationships •We have grown the database by
with the Vodacom
programme’s inception. 60%.
sales staff.


Results...

1 2 3

The programme has helped An annual increase in Vodacom More than three years later,
HP to strengthen its stores of HP sales by 30% since the programme continues to
brand and to develop the programme’s inception.
thrive.
one-to-one relationships
with the Vodacom
sales staff. We have grown the
database by 60% in the last
CHALLENGE: 3 years, as well as increase
HIGH STAFF TURNOVER IN STORES, REQUIRES the amount of stores on the
CONSTANT UPDATING OF THE DATABASE programme by 800% since its
inception.


CASE STUDY: Reward & Recognition Programme “DP All Stars”

Last year we decided to introduce our own internal staff recognition programme at
Digital Planet in order to motivate, retain and recognise our own staff.

Objectives of the Programme:
• Improve staff retention
• Motivate staff so as to improve general performance and productivity
• Improve general staff morale



Unique login
details for each
participant

Login Page to the DP All Stars Reward & Recognition Programme



IN A NUTSHELL...

NOMINATE A
COLLEAGUE

THEY GET
RECOGNISED!
CHANGE IN BEHAVIOUR = GREATER STAFF SATISFACTION =
STAFF RETENTION & INCREASED PRODUCTIVITY



THE PARTICIPANT’S JOURNEY

Login to the
portal

A winner is
selected based Nominate a
Team Member
on amount of for excellent
nominations work
The winner is
received
announced at
the monthly
staff meeting

Nominations are The nomination
tallied up at the will be accepted
end of each / rejected by
month management


Results...

DP All Stars Values

Dedication Quality Long Term Relationships



• Each month’s WINNER receives a hamper of goodies

• Their picture is also displayed at the reception of the building

• A picture of the winner is placed on the DP All Stars site

January 2013: DP All Stars Winner


Results...

• The programme has improved staff happiness and staff retention - not 1 person has left
the company in the past 4 months. (being valued, being recognised / seen)

• A happy work environment leads to a more productive work environment.
(people look forward to nominating and being nominated)

• 60% of the staff have been nominated – which shows that not only the top 10-20% are
being recognised.

• The programme has given management insight into the company culture.

• A well organised programme can help to instil company values if it is correctly aligned .

CHALLENGE:
MEASURING THE EFFECTIVENESS OF ANY REWARD & RECOGNITION PROGRAMME


OUR METHODOLOGY
WHO...ARE YOU
INCENTIVISING / REWARDING?
• Don’t only reward your top performers - Top performers are already
performing.

• Motivate the large group of average performers to behave the same
way the winners do and reward the top 20% for sharing their knowledge
and what they are doing.


OUR METHODOLOGY
HOW (THE REWARD)

• The most effective solution is to offer a combination of cash and tangible
rewards as a long term solution.


OUR METHODOLOGY
WHAT
When it comes to sales people you want to improve how they go about
getting a result.
You could try to incentivise your sales people to meet higher sales
quotas.

Or...
You could reward people for separate
behaviours
eg. You could reward sales reps for
acquiring knowledge about how to do their
jobs better from the top 20% performers
who share what they know with colleagues.


THANK YOU

“Call it what you will, incentives are what get people to work harder.”

Nikita Khrushchev
(Soviet Union Leader during the Cold War)


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