When sales, marketing and HR leaders want to launch a new incentive program or tweak an existing one, they often start with a general Google and social media search. They can find excellent information – like the comprehensive report this article is part of – but that can be a problem.
Once loaded up with information on how to properly implement an incentive or recognition program, some companies feel they can take a DIY approach, while others choose a third-party partner in the reverse order they should.
Although the information reward users find online can be quite helpful, the source may or may not provide the best solution for their needs. For example, when I Googled the term “employee engagement,” I found excellent content about how to achieve it, then realized it was posted by Snacknation, a company that sells employee snack subscriptions. This might be an excellent employee benefit, but it is not the incentive or recognition program I was seeking.
In my 25-plus years of experience as an engagement consultant in the incentive industry, I have identified six steps that can help business leaders select the most appropriate incentive agency for their program needs:
- Strategy
Determine if the desired business objectives can be accomplished through improved engagement of your workers or business partners, or could it be a supply, technology or other issue? Ask these important questions:
- Who are the people that can accomplish the results needed based on the business objectives?
- What behaviors are required to accomplish them?
- How much money and resources can be invested in a program?
- Are there support team members who should be part of the program as well?
2. Solution
EIf people can accomplish the business objectives, is an incentive or recognition program the most effective solution, or might the performance issue be related to ineffective communications, compensation, training or enablement?
Consider whether a longer-term integrated engagement program should be developed vs. a tactical incentive or recognition program? Are there multiple programs that should be implemented for the various stakeholders? Have existing or past programs been assessed to determine improvements?
- Sequence
If multiple programs are required, in what order should they be implemented? For example, if a sales incentive program makes the most sense, should a sales training program be launched before the incentive period begins to ensure the best results? When should a customer support team program be implemented?
- Services
There are 10 services needed to operate an effective engagement program. Even if a tactical incentive or recognition program is desired, all of them should be considered to achieve the desired results.
Specific questions should be answered before determining a supplier. These include which of these services will be outsourced to an incentive agency partner and which can be handled in-house?
Also, what types of incentive rewards should be included in the program? Options include specially curated merchandise or travel experiences, points that can be accumulated and redeemed from a vast catalog selection of items, gift cards and group incentive travel experiences. Decisions here may be impacted by how geographically dispersed your participants are.
The 10 services of an engagement program are:
- Assessment – How have past programs worked? How much can be budgeted? etc.
- Program design and administration – Who will be involved? What are the program rules and measure? How will the program be administered and reported?
- Communication – Will there be a program website, app, materials, promo items?
- Training – What do the participants need to know to achieve the objectives?
- Rewards – Which rewards make sense for the participants, budget, theme, etc.?
- Recognition – What is the criteria and how will people be recognized?
- Coaching and Mentoring – how will participants be coached and mentored?
- Innovation – How will the program encourage and process innovative ideas?
- Tech platform – What technology will be used to manage, measure and report?
- ROI analysis – What is the methodology to forecast and measure return on investment?
- Suppliers
There are thousands of incentive and recognition agencies, as well as specialized program technology and rewards vendors that are capable of supporting programs. It’s important to consider all four steps above before determining your agency partner. Do you need a full-service agency that can outsource all the 10 services above and manage the entire program, or a tactical vendor that can provide just one or a few of the services you need? What is the process, service and support level and pricing for each agency being considered?
- Success
How will you measure results? Is your partner on board with that? Do you have an ROI methodology? Do the agencies or vendors you are considering measure ROI or is it something you should plan for separately? To properly assess program ROI, measures must be planned from the beginning during program design and measured throughout the program operation to determine changes that might be needed along the way.
