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1
Top 12 Incentive Trends of 2012: What they Mean For
Your Business Motivation Show Session SM011 - Room W475b
October 2012
Our Mission
• Advance the Science
• Increase the Awareness
• theIRF.org
2
Today’s Topic
3
White Paper
Stats/Sources
Questions
#1: The Velocity of Change is Increasing4
Fall Session
Barrier to Growth
Pulse Studies
Highlights: Core Issues
5
Sep-0
8
Oct
-08
Mar-
09
Jul-09
Nov-
09
May-
10
Oct
-10
May-
11
Oct
-11
Mar-
12
Sep-1
2
30%
40%
50%
60%
70%
80%
90%
100%
84% 86%
75% 73%77%
81%
93%
74%
61%
68%74%
47%
64%
31%
40% 39%43%
64%
42% 41%44%
49%
45%
75%
63%
52%
61%64%
69%64%
49%44%
48%
0.546
0.617
The company financial forecast influences the design and implementation of incentive programs
Competitors’ reactions to programs impact the products and services included in company incentive programs
Perception of the Public significantly influences the design of our incentive program(s). *
Perception of internal (non-incentive) stakeholders significantly influences the design of our incentive program(s).
*Previously question was asked as; “Sensitive to perceptions of program extravagance to the extent that it would impact the type of company program awards and inclusions”
Perceived Impact of the Economy on Ability to Plan and Implement Incentive Travel Programs
6
In the coming year what impact will the economy have on your ability to plan and implement travel incentive programs? (N=151)
Mar-
09
Jul-09
Nov-
09
May-
10
Oct
-10
May-
11
Oct
-11
Mar-
12
Sep-1
2
4 2 3 310 9 6
0 0
4 6 5 85 10
49 5
3
1828
61 50 40
19
51
38
4
6
11
7
8 16
9
18
20
43
51
38
1722 21
55
22
3143
18 155 5 4 7
15
No Answer Strongly Positive Somewhat PositiveHave No Impact Somewhat Negative Strongly Negative
Perceived Impact of the Economy on Ability to Plan and Implement Merchandise Non-Cash Incentive Programs
7
Do you anticipate budgets for merchandise non-cash incentive programs in the coming year to…(n=124)
Mar
ch-0
9
July-0
9
Nov
embe
r-09
May
-10
Octob
er-1
0
May
-11
Octob
er-1
1
Mar
ch-1
2
Septe
mbe
r-12
33 3320 15 13
3424
0 0
4 1
22 2
4
1
11 12
11 19
24 39 44
28
2442 38
1723
20
21 1920
2731
28
3119
27
23 2211
1816 20
5 5 70 2 3 6 1 2
No Answer Significantly Positive Slightly PositiveHave No Impact Slightly Negative Signficantly Negative
1. “Fast HR” = Growing need for Non-cash R&R
2. Shrinking planning cycles
3. Elevated decision-making
4. Increased focus on “agility” and “above and beyond”
5. Continued concern over “extravagance”
IMPLICATIONS
Velocity of Change
8Trend 1
Trend #2: Budgetary Pessimism [?]9
Anticipated Changes In Coming Year With Regards To Incentive Travel Accommodations
10
Don't Know
Number of room upgrades increased
Total number of days/nights increased
On-site inclusions per participant increased
Total number of rooms increased
Number of room upgrades reduced
Change to "all inclusive" pricing options
Number of rooms reduced
Total number of days/nights reduced
On-site inclusions per participant decreased
No change
0% 5% 10% 15% 20% 25% 30%
1%5%5%
7%9%10%
12%18%
21%21%
27%
In the coming year, what changes, if any, will be made with regard to accommodations for incentive travel programs? Check all that apply.(n=151, multiple response)
Anticipated Changes This Year With Regards To Merchandise Non-cash Incentive Programs Award
Selections
11
Decreased merchandise award value
No change
Decreased use of debit/prepaid gift cards
Added debit/prepaid gift cards
Included experience-related (SPA, event tickets, etc.) as an option
Added merchandise
Increased use of debit/prepaid gift cards
Included individual travel as an option
Increased merchandise award value
0% 10% 20% 30% 40%
13%
16%
17%
24%
27%
29%
31%
32%
36%
With regard to merchandise non-cash incentive programs, what changes,, will be made this year with award selections? Select all that apply. (n=75)
