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JANUARY/FEBRUARY 2011 contents WWW.PIPMAG.COM

LUXURY’S SWEET High-Value, High-Impact Incentives & CONSUMER ELECTRONICS ROUNDUP: WHAT Rewards Emily Tipping TO LOOK FOR IN 2011 14 In the new economy, many have scaled back their incentives and rewards. Jackie Bardenwerper But luxury is more than a number of dollars. It’s an experience that can 12 Our gadgets and electronic devices have become essential to all aspects transform the way your workforce, partners and customers perform. of our lives. That trend and others are affecting the electronics market now and in the coming year.

KEEPING IT FRESH Creating Effective Long-Term Programs INCENTIVES: COST OR INVESTMENT? Pete Mitchell & Barb Hendrickson Deborah L. Vence When the Great Recession hit, many companies looked for any cost to Want to ensure your long-term incentive program continues to be effec- 20 13 cut, and many incentive programs were eliminated or severely scaled tive? There are several steps you must take at the beginning to get it back. Redefining incentives as an investment is essential. right for the long haul.

READY, SET, ENGAGE! Employee Engagement Delivers Bottom-Line Results Rick Dandes 23 Employee engagement initiatives can have a powerful impact on business per- formance. But translating that message into CFO-speak can be a tricky task.

6 FROM THE EDITOR Do Two Negatives Make a Positive? 26 PERFECT TIMING: WATCHES THAT MOTIVATE

8 NEWS & NOTES 28 A WINNING HAND: GIFT CARD INCENTIVES

ALL THAT’S NEW & INNOVATIVE 34 THE INSIDER Bouncing Back: Incentive Industry Trends 31 Point to Recovery 32 INGENIOUS INCENTIVES & REWARDS >>

PREMIUM INCENTIVE PRODUCTS is published bi-monthly and distributed free to qualified premium incentive product buyers by Hennessy Communications, LLC, 800 E. Northwest Hwy, Suite 111, Palatine, IL 60074. Phone: 847-705-6867; Fax: 847-705- 6878; E-mail: [email protected]. Application to mail at periodi- ON THIS PAGE cal postage prices is pending at Palatine, IL and additional post Waterford Meg 12” Ruby Cased Rose Bowl, see page 17. PHOTO COURTESY OF WATERFORD offices.Copyright© 2011 Hennessy Communications, LLC. All rights reserved. Reproduction in whole or part without written Sony Bloggie, see page 32. PHOTO COURTESY OF SONY permission is prohibited. Subscription rates: $50 per year in the United States, $75 in Canada, all other countries $100. For sub- scription information, call 847-705-6867. POSTMASTER: Send address changes to PREMIUM INCENTIVE PRODUCTS, P.O. Box 7370, St. Paul, MN, 55107

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Do Two Negatives Make a Positive?

“Our desires always disappoint us; for though we meet with something that gives us satisfaction, yet it never thoroughly answers our expectation.” —Elbert Hubbard

WWW.PIPMAG.COM Back in December, I read an Associated Press to assess the program itself. Was it the team that story about a sales team that failed to reach its failed? Or did you set the bar at an unreachable JANUARY/FEBRUARY 2011 goals. height? Did you offer a meaningful reward? Did VOLUME 4 • NUMBER 1 The team, based in Pennsylvania, had been the program participants have the tools they need- promised a trip to Hawaii if they achieved their ed to get the job done? goal, which was a 4 percent increase in sales. There are all kinds of things that can go wrong. PUBLISHED BY Unfortunately, they only made it to 2 percent. All kinds of ways to mess up your program HENNESSY COMMUNICATIONS, LLC It was still an improvement, if not the growth design right from the start, ensuring it will never 800 E. Northwest Highway they were aiming for. And they still got to take a succeed. Suite 111 trip, though again, not necessarily the trip they This is why we always recommend—especially Palatine, IL 60074 PHONE: 847-705-6867 were aiming for. to those who are new to this whole incentives and FAX: 847-705-6878 Instead of basking on the beach, around two rewards game—that you avoid going it alone. E-MAIL: [email protected] dozen sales reps got to spend some time in Fargo, Instead, you should always look for industry N.D., where, according to AP, there was about 2 insiders and knowledgeable experts to partner PUBLISHER & PRESIDENT feet of snow and the temperature was a not-so- with. These folks have experience setting up suc- PAUL HENNESSY balmy 7 degrees Fahrenheit. cessful programs. They know what to avoid. They E-MAIL: [email protected] The funny thing to me about the story was that know what not to avoid. And when you’re ready VICE PRESIDENT while one of the company’s sales managers was to get your program off the ground, you need that CHRIS BELBIN expertise in your corner. (You can find these calling the trip a “punishment,” you could see E-MAIL: [email protected] how it might be fun. They got to drink hot toddies experts through the Incentive Marketing around the fire. They got to go for a sleigh ride. Association, www.incentivemarketing.org, and its EDITORIAL DIRECTOR They got to go to a spaghetti dinner at the local many strategic industry groups.) EMILY TIPPING VFW. They got to watch the movie “Fargo” in But let’s just suppose for a minute that you got PHONE: 847-963-8740 Fargo. everything right, and your team still didn’t E-MAIL: [email protected] OK, OK. I know. It’s not really a reward. At achieve the kind of results that would net them ASSOCIATE EDITOR least, not in the way we talk about rewards on the top reward. What happens next? DEBORAH VENCE these pages. And no, most people wouldn’t volun- The concern here, of course, is that such an E-MAIL: [email protected] teer for such a trip. But somehow, the folks in event might have a negative effect on engage- charge of that sales department took a disappoint- ment, leading to lowered expectation or decreased ART DIRECTOR ing sales situation and turned it into an event that performance—and no one wants that. DALE DODSON just might have boosted engagement. But if you plan well, you can avoid this situa- E-MAIL: [email protected] How? By taking a team that had not quite per- tion. That means offering a range of achievement ASSISTANT TO THE PUBLISHER formed up to expectations and getting them levels, first and foremost. But on top of that, think SHARON RYNNE together for the kind of trip they will never forget. about that team that went to Fargo. I would argue E-MAIL: [email protected] Do you think they didn’t spend some time on that that some smart manager at that company found a trip talking about the things they could have done way to turn a negative into a positive. You’d bet- CONTRIBUTING WRITERS better? Sharing knowledge and ideas? Becoming ter believe that sales team is never going to forget RICK DANDES a more cohesive team? its time in the frigid North Dakota winter. DIRECTOR OF WEB TECHNOLOGY All of this got me thinking about “what hap- Now, tell me, what do you do when your team pens if.” doesn’t quite meet expectations? Do you shrug it ROBERT G. BRASCHEL E-MAIL: [email protected] We talk a lot on these pages about the incredi- off and say, “Better luck next time”? Or, do you ble benefits that come from well-run incentive look for ways to turn the bad into something SALES OFFICE and reward programs. We write about the ways good? PAUL HENNESSY these programs actually 800 E. Northwest Highway pay for themselves. We Cheers! Suite 111 talk to experts about all Palatine, IL 60074 the things you need to PHONE: 847-705-6868 FAX: 847-705-6878 do to get it right and E-MAIL: [email protected] have a positive impact on engagement, reten- CIRCULATION MANAGER tion, performance and SUE ACKERMAN so on. Emily Tipping PHONE: 651-292-0629 But what if your team Editorial Director, E-MAIL: [email protected] doesn’t meet the goals [email protected] set by your program? Obviously, the first step you should take is

6 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM A new dimension of Sony Premium Incentive Products. Give your players another reason to win. Rewarding your employees with Sony Premium Incentive Products is the best way to keep them motivated. Create your own custom program and inspire productivity with today’s leading electronics, like CyberShot® Digital Cameras, dash™ Personal Internet Viewers, and even 3D-compatible BRAVIA® LCD TVs. Only Sony has the groundbreaking technology and longstanding reputation to drive bottom-line sales and make your team believe.

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© 2010 Sony Electronics Inc. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Features and specifi cations are subject to change without notice. Sony, make.believe, BRAVIA and their respective logos are trademarks of Sony. Screen images are simulated. Write 103 on reader inquiry fax card >> news & notes On the Go

A look at who’s moving up, who’s expanding programs, and who’s been a focus on promoting Rymax’s exclusive brand-name manufacturer lines and addi- recognized for outstanding achievements in the premium/incentive industry. tional partners.

IMA Announces 2011 Leadership Team Coleman Acquires Aero Products International Inc.

The Incentive Marketing Association announced new leadership for 2011, including The Coleman Company Inc. announced the acquisition of Aero Products newly elected President Barb Hendrickson of Design Incentives in Livonia, Mich. International Inc., a provider of premium, air-filled products marketed under brand Hendrickson joins five other new IMA officers for the 2011 term. They include names including Aerobed and Aero Sport. Executive Vice President Spencer Toomey, IP, of The Corporate Marketplace in A category leader for premium, air-filled mattresses, Aero Products has offered a Westport, Conn.; Vice President Dave Peer, CPIM, of Chicago-based Hinda wide variety of innovative products for nearly 20 years. Aero has strong, long-lasting customer relationships that complement Coleman’s distribution, enhancing its ability Incentives; Treasurer Mike Arvelo, CPIM of Paramax in Red Bank, N.J.; Secretary to reach more customers. Louise Anderson, CPIM, of Anderson Performance Improvement in Hastings, Minn.; Coleman President and CEO Sam Solomon called Aero Products “a natural fit.” He and Past President James Beyer of Helix Global Solutions in Arden, N.C. added, “We currently offer more than 30 models of indoor and outdoor air beds and IMA’s 2011 leaderhship also includes newly elected directors Heidi Chatfield of All accessories, so we understand this market and the wants and needs of the air bed con- Star Incentive Marketing in Fiskdale, Mass.; Steve Maselko, CPIM, CITE, of Marriott sumer. Through this acquisition, we will enter new distribution channels and expand Individual Incentives in Washington, D.C.; and Joe Zanone of Movado Group Inc., in our offering in the indoor and premium product segments.” Paramus, N.J. In addition, Mike Arvelo was re-elected to a second three-year term on the IMA board. Michelle Smith Receives IMA’s 2010 President’s Award They join directors Andrew Dodge of Cashstar in Portland, Maine; Greg Greunke Jr. of Greunke LLC in Alameda, Calif.; Brett Hatch of Maui Jim Sunglasses in Peoria, Michelle M. Smith, CPIM, CRP and vice president of business development at O.C. Ill.; Mark Jenkins of Pioneer Balloon Co. in Ashland, Ohio; Rich Killian, CPIM, of Tanner, was recently singled out by the Incentive Marketing Association (IMA) to RK Incentives in Orlando, Fla.; Richard Low of Hamilton Beach Brands Inc. in receive its 2010 President’s Award. A Certified Professional of Incentive Management Washington, N.C.; Mike Landry, IP, of Tumi in Longmeadow, Mass.; Charley Mann (CPIM) and Certified Recognition Professional (CRP), Smith was honored for her of Professional Marketing Associates, Mt. Pleasant, S.C.; Pete Mitchell of Samsonite work on behalf of the incentive industry, particularly as an advocate for education and in North Myrtle Beach, S.C.; Robert Purdy of Carlton Group Ltd. In Markham, outreach. Ontario; Mike Ryan of New York-based Madison Performance Group; and Betty Smith is an IMA President Emeritus and past president of the Forum for People Weinkle, CPIM, of Intelispend Prepaid Solutions in Miami. Performance Management and Measurement at Northwestern University. She is cur- rently a Board Director for Recognition Professionals International as well as the Rymax Welcomes New Director Incentive Federation. Introduced in 2003, the IMA President’s Award recognizes individuals who have Rymax Marketing Services Inc. announced the addition of Thomas Yuhas to its actively furthered IMA’s mission by creating a greater awareness of incentives; help- team as director of National Product Sales. Yuhas will work closely with the Product ing incentive suppliers prosper in a changing business environment through educa- Sales team to bring Rymax products and services to the incentive industry, including tion, training, research and marketing; and promoting high standards of professional- incentive houses, premium resellers and premium incentive program providers, with ism in the incentive field. IMA Announces 2011 Survey: eGift Cards Impact Strategic Plan Brand Loyalty The demands of our new economy and opportunities to succeed will be much greater for busi- The Incentive Marketing Association (IMA) has a threefold plan for 2011 as the group ness leaders who understand and foster a “people-led approach” in their organizations, according prepares for a new year amid a still-uncertain business environment, according to newly to a new study by the Forum for People Performance Management and Measurement. elected President Barbara Hendrickson. The study, “Leadership and the Performance of People in Organizations: Enriching Employees and “The jury is still out as to whether our industry will see a real recovery in 2011,” said Connecting People,” points out that today’s leaders must take into account the erosion of trust in man- Hendrickson, who is also president of Design Incentives in Livonia, Mich. “I will be working agement over the past few years and the changes in a workforce that is using technology to form per- closely with leaders of each Strategic Industry Group within the IMA to make sure we under- sonal connections both beyond—and within—the workplace. stand the needs of each group, and to ensure that we’re all pulling in the same direction “These enhanced connections should result in what the study’s researchers call a ‘constituent- to provide value to our members, help to create some opportunities and provide the tools based approach to leadership,’” said Michelle M. Smith (CPIM, CRP), Forum president. “This our members can use to maximize every opportunity.” approach successfully balances the needs of employees, consumers, shareholders and the com- Hendrickson said the IMA’s 2011 strategic plan is focused on three areas. They include munity at large and ensures that their needs are met in an authentic and transparent manner.” building IMA’s financial strength through membership growth, generating non-dues rev- Jennifer Rosenzweig, Forum director of research, notes that while leadership is one of the most enue, and wisely spending and investing funds on hand. In addition, the IMA plans to widely discussed and researched aspects of business, it has been characterized by a variety of def- increase its outreach and marketing efforts to its corporate audience. initions, frameworks, guidelines and managerial prescriptions. “That means reaching the corporate channel with our consistent message that ‘business “In this research, the Forum provides a review and reframing of leadership from a people-first improvement starts here’ through effectively structured incentive programs with defined perspective,” Rosenzweig said. “Along with meeting the needs of external constituents, today’s goals and proven returns,” Hendrickson added. leaders should concentrate on employee enrichment well beyond work-life balance into authentic The IMA will also focus on membership education and development, including updating concern for enhancing people’s lives.” its Certified Professional of Incentive Management (CPIM) and Incentive Professional (IP) Practicing a people-centered management and leadership style can pay off handsomely. certification programs. According to the study, companies practicing this approach have seen positive bottom-line results, “We also want to deliver relevant market research, educational products and other tools in which value emerges for every constituent. They refer to this as the Human Value Connection. for our membership to use to improve their businesses and that of their customers,” More about the Human Value Connection and recommendations for implementing Hendrickson said. people-centered leadership will be explored further in upcoming white papers from For more information, visit www.incentivemarketing.org. the Forum. To learn more, visit www.performanceforum.org.

