Motivation is integral to any successful people management role. If people can be encouraged, persuaded or developed in such ways as to improve their effectiveness, then business can and will improve. Motivated workers are more productive, and higher productivity usually means higher profits - especially important in the current tough economic conditions.
But what's the best way of rewarding what is often a very disparate group of people? Most companies will, after all, have a workforce consisting of people at different life stages: some may be Baby Boomers, others may be part of Generations X and Y. These personnel will have varying interests, and there may be a broad spectrum of socio-economic groups represented.
Life today moves at an increasingly hectic pace which, in itself, can cause problems in planning and running an incentive scheme. Add to this a diverse range in ages and interests, and the problem is magnified. Just to illustrate how quickly times change, Generation X (born between 1965 and 1982) has never used a slide rule; Generation Y (born between 1982 and 1993) has almost certainly never used MS DOS, and Generation Z (born between 1994 and today) has probably never heard of dial-up internet. Generations Y and Z have never lived without personal computers and online shopping, and have different values and needs which can create any number of challenges.
These groups are accustomed to a plethora of choice and information in all areas, with immediate and efficient access to search engines, the internet and online shopping via the digital revolution. This huge number of options is something Generations X, Y and Z take for granted and, through the power of the internet, they're able to find what they need in seconds at the click of a mouse.
To the "technologically orientated new world", we can add the rise and rise of Web 2.0 and social networking sites such as MySpace, Facebook and Twitter; in addition, blogs are now an everyday part of life.
If people can be encouraged, persuaded or developed in such ways as to
improve their effectiveness, then business can and will improve.
So, given the diversity in the workforce to be incentivised, it's vital to profile the target audience before selecting a reward. Each generation's characteristics should be examined in order that their experiences can be understood; in addition, researching the demographics will help ensure that an attractive and relevant incentive is chosen, and that personnel become engaged with the scheme. Engagement requires the buy-in of both parties - management and personnel - and if nothing compelling is offered, then benefits will not be reaped.
Looking more closely at Generation X and Y (who are of working age), we can see that Generation Y inhabit the sphere of Web 2.0 more frequently than other groups, and are perceived as ‘digital natives'. Social media encompasses a huge number of sites, from social networking sites to gaming platforms to communication on a massive scale. And negative use of social media can have a detrimental effect on a brand, especially if disgruntled personnel or customers set up a blog about a company and its service.
But when it comes to satisfaction in the workplace, it's fair to say that other factors are involved in creating happy employees. Generation X, for example, will seek out an environment that's friendly and casual, and that is technically up-to-date. They'll have a strong work ethic and care less about status than, say, the Baby Boomers generation. Generation Y love brand names and technology, and have benefited from the creation of Google, YouTube and MySpace. They seek quick access to information, and instant gratification.
It's therefore vital that, as technology generally continues to impact on the work environment, incentive programmes will need to adapt by becoming increasingly technology-driven and interactive themselves. And as most personnel are now so used to working with online platforms, this will also apply to the rewards being offered.
Technology is able to provide a powerful communication tool within a company, opening up channels for intranets and email communication, and online schemes can provide immediacy with strong links between action and reward. Additionally, intelligent use of data allows for personalisation at different points in employees' lives.
Most online incentive schemes use a system where points are earned through achievement of a number of objectives, such as increased sales, improved customer service etc. Most schemes of this type allow participants to select their own rewards, and retail vouchers and gift cards continue to be very popular as a tried and tested incentive, providing the huge choice that appeals to all demographics, and to all generations. As well as a choice in the range of merchandise available, today's employees will also be looking for the chance to shop online, via transactional websites, and to be rewarded with e-vouchers, or vouchers and gift cards with a multi-channel functionality which can be redeemed online as well as instore.
As a general rule, well-motivated personnel provide better levels of customer service and are more likely to stay with a company, growing in experience and becoming even more valuable. And, of course, if a business retains its staff, the cost of recruiting and training new personnel is reduced. A structured staff incentive programme can also help in reducing turnover by making personnel feel valued - something that all business owners strive for.
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