Anticipated Changes In Incentive Travel Program Budgets for This Year
12
Significantly increase
Slightly increase
Remain unchanged
Slightly decrease
Significantly decrease
0% 10% 20% 30% 40% 50% 60%
1%
31%
48%
18%
3%
In the coming year, do you anticipate budgets for incentive travel programs in general to… (n=151)
Anticipated Changes In Non-Cash Incentive Program Budgets for This Year
13
Significantly increase
Slightly increase
Remain unchanged
Slightly decrease
Significantly decrease
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
5%
44%
41%
10%
0%
Do you anticipate budgets for non-cash incentive programs in the coming year to...(n=124)
Travel: Cutting back on gifts, shortening trips, Booking Off Season, Staying in North America Caribbean
Growing Use of Individual Travel
Growing Use of Gift Cards (50-60%)
IMPLICATIONS
Budgetary Pessimism
14Trend #2
Trend #3: Mobile is the New Static15
1.7B x 3
50% Adv.Users
10% natives
1/3 prefer Phone
Growing Preference of Mobile
10% Using – 35% Implementing
24/7 Access Is An Expectation
Gamification, QR Codes, Social media
Security Concerns
IMPLICATIONS
Mobile Uprising
Trend #317
Game Mechanics Are Everywhere18
2011 Tipping Point
70% have 1
50% Innov
Common Principles
NOT ABOUT SPIN & WIN Employees & consumers expect
technology to be engaging
Ensure skill level matches required performance
Games increase retention
36% incentive planners using gaming mechanics on website
Dell World Conference
Game Mechanics
IMPLICATIONS
Trend #419
Trend #5: Proof Positive20
Acceptance = Opportunity, not shoe in
Provide Research (see appendix) Map Implications Show ROI Ensure process is clear and transparent Speak their language
IMPLICATIONS
Proof Positive
Trend #5
21
Trend #6: We’re All Marketers Now22
Growth in “Brand Alignment” and “Customer Service” Efforts
CMO’s must be aware of R&R Infrastructure
More Cross-Functional and Team Collaboration Efforts
IMPLICATIONS
We’re All Marketers Now
23Trend #6
Trend #7: Retention and Culture24
75%
50%
21%
5%
The Myth: Happy to Have a Job
Trend #7: Retention and Culture25
Management High Potentials
40%
25%
Who Are They
Negative Impact on Culture (59%)
Success of ‘Rewarder Organizations’ Generate 250% more Ideas
Importance of R&R for Efforts/Results
R&R for Collaboration/Teamwork
IMPLICATIONS
Retention Myth and a Culture of
Innovation
26Trend #7
Trend #8: We’re High Tech and Low Touch
27
75% Allow Social Networks
Doubled over 55
Preferred Method
Collaborate
A
Social/Virtual Workplace & the Need for
Face to Face
Virtual Distance makes business travel a valued luxury
Integrating Social Media Imperative
Face to Face Imperative for new teams and positive emotional climate
IMPLICATIONS
28Trend 8
Trend #9: Wellness Required29
Starbucks
#1 Spending
> 39 on infant, female, male mortality
25 by 25
75% treatable
Wellness programs return $3 for each $1 invested
R&R increases participation (a lot!)
Integrate Wellness and R&R programs
Include healthy lifestyles in travel programs
IMPLICATIONS
Wellness Required
30Trend #9
#10: Convergence and Integration is Common31
Technology Convergence – 30% Job Footprint – 2/3 Unpaid OT – Overemployed
Convergence of Jobs and Tools
Continued Tool Integration
Ensure you are aware of technical and role landscape
IMPLICATIONS
Convergence and Integration
32Trend #10
Trend #11: Globalization33
BRIC Growth (3B)
¼ economic activity is global
Symposium
GLOBALIZATION
Growing middle class (BRIC)Global companies need to align &
engage employees worldwideRequires local relevanceR&R need to reflect local cultureOne size does not fit all
Communications Legalities
IMPLICATIONS
34Trend #11
Trend #12: Corporate Social Responsibility35
Top 10 on Exec Agenda
2/3 don’t know how to make it relevant
48% of Planners
R&R needs to be “CSR sensitive”Digital vs paperEco-friendly travelSourcing of awardsEmployee participation voluntary
IMPLICATIONS
Sustainability
36Trend #12
Questions
37