8 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM WHEN PEOPLE WORK HARD...

THITH IS S THE ANTHTHE KS THEY SHOULD ETG .ETG

Find out how Canon can make your Corporate Gifts and Incentive programs work hard for you, contact Canon at 866-50-CANON or wwwor www.usa.canon.com/corporategifts.usa.canon.com/corporategifts

©2010 Canon U.S.A., Inc. Canon, ELPH, EOS, EOS Rebel, SELPHY, VIXIA and PowerShot are registered trademarks of Canon Inc. in the United States. IMAGEANYWGEANYWAREARE is a trademark of Canon. All rights reserved. All images are simulated. Write 104 on reader inquiry fax card >> news & notes Companies Worldwide See Talent as Biggest Obstacle to Growth

As companies worldwide begin to position themselves for future growth in the face of an uncertain economic recovery, a new survey by global professional services com- pany Towers Watson finds that concerns over their ability to attract and retain key tal- ent, or to plan for an orderly replacement of talent, could thwart those efforts. The sur- vey also found significant gaps in employers’ capabilities to address talent manage- ment and succession planning issues. The Towers Watson Strategies for Growth study, a survey of more than 700 compa- nies globally, revealed that talent—finding it and keeping it—is the biggest potential workforce obstacle to achieving growth. Specifically, more than half of the respon- dents worldwide (51 percent) cited the loss of talent in key skill areas as a workforce challenge that could hinder growth. Slightly fewer (49 percent) cited the lack of suc- cession planning as a top challenge, while 38 percent noted concerns about attracting necessary talent. Regionally, the survey revealed some divergence, which tended to track with the differing economic climate in various parts of the world. North American companies are less concerned about loss of key talent than their counterparts in other regions, but are more concerned about levels of disengagement among employees. In Asia Pacific, disengagement is not a major issue, but the inability to pay workers competitively is, reflecting the region’s fairly young and mobile workers, who are willing to change jobs frequently to advance their careers and raise their paychecks. Respondents in Europe are more worried about the talent drain’s impact on management succession planning. tions will not only find themselves at a significant disadvantage over time, but may “Companies clearly see talent as an integral part of growing their businesses when lose critical momentum in trying to catch up to more advanced peers once recovery is the economic recovery firmly takes hold,” said Ravin Jesuthasan, global head of talent in full swing,” said Nigel Bateman, a director of international consulting at Towers management consulting at Towers Watson. “And despite respondents’ cautious opti- Watson. “One positive finding that may help offset this risk is respondents’ focus on mism about growth in the coming year, they recognize that an inability to attract new improving performance management, which was cited as the number one area for talent or hold on to key individuals could prove to be the difference between growing greater emphasis this year across all regions.” and remaining stagnant. What’s most striking—and worrisome—in light of this con- “This tells us that respondents recognize the relationship between a high-perfor- cern is that many respondents aren’t truly prepared to address talent issues.” mance culture and growth, and the role that effective performance management plays For example, only a quarter or slightly more of the respondents indicated they have in helping shape such a culture. With talent worries looming large, there’s little doubt an appropriate capability in place for acquiring talent (29 percent) or retaining talent that getting the pay/performance equation right can deliver benefits across the (25 percent). Even fewer (21 percent) have a sufficient capability for succession board—giving companies the ability to keep top talent, have a sufficient pool to draw planning. on for succession planning and have an easier time attracting the necessary talent,” “The global lack of a sufficient governance capability in talent management and Jesuthasan concluded. succession planning is a real concern, particularly since the least prepared organiza- For more information, visit www.towerswatson.com. Think Tank Focuses on People-Centered Leadership

After a daylong examination of the newly emerging concepts of “employee enrichment” and “human value connec- tion,” business leaders and experts from the Forum for People Performance Management and Measurement concluded that more work will be needed to successfully implement these new workplace concepts that can often double perform- ance results. In an Executive Briefing chronicling the session held in Chicago, the Forum highlights that current “Pornographic Management” techniques can undermine an employee’s sense of personal value and impact that employee’s ability to perform to the full extent of his or her capability and prevent the highest levels of performance. “These promising motivational concepts will require a tremendous shift in the traditional management paradigm,” according to Forum President-elect Keith Fenhaus, CEO of Hallmark Business Connections. “The people-centered approach asks leaders to step outside their personal comfort zone in order to create an environment that centers an organization’s power squarely within its core talent pool rather than primarily in its administration.” Forum Director of Research Jennifer Rosenzweig explained that one of the biggest challenges may lie in the inherent difficulty of totally embracing a people-first strategy. “The consensus of the 2010 Think Tank participants seems to be that we need to do more exploration of the ways that we can help organizations buy in to the concept of helping their employees to grow as a definitive way to improve the performance of the overall organization,” Rosenzweig said. According to the Forum, practicing a people-centered management and leadership style can have positive bottom- line results, in which real value emerges for every constituent. As a result of the discussions and conclusions, the Forum plans to explore more ideas for implementing people-cen- tered leadership in upcoming research and white papers. For more information, visit www.performanceforum.org.

10 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM Legislation Campaign Advocates Wellness Incentives

Representatives of the Incentive Legislation Campaign (ILC) recently traveled to Capitol assessed the meetings, saying, “We were encouraged by the willingness of the Senators’ Hill to meet with staff advisers of targeted members of Congress as part of the ILC effort to advisers to explore the feasibility of our proposal and to learn more about the power of incen- institutionalize the power of wellness incentives as a way to encourage a healthy American tives to promote desirable changes in behavior.” workforce. He continued, “We also appreciated their candor in letting us know the viability of our pro- Seeking to amend the Internal Revenue Code by including employer deductions and posal will depend on the priorities of the incoming Congress and our ability to provide per- employee tax exemptions for wellness incentives, ILC representatives met with the Senate suasive information regarding the penetration of safety and wellness programs along with Finance Committee senior benefits counsel for Senator Baucus, tax advisers for Senators ways to handle the costs of our proposal.” Hatch and Enzi, health care policy adviser for Senator Harkin and a legislative aide for Also on hand for the Capitol Hill meetings were ILC members Heidi Chatfield, vice president Senator Cornyn. of marketing and operations at All Star Incentive Marketing; Kevin Cronin, executive vice Incentive Federation Executive Director George Delta, who worked with ILC Legislative president of Client Strategy, Solutions and Implementations at Rideau Recognition Solutions; Counsel Jim Miller to organize the meetings, explained that upcoming tax reform and health Brian Galonek, president of All Star Incentive Marketing; Beth Rusert, vice president of care issues on the horizon for the 112th Congress that begins in January could provide a Communications and Public Affairs at Maritz; Steve Slagle, president and CEO of Promotional workable venue to promote the use of incentives as a means to reduce health care costs. Products Association International; and Michelle M. Smith, vice president of Business “One of the best ways to encourage more widespread use of wellness incentives is to make Development at O.C. Tanner. them non-taxable to employees and deductible to employers, so the ILC is educating members Delta explained that ILC members will continue to gather data and case studies that can of Congress about how this could be done by simply adding a new section to the tax code that be brought to Capitol Hill early next year once the 112th Congress has established its legisla- is similar to a measure already used to encourage successful safety incentives,” Delta said. tive calendar and agenda. ILC Legislative Committee Chair Greg Canose, president of Award Marketing Services LLC, For more information, visit www.incentivefederation.org.

Write 105 on reader inquiry fax card >> guest column By Jackie Bardenwerper

Jackie Bardenwerper is the director of marketing for Lapine Inc., the only award-winning merchandise agency offering premium merchandise, distribu- tion and fulfillment services, and comprehensive marketing support to the pre- mium industry. For more information, visit www.lapineinc.com/premium. Consumer Electronics Roundup: What to Look for in 2011

n 2010, holiday cheer came to many consumers in Along with camcorders, portable GPS navigation One company that embraced this trend early is the form of electronics. Tablet PCs, e-readers, units continued to dominate the market as new tech- Parrot, a global leader in wireless devices for mobile I home computers and smart phones topped the list nology encouraged millions of Americans to throw out phones, home entertainment and automotive multime- for the season’s hottest gifts as Americans invested in their roadmaps and connect to their directions via dia connectivity. Parrot’s Zikmu by Philippe Starck innovative and practical items for work, school and play. satellite. According to wireless speakers feature a dedicated iPod/iPhone With a recent retail survey from mall media special- Garmin, much of this docking station in addition to Wi-Fi and Bluetooth ist EYE electronics reporting that more than 82 percent growth was fueled by the technologies. Consumers can stream music wirelessly of consumers cannot live without their electronics, it is addition of new features from their iPhone or other smart phone, MP3 player, not surprising that consumer electronics continues to available on models like the Mac or PC via Bluetooth or Wi-Fi, allowing users to remain a bright spot in a still-sluggish economy. Garmin nuvi 3790LMT, simplify their audio systems while accessing music But what hot products will we be coveting in 2011? which includes voice-acti- from many diverse sources. And what does this mean for the premium incentive vated navigation, 3-D buildings and terrain, and life- Also following this streamlining trend is Garmin, industry? We’ve surveyed some of the biggest names time map and traffic updates that alert drivers of which continues to update its line of portable golf GPS in consumer electronics to find out where we’ve been upcoming delays. units with new features that increase functionality and and where we’re headed. According to Garmin, in 2010 shoppers focused decrease setup time. For example, Garmin’s Approach more on technology than price point, often purchasing S1 is the first and only watch developed for golf pre- The 2010 Takeaway: Connection more expensive units that included updates on traffic loaded with golf courses. It comes loaded with more Consumer electronics in 2010 were all about con- conditions, the latest maps and even hands-free mobile than 14,000 U.S. and Canadian golf courses, eliminat- nection. New ways to connect with your personal net- phone calling. Garmin expects this trend to continue ing the need to purchase online subscriptions to course work. New ways to access content. throughout 2011 as enhanced junction views, voice maps or to download courses from a computer. Nowhere was this shift more evident than in the e- recognition software and lifetime traffic and map And for the outdoorsman in search of a streamlined reader category. A few years back in 2008, e-books updates are introduced on more affordable Garmin weather AM/FM radio, the newly released American comprised less than 1 percent of the entire publishing models such as the Garmin nuvi 2360LMT. Red Cross Axis by Etón provides users with a self- industry. Today, they make up more than 6 percent. powered hand crank radio This trend was fueled not only by the introduction of 2011: Streamline Your Technology that includes a NOAA new computer tablets, but by thinner, more lightweight If 2010 was the year of connectivity, then 2011 may weatherband, optional bat- readers that connect consumers to ever-growing be the year for streamlining all those connections. In tery and AC power sources, libraries of books, magazines and newspapers through 2011, look for products that not only keep consumers a USB terminal for mobile Wi-Fi and 3G networks. in touch with content, people and the office, but also phone chargers and a built- One example includes the Reader offer multiple functions that make life a little simpler. in LED light source. Daily Edition by Sony, which One emerging category focused on streamlining includes Wi-Fi and 3G access, can includes multi-device charging stations that allow The Power of Consumer Electronics as Incentives hold up to 50,000 books, and weighs users to charge their portable devices simultaneously Today’s consumer electronics no longer deliver just only 9.6 ounces, making it an easy-to- from one docking station—saving consumers from tan- personal entertainment. They’re about connecting— transport, green alternative for con- gled wires and hunts for free power outlets. The new with friends, family, the office and every type of con- necting with published material. As e- I4 from IDAPT lets users charge up to four devices at tent imaginable, from television programs to YouTube readers continue to evolve and add the same time—from smart phones and MP3 players to videos, Facebook updates to Google maps. And they’re features, we expect this trend to continue in 2011 and digital cameras and portable GPS units—using a set of about the freedom to maintain these connections no beyond. six included interchangeable tips. matter where you live, work or travel. As people looked to share experiences and connect And for those looking to streamline their energy use, Which is why consumer electronics remain one of with friends, family and colleagues, portable cam- IDAPT’s recently released Eco model lets users reduce the most sought-after categories in premium incentive corders, such as those developed by Flip Video, also their carbon footprint while charging up to two products. Few other categories elicit the same enthusi- emerged as industry leaders. As small as a smart devices. With the Eco, devices charge only when they asm, or high usage levels by recipients, as a must-have phone, these video cameras let users record and share need to, thanks to an auto shut-off feature and zero electronic device. And the most successful incentive videos instantly through computer-ready MP4 files that watt draw-in when in standby mode. products are always those an employee uses regularly, are uploaded using a built-in USB. Flip Video’s pre- Another trend helping consumers consolidate providing a constant reminder of that great sale, suc- loaded FlipShare software also makes it easy to organ- devices includes the introduction of wireless technolo- cessful company initiative or milestone service award. ize, edit and share videos by sending either attach- gy, such as Wi-Fi and Bluetooth. Already prevalent in As new technology brings consumer electronics ment-free e-mail or posting videos to Facebook, a number of consumer electronic devices, wireless even further into our daily lives, consumer electronics Twitter or YouTube. With models such as the Flip communication is increasingly becoming the glue that will continue to excite many employees, making them Video UltraHD and MinoHD flying off the shelves in holds our electronics together—letting us connect to the perfect selection for employers looking to reward and 2010, we see this category expanding in 2011, as cam- devices and transfer data between them without ever incentivize employees and customers with practical and eras become more user- and computer-friendly. attaching a wire. innovative gifts that also help streamline their lives.

12 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM >> guest column By Pete Mitchell & Barb Hendrickson Incentives: Cost or Investment? Editor’s Note: We asked incentive industry leaders, Barb Hendrickson and Pete Mitchell, to discuss a critical topic in the incentive industry. They chose the debate over whether incentives represent a cost or an investment. What do you think? Write to [email protected] to weigh in with your thoughts on this issue, or others raised on these pages.

Pete Mitchell is a 20-year veteran of the incentive and promotional products Barb Hendrickson, CPIM, is President of the Incentive Marketing Association and markets, and is currently Director of B-to-B Sales for Samsonite Corporation. He President of Livonia, Mich.-based Design Incentives Inc. Barb has been a leader has served as Vice President, Corporate Markets for both Swiss Army Brands and in the incentive industry for more than 28 years and is a contributor to The Forum Tumi. He is Vice President of the Incentive Manufacturers & Representatives for People Performance Management and Measurement, an active member of the Alliance and is a frequent presenter at PPAI (Promotional Products Association) Incentive Manufacturers & Representatives Alliance, the National Association of and IMA seminars. Women Business Owners and the National Association of Professional & Executive Women.

“Beware of little expenses. A small leak will sink a great ship.” No wonder some companies see incentives as a cost rather than an investment: We’ve —Benjamin Franklin been talking to each other within the incentive marketing community for years, but those outside of our industry have an entirely different orientation when they hear the word I’m wondering if old Ben’s ghost was in the boardrooms of Corporate America after the “incentives.” Great Recession hit, because companies have been plugging those “leaks” for the past two To the automotive community, it means cash on the hood of the vehicle—a discount years. Every little cost that could be eliminated was eliminated. And, rewarding and recog- offered to the consumer. To the insurance community, it means a cash bonus that is part of nizing employees and customers was part of it. a sales compensation package. To a government agency or a business relating it to tax First, it was just, “We’ll suspend the program for a while—just until things turn around.” incentives, it means a break on your taxes, or again, a discount that means less revenue And when things didn’t turn around right away, they said, “Well, perhaps we don’t need to coming in. reinstate it right away.” That morphed into, “Perhaps we will reinstate it at a lower level,” Likewise, when someone in special markets, the corporate channel or incentive sales or, the Nightmare Scenario, “Maybe we don’t need to reinstate it at all.” hears that an industry is spending $x million on “incentives,” they wonder why they aren’t It’s insidious, really. A legitimate need to cut expenses results in a change in the way getting their share of that pie. The reason is that those millions spent on “incentives” have companies view their key achievers. And, the challenge will continue, as budgets are con- absolutely nothing to do with merchandise, gift cards, incentive travel or performance tinually reviewed and revised to squeeze out any “fat” that would affect the bottom line. improvement. What happens to expenses once they’re cut? Are they reinstated? Ever? Our challenge becomes to educate executives, and to be conscious of the language we Everyone believes in the need for reward and recognition—as humans, we crave it. And, use when talking to each market segment. Using the word “incentive” may immediately even the most draconian budget includes something for acknowledging excellence. But it’s trigger the “uh-oh, here comes something that will cost me money” response. the level of the expense that presents the biggest challenge. If we go from 100 percent to The Incentive Marketing Association’s messaging to the business community will help 50 percent, what’s the probability that we’ll ever return to that old figure? broaden the meaning of “incentives” and reinforce the connection between incentives and We’re all doing it. We’re traveling a little less, spending a little less on hotels or dinners business improvement. out with clients. And “a little less” becomes “even more less” as time goes on. Do I expect The beauty of a properly structured program (as we define it) is that it can be based to spend more this year on travel? No. It’s easy to see how a cut here and a snip there ends entirely on incremental sales or performance. That means the program literally pays for up reducing the overall spend of a given client. Add them together, and you get a challeng- itself as there is no payout until the goals have been reached. Logically, since little money is being spent until the sales increases are realized (or the performance has improved, the ing environment. accident incidents have been reduced, or the employees have met health objectives that As companies realize that they can survive—even thrive—with lowered levels of spend have reduced insurance costs), it is not a cost, but an investment of just a small share of the on employee or customer recognition, they will be loath to spend more. Our market has strug- profits realized from the program. What other business strategies can offer so much reward gled to create metrics that speak to the “investment” characteristics of incentive and reward for so little risk? Not advertising. Not marketing campaigns. Not direct mail. programs. It’s a “soft” cost that compares poorly with other, more measurable spending For a couple of years, experts have been predicting that once the job market opens up options. again, key people are going to be looking for pastures that offer greater opportunity, and For those who do value rewards, it’s a race to the bottom to spend less. The $100 item where they feel appreciated. becomes the $90 item, and many brands get forced out of the discussion. Non-branded That said, there are still managers and corporate executives who feel that employees are products have less trophy value and make less of an impact on the participant. And the “just lucky to have a job.” In this economy, certainly anyone with a job and benefits is for- whole thing goes down the drain. tunate—but that doesn’t mean those people are doing any more than the minimum require- There are options, of course, and ways for us to ensure we get proper consideration. ment, that they’re fulfilled, that they believe they’re making a contribution or feel appreci- First, brands connote trust and value. We must make sure our clients are aware of the value ated and valued as a member of the team. of branded products as rewards and incentives. Many executives believe that the period in which they are reducing staff and expenses is Second, everyone’s keeping score about whether their company is treating them well. not the time to reward and recognize the employees who remain. On the contrary, it’s When the job market improves (and it will improve, despite the naysayers), employees will especially the time to recognize those key people who are going above and beyond to keep leave those companies that don’t value their contributions. The brain drain (already consid- the company moving with fewer people and resources. erable with the loss of the baby boomers and others being outsourced) will make a consid- The ideal is to have all of the right people in the right seats. The reality in Corporate erable impact on the enterprise. Recognition is one tool to mitigate that effect. America is that sometimes you’re lucky enough to have the right people, but policies and Finally, we have to be loud and proud, supporting the notion that our clients must “walk procedures force you to keep them in the wrong seats (and there are always some who are the talk” with regard to people and how they truly are the most valuable company asset. on the wrong bus!). The danger is to treat all employees the same. When low-performing Everyone says it, but an ongoing program of reward and recognition is the best way to or disengaged employees are treated in the same manner as high-performing, engaged prove that the company sees its employees (or customers, another sometimes-forgotten employees, you’re sending a message that either you don’t notice who’s doing the valuable stakeholder) as a vital component for future success. work, or it’s not important to you. The hill is steep. The urge to cut “non-essential” expenditures is strong, and the willing- Studies have repeatedly shown that it’s more expensive to hire and train a new employee ness to reinstate them will be weak. We face an uphill climb to make sure companies than to retain a competent employee. What better use of resources than a structured pro- understand what happens when your key constituencies aren’t being cared for. We can, and gram, designed by professionals to retain the company’s most valuable asset? must, plug the leak. The alternative is poor for those of us who can’t swim. IMA members can help companies ensure a return on what can only be considered an investment in their future success. That’s why business improvement starts here.

WWW.PIPMAG.COM PREMIUM INCENTIVE PRODUCTS JANUARY/FEBRUARY 2011 R 13 High-Value, High-Impact Incentives & Rewards

At the height of the recession as consumers of luxury goods aimed to be less conspicuous, it was not unusu- al to find someone walking down 5th Avenue in New York City with a luxurious item encased in a brown paper bag. While the world reeled in the wake of an economic downturn of near-disastrous proportions, those with the funds to spend on high-value brands and coveted items were less likely to show- case that spending. Flashy diamond-encrusted watches gave way to traditional, classic styles. Bling was out. Saving was in. But while luxury goods worldwide took a severe hit in 2009, ending a year of sales declines totaling 8 percent, according to Bain & Company, a New York-based global consulting firm, the market was expected to show a recovery in 2010, rising 10 percent and nearly eclipsing its historical peak, which came in 2007. This market rebound was linked by Bain to rapid increases that came in the second and third quarter, as well as consumers returning to brands’ direct-owned stores, growth in China and a rebound of sales in the United States. The market was particularly strong for sales of leather, shoes and accessories, Bain reported. The group expects sales to continue to climb in 2011. For professionals working on programs to reward and motivate their employees, partners and customers, this means that attention must be given to the types of items included as part of those reward and award mixes. If you don’t offer people the chance to earn a little luxury, if you don’t include aspirational items that most people would never purchase with the dollars in their own pockets, your program will not reach its full potential. When it comes to incentives, rewards, recognition, service awards, business gifts— you name it—well-known, brand-name luxury items are your ticket to success.

14 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM Give the Finest

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Write 106 on reader inquiry fax card Get the Goods Defining Luxury When asked to define luxury—both generally and in the context of rewards and Every category of merchandise that’s represented in the incentive and rewards market can offer a little luxury to your program participants. Here, we break down some of the incentives—most experts offer a variation of the same answer: It depends. offerings to give you an idea of what can work at various price points and in a wide “Luxury means different things to different people,” said M.H. Bartzen, corporate range of product categories. sales manager for New York-based Godiva Chocolatier Inc. “No matter what the price is, people like luxury to be something that they wouldn’t buy every day, but something they love and treasure, where they can enjoy the experience of what it is.” The Feel of Luxury The definition is elusive, but it comes down to several key points. According to the Luxury Institute, a New York-based research firm that studies the lifestyle and pur- Modern Style chasing habits of America’s upper crust, there are four elements that define a luxury Bravo from Tumi is a modern collection of day product or service: and travel bags that define bold, contempo- rary design and cutting-edge performance. • The collection is targeted to fast-paced indi- Luxury products and services are of consistent and superior quality. viduals and design-conscious cus- • Luxury products and services offer a quality of uniqueness and exclusivity. tomers who enjoy a dress-casual • Luxury products and services are valued by people who are admired and respected. lifestyle that doesn’t compromise • Luxury products and services make owners and prospective owners feel special. their professionalism. Bravo bags are versatile—they allow their owners the freedom to “What does luxury mean?” asked Joe Zanone, senior vice president of Movado choose how to use them—as Group Inc. “To me, it’s something I wouldn’t normally budget or buy for myself, business cases one day or a gear something above and beyond, something that I would reward myself with. It could be bag the next. Alpha Bravo’s use of as simple as a box of Godiva chocolates.” soft, body-conforming ballistic nylon and unconstructed styling creates a relaxed, casual feel. Luxury in Context Write 410 on reader inquiry fax card. In the context of incentives and rewards, luxury products and services become even more powerful. “In incentive and award programs there should always be a luxury aspect to it,” said Mike Landry, director of special markets for Tumi Corp. “Luxury is extremely aspi- Time for Something Unique The Movado Fiero Gents is in a class by itself, rational, and in an incentive and reward program, what we’re trying to do is incent featuring a polished Tonneau shaped hard people to modify their behavior in some way. How better to do that than to put a piece metal case and black Tonneau shaped dial of merchandise out there that people work harder for—something they probably with cabochon. Additional features include wouldn’t buy for themselves, but would work harder to get?” all polished stainless-steel triple-blade Dana LaSalvia, director of marketing for Rymax Marketing Services Inc., agreed, buckle, sapphire crystal with antireflection treatment, water resistance to 99 feet and adding that the power of luxury brands to motivate should never be overlooked, Swiss quartz movement. because this is what consumers demand. “People are brand-savvy and understand the Write 411 on reader inquiry fax card. difference between quantity and quality,” she said. “The way we build our incentive model is based on the fact that participants aspire to use their points for things that might be out of their normal reach or that they wouldn’t spend their own cash on.” The reason luxury is such an important facet of incentives and rewards, Bartzen explained, is because of the experience of being rewarded or recognized. More than the dollar amount or the item itself, the experience of receiving that recognition is Top of the Line what drives the recipient—and other employees, partners or customers who are privy Available through Rymax, Michael Kors updates the Jet Set to the process—on to new heights of motivation and performance. items collction with the very functional Top Zip Tote. This item “That experience has to be memorable, and it needs to be relevant to the is incredibly chic, sophisticated and fun. Can be carried to work or play. Featured in a Luxe accomplishment,” Bartzen said. “It needs to have a sense of an experience. When it embossed python leather. Includes recessed zipper does, it becomes a more powerful memory that is then tied to the achievement, or tied closure for added security, two open side pockets to the thanks.” for easy access, and shiny 18-karat gold hardware. While this explains the power of luxury goods in motivating your audience to do Interior utility pockets include four open and one the things you’d like them to do, it doesn’t explain why you need to motivate them at zip, a trigger snap key holder, lining in MK logo linen and bottom feet. all. But the fact of the matter is, if you don’t reward and motivate your workforce, Write 412 on reader inquiry fax card. you’re not performing at your highest potential. LaSalvia pointed out that studies from the Incentive Federation have shown that individual employee incentives can improve performance by as much as 27 percent, and that team incentives can lead to as much as a 45 percent improvement in performance. “Happy employees equal happy customers,” she said. “If you want to build quality Time Keepers employees and quality customers, you want to reward them with quality incentives. The Citizen Eco-Drive Men’s Promaster SST Whether it’s the financial industry, the gaming industry, employee recognition, cus- features stainless steel with black ion tomer loyalty—you want your participants to feel valued, and how they plating, black dial, world time in 43 countries, red LED back light, 99 minute feel that is through the rewards reflected in your programs. You want to create a countdown timer, alarm and water resistance program where employees and customers feel valued and the rewards reflect that to 200 meters. same emotion or feeling.” Write 413 on reader inquiry fax card.

16 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM The Look of Luxury Stealth Wealth and Inconspicuous Consumption When the economy went south, though, many programs were cut back severely— Infinite Possibilities and some were cut completely. This stepped arrow from Steuben is a paradox of In light of the continuing drag on employment numbers and the continuing fiscal sorts. Seemingly straightforward at first glance, optical illusions abound when it is viewed at close prudence of companies, is there still a place for luxury goods as a part of a well-run range. Imagine the infinite possibilities of recogniz- incentive and reward program? ing great performance and the person on the move. “In terms of redemption,” Zanone said, luxury goods “did suffer, for the simple fact Write 422 on reader inquiry fax card. that America was slapped in the face with a complete stop to consumerism and achiev- ing and obtaining things that are normally out of reach.” Seeing Red Thus, the brown paper bags on Fifth Avenue. Spring is in the air at Waterford with its “This concept of ‘stealth wealth’ has grown out of this,” Landry explained. “This is new Fluerology collection, a unique design buying or investing in something luxurious—an investment piece—but being a little concept featuring chic crystal vases, bright- more conscious of what it looks like to other people. So, instead of the L-V-L-V-L-V ly colored cased crystal vases and lifelike glass flowers. A useful luxury to give or Louis Vuitton pattern, it might be a simple black ballistic bag.” receive for sure. Shown is the Meg 12-inch On top of this, many program participants turned their use of points in a new direc- Ruby Cased Rose Bowl with a suggested tion as the recession hit. For those who could redeem points for merchandise, products retail of $1,100. for the home and family took precedence. Write 423 on reader inquiry fax card. “People wanted to be more at home. The categories like camping and basic things Crystal Heritage became the luxury those people would choose because they could utilize them in a bad Alana, a heritage pattern from Waterford, is economy to keep the family at home but make it fun,” Zanone said. revived with sumptuously oversized decorative He added that while redemptions may have slowed in the midst of the recession, pieces that are hand cut to reveal the glamorous that doesn’t mean that the perception of luxurious items has changed that much. diamond relief made famous in the 1950s. A lux- ury to give or receive for sure. Alana Clear 11- “If you look back historically through good and bad economies, the Nieman Marcus inch tall Champagne Cooler and Alana Clear 13- Wish Book, the Christmas catalog, has always had the million-dollar gift,” he said. inch Centerpiece Coupe both retail at $850. “And within the workplace, regardless of who they work for as part of their incentive, Write 424 on reader inquiry fax card. it’s nice to be able to achieve, and earning enough points to get the luxurious item takes a lot of achievement.” Again, it’s all about individual perception. “Everyone has a different threshold, and everyone perceives luxury differently,” LaSalvia said. “You have the upper-tier Cartiers A Classy Addition of the world, and at a different level, we’ve tried to introduce affordable luxury into our The Baccarat Harmonie Square Decanter, available branding and messaging. It’s maybe more of a middle tier, but still with superior quality, through Rymax, is a stunning crystal decanter from longevity and uniqueness—but more of an affordable price point. While the downturn the Harmonie Collection. It makes the perfect addition has affected every industry, today’s consumers are still really brand-savvy, and although to any bar. It is made from full-lead crystal and we’ve seen some changes in redemption history, people are still banking their points and stands 9 5/8 inches high. using their incentive programs to get a reward that’s built to last.” Write 425 on reader inquiry fax card.

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Write 107 on reader inquiry fax card The Sights and Ultimately, Zanone said, luxury will retain its place in the spotlight in incentive Sounds of Luxury and reward programs. “The only thing that changed during the downturn is price point,” he said. “As corporations were trying to manage incentive programs and rewards and awards, they may have cut their budgets back. Some cut them back to zero. But the growth of higher-priced goods or luxury-type goods has been hugely steady over the past year, and in the future, yes, luxury items will definitely contin- ue to be part of the mix.” This is because a good program is built upon levels of achievement. While those who perform well get rewarded at one level, the star team members who outperform expec- tations on a daily basis need a little luxury to motivate them to reach even further. “It only makes sense in a good incentive program to have various levels of achieve- ment,” Zanone explained. “You have to look out for the people who are going to go right to the top because they want to achieve the big luxury item.” Revolutionary Available through TMS, you’ll find this LaserVue® Laser TV. Mitsubishi revolutionizes The achievement of these cream-of-the-crop performers has positive side effects as large-screen television with groundbreaking laser technology, setting the new stan- well. “It makes everybody else want to be better and achieve at that level,” Zanone dard by delivering unimaginable, cinema-like color at a fraction of the operating said. “There’s that camaraderie that makes everyone want to do a better job.” power consumption of similarly sized flat-panel TVs. LaserVue® harnesses the power of the world’s purest light source to deliver up to two times the color of many of Get It Right today’s flat-panel TVs. Laser beams provide an extensive range of rich, complex col- ors, truly distinct clarity and immersive depth of field. While luxury items can be a powerful tool in almost any incentive or reward pro- gram, there are a few things to keep in mind when making your own plans. Write 417 on reader inquiry fax card. First of all, you’re likely to see better results from longer-term programs over short-term and one-off programs. LaSalvia emphasized this point, adding, “People have to have the opportunity to bank points and aspire to achieve a higher level. A program with a shorter lifecycle might not afford the opportunity to earn a higher- priced good. Immerse Yourself “Sweepstakes, sales incentive contests—any program where you want them to Also available through TMS, this 3-D-compatible HTiB from Yamaha delivers reach a higher threshold—you want to give them something that’s going to motivate clear and dynamic sound from an HD audio-capable AV receiver with 1080p HDMI them to go that extra mile and move the middle,” LaSalvia added. repeater (4 in/1 out), a low and slim front speaker, compact surround speakers When it comes to business gifts, it’s important to ensure your gift fits the context of and an Advanced YST subwoofer. your relationship with the recipient. “In gifting, luxury has to feel appropriate,” Write 418 on reader inquiry fax card. Bartzen said. “You don’t want to feel overindulged. It has to be a comfortable item that they feel they deserve and yet is something that makes them say to their friends Picture This Capture your perfect moments with the world’s first and peers, ‘Wow. I earned this, or was given this as a thank you.’” Translucent Mirror Technology ™ DSLR from Sony, She added that the thought, intent and timing of the gift are extremely important. enabling simultaneous focusing and capture. Much more important than just spending more. Continuous shooting is an amazing 10 frames per “Luxury is about the gesture as much as the gift,” she said. But at the same time, second, complete with continuous auto focus. Auto “It still needs to be special, a product that people know and trust.” focus is also visibly faster in Live View and HD Movie modes. The appropriateness of your gift or incentive is heavily dependent on the audience for your program, and Zanone emphasized the importance of understanding your Write 419 on reader inquiry fax card. audience well. “You have to know your audience,” he said. “If I put a $25,000 Ebel men’s watch in a program at Mary Kay, what kind of motivation would that be? If, on the other hand, I put a ladies crested diamond watch in, it would make more sense.” See the Evolution The flagship of the EOS Rebel line, Canon Landry agreed, saying the assortment of items in your program must be tailored to EOS Rebel T2i brings professional EOS features the recipients. into an easy-to-use, lightweight digital SLR “A UPS driver safety program is really a key part of the UPS strategy,” he said. that’s a joy to use. Featuring a class-leading “They need their drivers to be safe and not get in accidents. Even a minor fender 18-megapixel CMOS Image Sensor and bender can throw a monkey wrench into their operations. I’m not sure Tumi increased light sensitivity for low-light photogra- phy, the EOS Rebel T2i also has an advanced HD Movie mode for belongs in that program. It might be a nice grill or a DVD player or something gorgeous Full HD movies. Able to capture up to 3.7 frames per second, it’s ready to go along those lines. On the other hand, we just completed a big program with phar- the minute it’s picked up. Advanced Live View, a new wide-area screen, plus features maceutical reps all over the country calling on physicians, and it was a perfect like Canon’s brilliant Auto Lighting Optimizer and Highlight Tone features ensure bril- match for that program.” liant photos and movies, easily. While you’re getting to know your audience, you should also know this: Everyone Write 420 on reader inquiry fax card. can be motivated by brand-name luxury goods. Everyone. “The target audience for luxury goods would be anyone within Tune In the workplace, because anybody can step up given the parameters With the Bose® Wave® music system you can of a program and achieve,” Zanone said. “Everybody from the enjoy room-filling sound from an elegant, easy- to-use system that fits almost anywhere. person sweeping the floors to the person closing the multimillion Proprietary waveguide technology allows the deals—all of them need to be motivated, all of them need to be system to deliver rich, lifelike sound, Includes digital incentivized, and all of them need the éclat of achievement.” PIP clock and alarm, CD/MP3 player, FM/AM digital tuner, headphone jack and remote. Write 421 on reader inquiry fax card.

18 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM The Taste of Luxury

The Right Gift for Everyone Favored Flavor Celebrate those who contribute Rise through the ranks with the Gaggia® to your business year-round with Accademia, a smartly appointed super auto- classic Belgian chocolates. Godiva matic espresso machine available through gift baskets are filled to the brim Rymax Marketing Services Inc., whose charm- with assorted gift boxes and bags ing good looks and responsive performance are for all to share. Everyone will recog- sure to earn it a place at the top of its class. nize the iconic Godiva Gold Ballotin, With a contemporary stainless-steel front and will be delighted when they try panel, durable metal frame and a bright dis- new Godiva Gems. Whether you are play, the Accademia embodies refined design looking to motivate, appreciate or aesthetics. Anchored by one-touch, program- recognize someone special, a gift mable push-button controls for espresso, hot of Godiva will leave a lasting water and milk outputs, the Accademia dis- impression. penses perfect beverages on demand. Write 414 on reader inquiry fax card. Write 416 on reader inquiry fax card.

Impress the Best Give the gift that’s sure to impress with The Ideal Business Gift assort- ment from Omaha Steaks. This gourmet collection Find Your Luxury includes legendary Filet Mignons and Top Sirloins, juicy Omaha Steaks When you’re ready to add luxurious items to your program—at any price Burgers, Boneless point—talk with the following suppliers, featured in this story: Chicken Breasts, deli- cious Stuffed Baked Bose 888-862-9283 www.bose.com/incentives Potatoes and decadent Write 200 on reader inquiry fax card Chocolate Lover’s Cake. It’s a gift that is sure to Canon 866-50-CANON www.usa.canon.com/corporategifts be remembered through- Write 201 on reader inquiry fax card out the year. Write 415 on reader Citizen Watch Co. 201-438-8150 Ext. 8234 inquiry fax card. www.citizenwatch.com Write 202 on reader inquiry fax card

Godiva 877-267-7847 www.godiva.com/business Write 203 on reader inquiry fax card

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Omaha Steaks 800-228-2480 www.osincentives.com Write 205 on reader inquiry fax card

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Sony 800-833-6302 www.sony.com/motivation Write 207 on reader inquiry fax card

Steuben 866-603-5352 www.steuben.com Write 208 on reader inquiry fax card

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©2011 Steuben Glass LLC Steuben® is a Registered Trademark of Steuben Glass LLC WWW.PIPMAG.COM PREMIUM INCENTIVE PRODUCTS JANUARY/FEBRUARY 2011 R 19 Write 108 on reader inquiry fax card Keeping It Fresh

Creating Effective Long-Term Programs

Incentive programs have proven to motivate employees enough to BY DEBORAH L. VENCE get about items in the near term and lose focus.” help improve their individual performance and increase company Stotz also advised that companies keep in mind when designing an productivity. They give workers the feeling of being valued and a sense of connection. incentive program, that you need to consider the human response, and the possibility All the same, an incentive program can work for or against you, depending on its that a salesperson might find out about it ahead of time and hold or time their sales duration and what you put into it. reports to fit the timing of the program. In a recent study by St. Louis-based Incentive Research Foundation (IRF), long- “You need to factor that in. What is the potential for people hearing about it, and term incentive programs outperform short-term programs. The study found that incen- what are some of the behaviors that would impact the payout they receive or the tive programs that run for a year or more produced an average 44 percent performance results? If they know it’s coming, what percent can they hold?” he said. increase, while programs running six months or less showed a 30 percent increase. Smith said the main keys to success with a long-term incentive program are to And programs of a week or less yielded a 20 percent boost. ensure that the program goals are meaningful and relevant; everyone who can Michelle M. Smith, CPIM, CRP, and vice president of business devel- contribute to achieving the goal participates; program requirements and opment for O. C. Tanner, a Salt Lake City-based company that award levels are communicated explicitly; awards are compelling specializes in employee recognition programs, said that the to the participants and commensurate for the effort required to IRF research findings could be the result of the extended— achieve them; and the program is tracked and reviewed reg- and often better—planning and design that goes into a ularly to remain relevant and in sync with changing mar- longer program. ket or corporate conditions. “Even though we should all invest as much thought “The first key to success is creating the program and attention in a shorter program as we do with a around specific, measurable goals and activities,” longer one, I find that some companies short-cut Smith said. “The criteria should be firmly estab- crucial design elements when a program is shorter. lished at the onset of the program and clearly com- Invariably, this leads to less-than-optimal results municated to the program participants, with an and may account for the IRF findings,” she said. equally clear message of specifically what they can Rodger Stotz, chief research officer of the IRF, do to contribute to the achievement of those goals, suggested that the reason long-term programs have along with how and what they will be awarded for a propensity to produce better results is because meeting and exceeding those goals.” short-term programs tend to be more spurt pro- The second factor is “putting a process in place to grams. track and measure the results. The most successful “What I mean by that is that they are generally long-term programs track and review progress looked upon as that we have an immediate need, and throughout the program so that adjustments can be made, let’s do something quick, as opposed to a long-term pro- if necessary, during the course of the program, rather than gram that tends to be more systemic. What you have is rather just waiting until the end to analyze the final results,” she said. than looking at two exactly similar plans or programs, and one’s Consistency in program execution and fairness in program just longer than the other, you are looking at two different objec- structures and/or award distribution are the most common factors tives,” Stotz said. cited in programs that meet their intended objective. Smith noted the fol- “With short-term programs [that run, on average,] from 30 days to six months, you lowing best practices to create a recipe for success with long-term incentive programs: tend to see a more, almost reactive approach to a unique situation … people saying that we need to do this and we need to move this product, or address our downturn as • Decide up front specifically what you wish to accomplish with the program and who quickly as we can. More short-term programs are focused on a specific area that needs are the participants that will enable you to achieve those goals. to be addressed,” he added. • Established goals must be realistic, fair and consistent. Meanwhile, systemic, longer-term programs generally are tied to longer-term goals, • Awards should be commensurate with the effort participants must expend to and usually are looking at more of an overall performance rather than a narrow focus. achieve them. “You have to look at them being different in timeframes, but different in applica- • Program objectives and the qualifications to achieve awards must be clearly tions and specific objectives,” Stotz explained. “Then you get into why you would see communicated to all program participants at the beginning of the program. Since one of those longer-term programs yielding higher than a shorter-term.” the program is expected to run for several months, it’s prudent to offer frequent Long-term programs require careful crafting in order to have a chance at success. reminders. Incentive industry experts discussed the main ingredients to a long-term incentive • Consider if some training is needed for participants to achieve the stated goals. program, as well as some of the dos and don’ts of ensuring an effective program along • Progress toward goals should be tracked and measured meticulously and this with the main advantages and challenges of such a program. information should be available to all program participants on a regular basis. • Awards need to be compelling and relevant to the participants. The Key Ingredients • When awards are earned they should be presented as soon after the achievement as One of the key elements to a long-term incentive program is a clear objective or set possible. of objectives, and an understanding and appropriate measure of whatever you are try- • Gather feedback and analyze results throughout the tenure of the program. ing to achieve, Stotz said. Another ingredient is communications. You need to communicate that to the program Meanwhile, Bruce Bolger, managing director of the Enterprise Engagement participants, and have an effective administration process to be able to track and mon- Alliance (EEA), said that according to the seminal work on incentive program design itor the program. that was published by the Incentive Research Foundation (IRF)—“Incentives, “Additionally, you would need to have the appropriate and desirable incentive Motivation, and Workplace Performance: Research and Best Practices”—the founda- opportunities. Individuals and teams look at this, will they say, ‘one, I can do it, and tions of a successful program, especially long-term programs that focus on creating a two, it’s worth doing. That applies to short or long-term.” lasting culture of performance, include: Also, “One of the areas that becomes more critical is ongoing communications and feedback. Some organizations may think they understand the incentive, and they put • Clear leadership—a vision of what the mission is and what it means to everyone it on autopilot. Out of sight; out of mind,” Stotz said. “It’s easy for participants to for- involved. This necessitates management that is properly coached and bought-into

20 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM the mission, and one who can instill passion at the front lines. The amount you can learn by talking to participants, talking to managers of partic- • Clear communication—continually reinforcing in digestible nuggets the mission, ipants, program administrators, and finding out and looking at the financials, finding progress, challenges, opportunities and tips. Doing this effectively involves multi- out what worked and what didn’t work, what did each of the audiences like or dislike media communications based on how the audience best receives the messages; e- allows you to be better prepared to design and implement the next program, Stotz mail, printed newsletters, posters, meetings, events, etc. advised. • Capability—giving people the tools to do what is needed and making sure they are “That’s one of the areas that many organizations overlook. As an industry, they’ve capable of doing what’s asked of them by offering resources such as focused realized the value of doing that in the last two years, when incentive programs came training programs. under scrutiny and a number of organizations and program managers had not done the • Support—creating the conditions in which people feel supported by management; assessments to show what the results were and what the value vs. costs were and what making it clear that their efforts have meaning and they believe that the organization they learned from it in terms of building better programs in the future,” he said. will support their goals and provide incentive rewards fairly. This can be Any endeavor depends on the desired outcome. Surveys are good, and highly rec- accomplished through Web-based support such as an active intranet, social ommended, but they don’t offer in-depth ability in understanding nuances, reacting to networking, company meetings, and sharing information among employees, etc. what you are hearing, and going beyond prescribed questions. On a survey you • Task value—reinforcing the importance of every person’s work. That can be wouldn’t do that. accomplished through recognition programs, rewards, meetings, personalized “That’s the value of person-to-person,” Stotz said. “You can dig deeper, and follow communication from top management, etc. trains of thought and uncover areas that would not be covered in the survey itself. • Emotion—creating an atmosphere of fun. This can be accomplished through There is a technique that I recommend people consider, particularly as they look at the friendly contests, team competitions, social responsibility programs, travel survey and track the survey. If you interview [participants] that did extremely well, programs and merchandise offerings. and a few who didn’t earn anything, talk to them about why.” • Measurement—having clear ways of tracking results and feeding information back Ask: What did you do? Why do you think you didn’t earn a reward? Were there into the program. other obstacles when you look at these other extremes? You get a really good profile. Once you understand what the obstacles were, what you may find is that high per- The Dos and Don’ts formers got much more support from the managers, while low performers were not There’s definitely a right way and a wrong way to do things. given support or instructed to do things contrary to getting the award,” he added. And so it goes for ensuring that a long-term incentive program remains effective. Conducting a program assessment also can show the success or failure of managers. One of the most important dos of a long-term incentive program is to engage a focus “Why do we have managers who are directing people contrary to what they wanted group of participants from the very beginning. to focus on? That would be a way to look at the effectiveness of management mem- Oftentimes, participants love one of the areas that are overlooked. The idea is to bers,” Stotz added. “[You might find that] Poor performers in the incentive programs bounce the ideas off of other people who are going to be a part of the program, Stotz paralleled poor performance in other metrics, in terms of productivity. Is it an individ- said. ual issue remedied through coaching and other means of performance improvement, Ask the following questions: Do they feel the program will be worth it? How could or is the person wrongly positioned in that role?” people actually gain from the system? Is this something we have enough safeguards Smith agreed. for, or could people cheat the system? And, do you think this will be a positive going She recommended that companies do a follow-up survey to all program participants forward in terms of improving performance? “In some cases, you might like the idea, after the completion of the program to gain additional feedback on the program expe- but [find that] this is the wrong time of year, and we just heard the economy is in the rience and to gather ideas to improve the program in the future. tank,” Stotz said. “When a program will be running for a year or more, it’s beneficial to survey par- ticipants midway through the program to garner helpful insights that may be able to Also, do get management support. “No. 1, you want managers to understand what you’re doing. Two, they will want enhance the program,” she said. to know how it will impact other things they are trying to do, and third, it gives them Additionally, Stotz pointed out that companies do need to be aware of seasonality. the opportunity to orient in terms of their role. How will they provide input, support “You have to be careful that you understand the sales cycle or biorhythms of the to their employees? How are they going to support it? The issue is what’s in it for organization, so that you take into account that you don’t overpay because you put an them. Is there a portion of incentives for them?” Stotz said. incentive on during the high season, or that you overestimate the objectives during a Do an end-of-program assessment. low season,” he said.

Write 109 on reader inquiry fax card Four other key elements of a long-term program, Bolger suggested, are to: iors, as well as attaining the overall goal. Longer-term incentives usually focus on core organizational goals and making incremental improvements over the prior year,” • Have a strategic plan that addresses the critical success factors. Smith said. • Execute it. Other benefits of long-term incentive programs, Smith noted, are that being nomi- • Measure it. nated to be a mentor to colleagues or asked to provide input on corporate projects are • Continually fine-tune. highly esteemed opportunities for sales reps and an inexpensive means of further rec- ognizing the rep. To boot, Smith said that a well-crafted long-term incentive program should be “Offering the salesperson the opportunity to earn awards for their support team has inclusive of all the departments and stakeholders that can contribute to the success— also proven to be a very effective long-term motivation,” she said. or the demise—of the program goals. Stotz said, “I would add one more, which is that very often, because it is long-term “A significant, but often overlooked step in designing an incentive program is to and achieves greater results, the opportunity in terms of reward earnings can be create opportunities for everyone to engage in the program and have their contribution greater.” recognized. Activities and behaviors that aren’t easily quantified can be included with Longer-term programs also prompt more funding or a larger payout because of the pre-determined or subjective award levels built into the program structure,” Smith duration. And rewards depend on what the objectives are and what their value is to the said. organization and what portion of that value can be provided to the award budget. “The key is recognizing behaviors and activities that reflect your program’s objec- “I’ve seen longer-term [programs], nine months to a year long, where individuals tives. If one of the goals is ‘superior customer service,’ then reward behaviors that can earn at least two to three percent equivalent of their salary,” Stotz said, adding that reflect that goal. If you find it difficult to quantify the goal, create specific activities some rewards can be as elaborate as a large screen TV, or even a weekend getaway that reflect the goal, such as ‘respond to every client request within one business travel opportunity. day,’” she said. And besides a greater reward with longer-term programs, the likelihood of partici- Also, she said that when implementing discretionary awards in the program, it’s pants creating a new habit is greater as well. imperative that those behaviors and activities are as clearly defined as possible to “A short-term incentive program would be probably less likely to have participants avoid confusion or inconsistent distribution of those awards. create a new habit. A short incentive program probably would not be adequate time to “Engaging all stakeholders increases the enthusiasm around the program—and your where the new behavior has become embedded in the ongoing performance,” Stotz chances of successfully achieving your goals,” Smith added. said. “With a long-term it’s more likely that they end up understanding and start doing that overtime. In the fifth and sixth month they start to repeat that performance. It’s As for the don’ts more likely at the end of the year for that to be maintained.” With benefits, though, come some challenges with maintaining an effective long- Smith said that it’s important that companies don’t “change goals too often or term incentive program. they’ll run the risk of confusing and frustrating participants, as well as creating the One of the challenges is keeping participants active and engaged, so that frequent perception that they’re moving the goal to prevent participants from attaining it— communications, fresh ideas, and tracking program results become vital motivators either of which will cause people to disengage with the program.” throughout the course of the program to avoid “program fatigue.” If changes are reasonable and justified, and all necessary training and support are Another challenge is finding ways to motivate consistently outstanding achievers, offered to help make the new goal achievable, most participants will understand and highly commissioned talent and perennial incentive winners. This is often a sign of a embrace the change. productive, growing organization with an engaged and spirited staff. Sales reps who Long-term incentive programs, she said, require the same attention we’d give to all always want “more” from the incentive program are exhibiting healthy sales behavior. other business initiatives—they require upkeep and maintenance. “Many of our clients have addressed the challenge of continuous award escalation “We should be concerned when a program doesn’t change for a long period of time, or program fatigue by incorporating a recognition program into their long-term sales as it’s likely that the program goals are outdated and participants are probably not incentive program to add another, very different set of goals and awards to which sales being stretched to develop new talents. The longer a company waits to update their reps will aspire. With high-income performers, bragging rights are often just as impor- programs, the harder it is for participants to adopt the new rules,” she said. tant—sometimes more so—than the material awards they earn,” Smith said. “Creating “Continuous ‘care and feeding’ of this important business tool should be viewed by an elite ‘club’ recognizing various levels of prestigious career achievement is a pow- all as standard operating procedure and will pay off handsomely.” erful and effective partner to a lengthy sales incentive program.” Similarly, Stotz said, don’t put your program on autopilot, thinking that you can just Smith added that the incentive program would continue to applaud the sales suc- ignore it. Don’t expect the awards to do everything. cesses over the course of the current year. “Some individuals think that we put out an award opportunity, and then think they “The recognition program would be designed to honor reps for their cumulative can go do other things. Don’t expect it to carry the weight of it. You need communi- career accomplishments. Award levels would be designed to recognize the complete cations, feedback and measurement.” corporate contribution of the sales rep beyond their revenue contribution, although Don’t expect managers to fully support or comprehend the program. Make sure they award levels would often include components for multiple years of winning the sales understand it. And don’t be afraid to offer a fast-start bonus. incentive,” she explained. “Other components might include: earning industry certifi- “One of the things is priming the pump, particularly with an incentive program. cations; raising client satisfaction scores; participation in trade associations or philan- Most individuals are cynical. [They think], Can I really earn anything? One of the thropic initiatives; mentoring fellow sales reps; increasing margins or profits; reduc- techniques to get people started is to have a short-term fast-start earning opportunity ing selling costs, stellar performance in one of the company’s core value areas, etc.” in addition to the longer-term program incentive so people get into it sooner,” Stotz Companies should keep in mind that a “healthy and vibrant incentive program is explained. crafted to include multiple ‘recognition touch points’ to the sales rep and the best pro- With longer-term programs, Stotz added, there always are participants who will say, grams are fully supported by actively engaged senior management,” Smith said. “In a “I’ll do that tomorrow. I’m pretty busy now.” With a fast start—it’s only good for the workforce growing in the number of telecommuting sales reps and e-mail communi- first 45 days. So, if they see other people earning awards, they will be more inclined cations, senior management’s personal participation in incentive and recognition is to participate earlier, before it gets away from them. increasingly important and meaningful to reps. Award choice surveys bear this out— Finally, Bolger added, don’t: opportunities to share a meal or spend one-on-one time with management are often more coveted than expensive award options.” • Think that one-size fits all—incentive programs need to reflect the company culture Also, it’s essential to put incentive programs into context. and business goals. “We run the risk of programs, short or long, becoming stale and uninspired when • Rely on incentive programs as the only way to motivate employees to perform. they become nothing more than a means to ‘get stuff,’” Smith said. “If we fail to add • Try and do too many things at once. Keep it focused. a greater dimension to our incentive programs then we are guilty of commoditizing our own work and shouldn’t be surprised when reps act like insatiable consumers The Long-Term Effects, Benefits, Challenges price-checking each award and always looking for higher and higher priced rewards Choosing to run a long-term incentive program should be based on what you hope instead of concentrating on the program goals.” to achieve with the program. She added, “Clearly tie the reward to the corporate initiative for which it was Smith said that incentive programs that run for a year or longer are more effective earned. Paint the bigger picture and clearly and specifically delineate how each indi- for attaining goals that by their nature take longer to achieve, and often require mul- vidual or team contributed. If we successfully articulate how their work contributes to tiple skills and behaviors to accomplish the goal. the overall corporate mission, they will relish the ‘reward’ that comes from truly mak- “The program frequently includes rewards for developing those skills and behav- ing a difference and being recognized for doing so.” PIP

22 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM Ready, Set,

By Rick Dandes Engage! Employee Engagement Delivers Bottom-Line Results

In today’s fast-paced and often turbulent business environment, having a high-per- formance, engaged workforce is critical to a company’s bottom-line profitability because it drives higher quality, customer satisfaction and revenue growth. Study after study by human resource, sales and marketing experts shows that the benefits of engaged employees to corporate performance and to the bottom line are so pervasive that it’s almost impossible to deny the business imperative of actively incor- porating engagement initiatives, such as incentives (both cash and non-cash), into cor- porate operating plans. One recent research study, for example, by The Gallup Organization found that engaged workgroups are:

• 18 percent more productive. • 16 percent more profitable. • Generating 18 percent higher earnings. • 37 percent less prone to absenteeism. • 12 percent better at engaging customers. • Creating 2.6 times higher growth rates. • Reducing quality defects by 60 percent. • 51 percent less likely to be a source of employee theft. • 62 percent less likely to be involved in on-the-job accidents. • 51 percent less likely to leave (in low-turnover companies), and 31 percent less likely to leave (in high-turnover companies).

“No doubt about it, engaging employees and customers is a very smart investment that returns significant return on investment,” said Michelle Smith, vice president, Business Development, O. C. Tanner, an international business consulting and mar- keting group with world headquarters in Salt Lake City, Utah. While these statistics make a compelling financial case for engagement, Smith said, an important—and often overlooked—additional benefit to corporate performance is that these issues (absenteeism, quality control, turnover, etc.) occupy the vast majority of managers’ time. “By reducing the incidences of these problems,” she added, “organizations gain an additional performance lift by freeing managers to focus on high-gain initiatives, rather than spending so much time trying to solve these day-to-day problems. This is an example of one of the many ‘cascading’ corporate benefits of engaging your work- force.” Interestingly, Smith continued, “companies that invest in engaging both employees and customers can achieve as much as a 240 percent advantage over competitors, demonstrating that results are increased exponentially when engagement strategies are integrated and address a broader audience.” Engaged customers represent a 23 percent premium in terms of profitability, rev- enue and relationship growth. Such loyal customers deliver significantly enhanced value by buying more products, their willingness to spend more for products, return- ing to shop more often, and having longer shopping experiences. Smart leaders have enthusiastically embraced engagement initiatives that target their workforce and other stakeholders to gain the advantages that a hyper-competitive marketplace requires. They have to in order to survive. Progressive leaders entered the downturn with a workforce fired up and committed to leveraging the available resources to turn things around as quickly as possible. And now it’s paying off as America slowly works its way out of the Great Recession. Not only are companies with engaged workforces producing results, but also they’ll be perfectly positioned to leap forward in a redefined, healthier economy, unlike their competitors who may be waiting to engage their staff until the economy totally recovers. These organizations will likely find themselves falling further behind the curve.

WWW.PIPMAG.COM PREMIUM INCENTIVE PRODUCTS JANUARY/FEBRUARY 2011 R 23 “A leaders’ goals,” Smith said, “should be to improve engagement scores within Another factor that may help convince CFOs of the value of engagement is that their organization as much as possible, and the good news is that the goal is well with- most investments in motivation or incentive programs pay for themselves from the in their own power. A little appreciation, guidance and feedback from them go a long increased revenues and/or cost savings they generate. way in keeping employees engaged and on the job.” “The facts,” Smith said, “are clear and quite compelling that motivation and incen- tives are important and proven business tools we should all be using, and the benefits Identifying the High Performer of more engaged and skilled workers continue long after the program ends. The effec- tiveness of motivation and incentive programs as cost-efficient vehicles for improving So, who are these engaged employees? employee engagement, aligning the workforce behind corporate priorities, and “He or she is most likely to be among your top performers,” observed Mike Ryan, increasing productivity is well-documented.” senior vice president, marketing and client strategy, of the Madison Performance While these programs are a positive experience for employees, it’s the employer Group, based in New York City. “But, I think if you look at why engagement is critical who gains the most from them in the increased revenues and cost savings they can today, there are some issues that really resonate with business leaders. One is that an generate, and finding these opportunities is the role of the CFO as steward of the com- engaged employee is more likely to adopt the level of change, the philosophy of pany’s finances. change needed by some organizations to grow in a competitive marketplace.” “Corporations worldwide are scrambling to find effective ways to not only attract In other words, Ryan said, an engaged employee is more likely to “roll with the and keep the best talent,” Smith said, “but also to elevate their performance, produc- punches. And not only adapt to change but innovate along the way.” tivity and service levels to new heights. Embodied in this quest is the ability to align Ryan agrees with Smith “that an engaged employee is more likely to impact the cor- individual behaviors with strategic corporate objectives. And, importantly, to motivate poration and the customer experience, so when you look at engagement impacting and reward those who meet or exceed those objectives.” customer performance, the idea of innovating, adapting to change and enhancing the In today’s economy, organizations must achieve maximum return on investment in customer relationship are things that business executives are really focused on today.” their people to boost corporate performance and gain competitive advantage. It’s what A company’s success is a function of its people, added Jennifer Rosenzweig, of the distinguishes and differentiates top-performing companies from those that won’t be Forum for People Performance Management and Measurement, based at around next year, and every CFO is concerned about that. Northwestern University, Evanston, Ill. “So the more highly engaged the person, the “So if you’re sitting down with a CFO,” said Rosenzweig, “start with the argument more connected and committed they are to their work, more connected to their organ- that engagement equals productivity, which equals bottom-line impact. The more you ization, the more productive they will likely be.” engage employees, the more they tend to stay with the company, and the less turnover Rosenzweig believes engagement is strategic, as well as tactical. you have, the less cost. So incentive programs motivate people to reach significant “You need to have a distinct point of view of your employed strategy,” she said. And goals, and meet the payoff. But, by their presence, they encourage more people to be that means the kind of relationship you want to build with your employees in your more fully engaged in their work, so there is a ripple effect with incentive programs.” organization, how you want to lead them, what kind of culture you want to create, the values you have, and how you design a mission and vision. Starting Up All these factors reflect what you are as an organization, which in turn attracts cer- tain kinds of people to your workforce. Incentive programs are one of the most “That’s just some examples of strategy,” Rosenzweig said. “With that as a cost-effective and powerful tools to help backdrop, you can start to define tactics to create an environment that promotes achieve your business goals, but the funda- engagement.” mentals can’t be short-changed or put on Engaging the CFO: ROI Matters autopilot if you expect to be successful, Smith said. “If I were going to have a cup of coffee with a Chief Financial Officer,” Mike Ryan Organizations need an understanding of said, “I would talk about how return on investments should be inspected from a lot of the basics before creating or designing an levels. There is the issue of running incentive programs effectively, and then there is effective incentive program. Start by under- the issue of incremental financial gains associated with improved customer satisfac- standing the audience you are trying to tion, improved productivity and really all aspects of running the business.” reach. But if you were to have a conversation that truly resonates with a CFO, he added, “Whether it’s salespeople or service per- it comes down to market valuation. sonnel,” Rosenzweig said, “understand what Over the years intangible assets drive an increasing part of an organization’s market they are about and their role in the organiza- value. When it comes to valuation, Ryan explained, “What’s important is an organi- tion. Also, set clear and specific goals, so it zation’s ability to continue to be an ongoing concern. Will it still have market is clear what outcome you expect. Don’t be demand? Will it still have access to resources? And increasingly, the access to afraid to have multiple goals. Have the award in line with the difficulty of the chal- resources is people. If an organization has a type of human capital strategy in place lenge, and allow for some customization.” that drives a higher level of intellectual capital, drives a higher level of innovation, Rosenzweig emphasized the latter point. “The incentive program you design should then the organization will likely be valued higher.” not just be a one-size-fits-all,” she said. “It should allow people to uniquely feel moti- Michelle Smith would have even another approach to a CFO. vated and appreciated.” “My favorite engagement data point that resonates well with CFOs is from the O.C. One thing organizations overlook is the role of the manager. Tanner Global Recognition Study done by Towers Watson,” she said. “It found that “I believe there are two fault lines in an organization that incentive programs need over a three-year period, companies with engaged employees grew their operating to attend to, otherwise they are going to be dead in the water,” Ryan explained. income by 19 percent. Over that same period, organizations without engaged employ- One is the mixed message that is coming from the C-suite and the role of the front- ees experienced an operating income decline of 30 percent. The almost 50 percent line manager in really driving the level of engagement. growth variance is something few CFOs or CEOs can afford to ignore.” “Organizations right now are sending out messages that say we need to cut costs,” Smith also noted that a 15 percent improvement in employee engagement equates he said. “But in doing so they are also communicating to front-line managers mixed to a 2 percent improvement in an organization’s operating margin, another powerful messages that say don’t spend needlessly. It’s important that organizations position data point for CFOs. recognition activities, either funded or non-funded, as a big part of driving the Other research has proven that companies that recognize and incent their employ- business.” ees, partners or customers outperform their competitors by at least 30 percent to 40 Organizations take their cue from the top. It’s important for leaders to communicate percent in revenue growth, net income and stock performance—indicators that most to managers that not only do they have the authority to recognize but also they have CFOs monitor regularly. the responsibility to recognize. And once organizations do that, they need to let man- “Moreover,” Smith added, “the employees engaged and influenced with incentive agers have a wide berth as to how they use recognition. programs are busy spending their day influencing other vital corporate assets—cus- “There is a correlation,” Ryan said, between a manager’s frequent interaction and tomers! The link between customer satisfaction and loyalty, and employee satisfaction an employee’s attitude about the job. “Employees are more likely to be engaged when and loyalty has been firmly established; the link between profitability and loyal cus- they feel that a manager not only understands what they do but also encourages them tomers are the result of engaged employees. Putting incentive programs to work is far to use their skills as much as possible. In other words, the aspect of encouraging and more than a good idea—it’s a profitable plan worthy of any CFO’s attention.” recognizing an employee at the managerial level is really critical in driving enterprise In an increasingly competitive market, incentive and recognition programs engagement.” designed to improve engagement can no longer be viewed as a discretionary expense, After all, a manager is going to know where an employee’s deficiencies are. So a but as a vital and strategic tool to ensure corporate growth and survival. CFOs should manager can use that aspect of intervention to drive that particular employee’s skill appreciate the quantifiable data and lead the effort to improve engagement in their set. It’s also important to look at a manager’s style, Ryan noted. organizations. There are three common styles of managing: the transactional manager, who man-

24 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM ages to metrics. He says, “Let’s get 20 of these things done today.” Then there is a manager who manages to a relationship. She is more charismatic in her approach. And then there is the transformational manager—one who recognizes a responsibility to Doing It Right bring out the best of the employee, because that is the way that the manager is going • Sears Roebuck found that for every 5 percent improvement in employee satisfaction there to be able to reach his or her goals right then and there on the front line and develop was a 1.3 percent increase in customer loyalty. That produced a 0.5 percent increase in leaders of the organization moving forward. revenue growth. And amounted to $200 million for Sears. Managerial focus should not just be on metrics—quarter-to-quarter results—but on the long-term goals such as developing human assets. • Texas Roadhouse has a reputation for recognizing and motivating their employees—even through recessionary times. Management believes that if the company takes care of its The Effectiveness of Non-Cash Rewards employees, those employees will take care of the restaurant’s guests. The results bear Cash is a major motivator for salespeople (and the human desire to acquire things). that out: But handing out a cash reward doesn’t appeal to the emotional aspects of what people - 89 percent of guests plan to return to the restaurant. want from their compensation: the need to bond and the need to learn. - 71 percent dine at a restaurant at least twice a month. In a tough economy people need to feel like a productive member of a team. - Employee turnover has dropped 15 percent over the past two years. Salespeople get that not only from the affirmation when closing a sale with their cus- tomer, but also from their employers when they are told they’ve done a good job. • The Forum for People Performance Management at Northwestern University conducted a Research indicates that incentive program outcomes will be substantially improved study with a global hotel chain, which concluded that, for ‘the extent to which employees try when non-cash awards are used instead of cash, Smith said. to satisfy customers,’ a 10 percent increase in this factor resulted in a 22 percent increase “People may say that they prefer a cash award,” she noted, “but cash doesn’t change in customer spending per hotel visit. their behavior significantly, nor is it remembered as an award. If you want to get max- imum results from your program, stick with non-cash awards.” Sources: O.C. Tanner and The Forum for People Performance Management. Here are some reasons why it may be a smarter strategy for your company:

• Cash awards have no “trophy value.” Cash is usually deposited into the bank and and brightest from defecting. used to pay bills. In fact, most people don’t recall how they spent cash after just 10 Recognizing that you need to do something is the first step, Smith explained. days! Contrast that with a non-cash award that brings back the memory of why it was Be mindful that this isn’t a one-time fix—it’s more important than ever now to keep earned and the good feelings of being awarded every time the person sees it. You want the lines of communication open between leaders and staff. As a leader, the key is to that long-term impact benefit from your awards. strengthen and rebuild trust with your team, and that happens when you’re available, • Cash frequently becomes an entitlement or is considered compensation by employ- when you listen to them, and are open and honest about what’s happening in the ees. When that happens, the opportunity for it to motivate is diminished and you will organization. face the additional problem of appearing to reduce pay if you ever eliminate the Taking the time to share news and ideas with staff will do wonders in reducing any award. Non-cash awards don’t pose these risks and are a safer alternative. anxiety that may be present. Help the team understand why you’ve had to make some • Social protocol dictates that it’s impolite to brag about cash awards or bonuses, of the decisions that may have adversely affected them and your candor will go a long making it a less-than-ideal award choice. You want your program participants to share way in keeping them engaged. If you do have some folks who’ve become disenchant- their excitement about receiving awards with their colleagues and friends. This is ed, talking it through is the quickest way to rebuild connections and trust. especially important in team or peer-to-peer programs, so non-cash awards would be Increase your use of incentives and motivation, Smith said. “These cost-efficient more effective when working to build teamwork, too. programs are effective vehicles for delineating what’s important to the company and • Most non-cash awards can generate significant savings over cash because the per- rewarding those who are achieving their goals. By recognizing this publicly, you ceived value of non-cash awards can be as much as 30 percent higher than what you strengthen your bond with that employee and reinforce desired behavior for the entire would actually pay for that award. Motivation and incentive professionals work hard team.” to design award catalogs that include awards with high perceived value so that you can get maximum impact from your award investment, or spend less without compro- What Can Go Wrong? mising the quality of your program. • Another “soft” benefit in today’s stressful environment is creating resilience. The most common performance program design mistake is not creating the program People have been hit hard with bad news and are faced with challenging problems. around specific, measurable goals and activities. Criteria should be firmly established There has to be something to counter that. An employee needs to be able to say “OK, at the onset of the program and clearly communicated to the program participants, we’ve had a lot of bad days, but today is a good day. I accomplished something worth- with an equally clear message of specifically what they can do to contribute to the while today, and I know it through recognition or incentives.” Recognition can build achievement of those goals, along with how and what they will be awarded for meet- up a reservoir of good will that allows people to push through the bad news and ing and exceeding those goals. continue to strive for reaching goals and ever increasing challenges. Another mistake is not putting a process in place to track and measure results. Not giving employees timely feedback is also a problem. Some programs begin Dealing With the Disengaged with a big splash, but then no one ever hears anything. Feedback needs to be very specific to the person. In other words, how am I doing? It’s a big deal when your highest potential people are not engaged. If I can’t see my own contribution and connection it makes it harder for me to gauge “The most alarming facts about engagement pack a double bad-news punch,” Smith my progress. said. “Only 10 percent of employees are currently engaged (62 percent are apathetic; Make sure that people have all the resources that they need. 28 percent are actively disengaged), and engagement scores have plummeted farthest In many organizations, certain departments are in the spotlight more than others, among high performers, who are now 2.7 times more unhappy than other employees.” despite the fact that others’ individual contributions are every bit as important to the The business world’s rising stars are increasingly disengaged and actively seeking overall goals of the organization. Don’t make that mistake. new employment opportunities. Don’t change goals midstream. If people know they have to achieve X and along Smith suspects that high performers are feeling the majority of the business impact the way management changes their mind and now you have to do Y it can be demor- of the last two years. These star performers have always been the employees leaders alizing. Don’t create moving targets. could count on, and have likely gone to with additional projects and assignments as Setting up an incentive program, Smith explained, requires forethought and good layoffs happened and everyone was expected to do more with less. design. It’s not just about sales commissions or gold watches; nor is it a simple feel- But unless they are well rewarded and acknowledged for their extra contribution, good intervention. It’s about defining broader business goals, drawing up strategies to their enhanced discontent is understandable. These employees may be waiting for the get there and aligning them with each individual in your organization. It’s only economy to heat up so that they can move on to new opportunities that they know are through focusing and harnessing employee efforts that the company can hope to excel out there for them. and achieve their goals. “I often think of disengagement as a form of sabotage,” Rosenzweig said. “A dis- Feeling appreciated and being recognized for one’s work continually ranks at the engaged employee is often not just passive, but actively thwarting the efforts of the top of why people remain loyal to their employer, and those motivated employees organization. It may not be deliberately malicious, such as people who spend an inor- afford their employers tremendous advantages in the marketplace. dinate amount of time complaining about a situation, but it also plants seeds of dis- As workplaces continue to change in this new economy, employees are being asked content, fanning flames. So layer upon layer of problems can stack up in disengage- to adapt, learn, readapt and relearn in order to ensure that companies themselves retain ment, and instead of being creative in solving problems and moving forward, the a competitive edge. Recognizing and appreciating these employees is very important organization can slip back.” to corporate survival. Incentive and recognition programs are a proven, strategic While the news is discouraging, employers can do something to prevent their best opportunity to do just that. PIP

WWW.PIPMAG.COM PREMIUM INCENTIVE PRODUCTS JANUARY/FEBRUARY 2011 R 25 Perfect Timing: Watches That Motivate

2 FORM & FASHION >> TAG Heuer’s latest addition to the popular Formula 1 Collection (model No. WAH123.BA0861) features this new and fashion-forward Ladies 37mm polished stainless steel case with ceramic fixed bezel surrounded by diamonds, White dial with date window at 3 o’clock, three-row alternating ceramic and stainless steel bracelet with steel folding clasp, Swiss Quartz movement, water resistant to 200 meters. $1,700 touRneau: 800-424-3113 Write 347 on reader inquiry fax card www.tourneaucorporatesales.com

3 << TRADITIONAL CHOICE Celebrating innovation by tradition, the Tissot Visodate Automatic Men’s Watch features a particular milestone of the era—the integration of a date display into the automatic mechanism, a signature of this new watch. The watch fea- tures a Swiss made automatic ETA movement, stainless steel case with exhibi- tion case back, domed sapphire crystal, leather strap with butterfly clasp, water resistance to 30M, 42 hours power reserve, and 39.3mm diameter. $650

<< Rymax maRketing SeRviCeS inC.: 800-379-8073 1 LIGHT BRIGHT Write 348 on reader inquiry fax card Full of pizzazz with a modern twist, the Citizen www.rymaxinc.com/PiP Eco-Drive Paladion features an 18-diamond bezel, with an additional 8-diamond dial on select models. Also features a date window and water resistance to 100 meters with Citizen Eco-Drive’s light-powered technology, so it never needs a battery. Utilizing the power of light, Citizen Eco-Drive technology converts light into stored energy to power the watch for at least six months, even in the dark. $399 4 BACK IN BLACK >> Citizen: 201-438-8150 ext. 8234 The Movado ESQ Swiss Bracer Mens features a stainless steel case on a black rubber strap. The black sunray chronograph dial features a unique date window. Write 345 on reader inquiry fax card www.citizenwatch.com Additional features include crown protector, anti-reflective mineral crystal, water resistance to 99 feet and Swiss Quartz movement. $450 movado gRouP inC.: 201-267-8182 Write 349 on reader inquiry fax card www.movadoincentives.com 5

<< A SYMPHONY OF STYLE The Movado Concerto Ladies features a 30mm stainless steel case with 36 diamonds and stainless steel bracelet. Additional elements of this fine ladies watch include a white mother of pearl dial, deployment buckle, sapphire crystal, Swiss movement and water resistance to 99 feet. $1,995 movado gRouP inC.: 201-267-8182 Write 346 on reader inquiry fax card www.movadoincentives.com

26 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM >> 6 << SIMPLE CLASS 11 TIMELY BEAUTY This LACOSTE Advantage Men’s Watch features a stainless steel and black enamel bezel, white dial This Ebel Brasilia Ladies watch has a stainless with stick markers, Lacoste logo at 12 o’clock and date display at 3 o’clock. Additional elements steel case and bracelet, white dial and applied include a black rubber strap, seconds hand, mineral crystal and water resistance to 5 ATM. roman markers. It is 23.70 mm from left to right $175 of case. Additional features include anti-reflec- movado gRouP inC.: 201-267-8182 tive sapphire crystal, Swiss quartz movement Write 351 on reader inquiry fax card and water resistance to 160 feet. www.movadoincentives.com $1,900 movado gRouP inC.: 201-267-8182 Write 355 on reader inquiry fax card www.movadoincentives.com 7 BLUE DAY >> The Tommy Hilfiger Logan Men’s watch has a solid stainless steel case and bracelet, with a blue enamel dial with red col- ored indexes and Hilfiger logo. Additional features include date display at 3 o’clock, mineral crystal and water resistance to 50 meters/5 ATM. $115 movado gRouP inC.: 201-267-8182 Write 353 on reader inquiry fax card www.movadoincentives.com

8 << MAKE A STATEMENT The Ventura Men’s Watch features sapphire crystal, gun PVD on stainless steel case, Swiss automatic movement, ETA 2824-2. 50m water resistant, on a black rubber strap. The watch has a see-through black dial and case back. The original model from 1957, the world’s first electric watch, is a Hollywood favorite. Its most notable appearance was on the wrist of Elvis Presley in the movie “Blue Hawaii”

and in the movie “Men in Black.” >> $1,295 12 PERFECT PRECISION Rymax maRketing SeRviCeS inC.: 800-379-8073 The Bulova Precisionist is the world’s most accurate watch, with a continuously sweeping Write 350 on reader inquiry fax card second hand. While most quartz watches are www.rymaxinc.com/PiP accurate to 15 seconds a month, Bulova Precisionist is accurate to 10 seconds a year. With dress, sport, sport/casual and diamond models, choices include this masterfully stylized casual design from the Claremont Collection, 9 TIME TO GO GREEN >> style 96B128, in stainless steel, with curved The small size Sprout watch is 80 percent eco-friendly and crystal, multi-layer brown dial, luminous hands, the large size is 86 percent eco-friendly, by weight. All calendar, brown leather strap and water resist- Sprout watches are in compliance with the CPSIA and are ance to 30 meters. lead and phthalate-free. The corn resin used in the watch $299 will not break down during wear and use. In a compost BuLova: 800-423-3553 environment, corn resin is 99 percent biodegradable to car- bon dioxide and water within 365 days. It is made from a Write 352 on reader inquiry fax card www.bulovaspecialmarkets.com renewable resource. Conventional plastics use an estimated 200,000 barrels of oil a day in the United States, but corn resin uses no oil resources in production. $2,500 vLC: 800-580-4608 Write 356 on reader inquiry fax card www.sproutwatches.com

10 << TITANIUM BLUES Forceful in nature, water is one of the Earth’s most raw elements, and the layered sunray blue dial creates this same essence. The signature mesh band wraps around the wrist to create a seamless contour with a layered dial that is home to white luminous indicators and numerals. Skagen denmaRk: 800-791-6784 Write 354 on reader inquiry fax card www.skagen.com

WWW.PIPMAG.COM PREMIUM INCENTIVE PRODUCTS JANUARY/FEBRUARY 2011 R 27 A Winning Hand: Gift Card Incentives

3 A LITTLE COUNTRY >> Cracker Barrel Old Country Store® Gift Cards are the perfect way to enjoy home-style meals in the restaurant or browsing in the country store, or both. Best of all, