In mid 2007, Online-Rewards was asked to be a 'technical expert' for the Cincinnati Business Courier in regards to Incentive Program Technology. Once a month we answered questions related to the implementation of the Rewards Programs. They are reprinted here for your information.
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| 1. There seems to be an increase in the popularity of incentive programs, how do you account for this? |
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| 2. How can I use an incentive program to increase my sales? |
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| 3. How can incentive programs help me retain employees and save money? |
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| 4. How should I calculate my rewards program budget? |
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| 5. Why should I consider merchandise rewards when I already offer cash incentives? |
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| 6. I have a database of loyal customers, how can I leverage this with an incentive program? |
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| 7. How much time should I allocate to running an effective Reward Program? |
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| 8. How do I convince the decision makers in my company that implementing employee programs is a good investment? |
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| 9. What differentiates you from other employee program vendors? |
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How can incentive programs help me retain employees and save money?
It is commonly believed that employees do not leave companies strictly due to salary alone. Employees who feel under-appreciated start looking for new opportunities where they have a bigger impact or are rewarded and recognized for their day-to-day contributions. It is estimated that the cost to hire and train quality employees can be up to 150% of a year's salary. This has a massive impact on the labor costs for companies with high turnover rates.
Incentive programs that recognize employee contributions can be used to boost employee morale and increase retention at a considerably lesser cost when compared to salary changes. Managers can recognize staff for outstanding performance and contributions to the business. Programs can be structured to allow employees to nominate other employees to strengthen team spirit. Once in place, companies can extend incentive programs to include awards for years-of-service and performance bonuses that reward employees based on the overall success of the company.