Category: Years of Service Award Programs

Years of Service Award Programs

Spotlighting Merchandise Rewards

spotlighting merchandise rewardsSmall businesses are experiencing high levels of success utilizing incentive programs that feature merchandise rewards, according to a recent IMRA (Incentive Manufacturers and Representatives Alliance) survey/study.  The survey was conducted in partnership with the IRF (Incentive Research Foundation) and focused on companies with between $1 million and $50 million in annual sales.

IMRA found that 55% of U.S. small businesses use merchandise rewards, and 72% of them reported moderate to significant growth.  According to the report, distribution of rewards is consistent with larger companies, using merchandise for reward/recognition/appreciation of employees (89%), salespeople (87%), distributors (83%) and customers (80%).  Top merchandise rewards are awarded for a variety of objectives, including customer gifts (60%), top performers (59%) and sales quotas (53%).

The target audience responded quite favorably about the effectiveness of merchandise rewards –

  • Our merchandise incentives work: they influence morale: 82%
  • The merchandise we include is fresh and interesting: 77%
  • Merchandise as reward is an effective motivator: 80%
  • We provide merchandise rewards as additional, “different” benefit besides compensation: 76%
  • The merchandise rewards we provide reflect who we are as a company: 71%
  • We are satisfied with the way our merchandise incentives work: 76%
  • Our merchandise incentives work – they influence behavior: 70%
  • Merchandise rewards are more memorable than cash: 61%

Companies are using a wide mix of award types, including apparel, electronics, food/beverage, housewares, sporting goods, cameras, watches, clocks and luggage.  Only 5% responded that they utilized gift cards/cash.

Program Rewards are Only Part of the Solution

This report confirms the value of utilizing merchandise rewards for incentive and recognition initiatives, but rewards are but a part of the overall solution.  Successful incentive and recognition programs are built around a clear understanding of objectives, solid program management tools and technology, and effective communication.  Half of the target audience in this study run points-based merchandise reward programs.

For a rewarding experience, contact us today and learn more about our incentive and recognition solutions.  Click here to review the full IMRA Small Business Merchandise Market Study.

Demonstrating Appreciation

Recently I had reason to review Abraham Maslow’s Hierarchy of Needs and was pleased to discover this Compensation Café article by contributing author Derek Irvine (check out Derek’s blog here – highly recommended).  Maslow’s summary of needs, wants, fulfillment and self-actualization is well known and certainly relevant to employee recognition and improving employee engagement. Last… Read more »

Reflecting on Thanksgiving and Appreciation

Even though the Thanksgiving holiday is almost a week past, memories are still fresh enough that many are still talking about the good food, fellowship and festive spirit enjoyed.  Our appreciation of the blessings we often take for granted is heightened as we reflect on time spent with family and friends. Thanksgiving and appreciation for… Read more »

Incentive Programs in a Connected World

If you are a regular reader, you may have noticed that several of our blog entries stress the importance of effective program communication within any incentive program.  Whether you are awarding years of service points in an employee recognition program or communicating your latest sales promotion within a channel sales program it is important to… Read more »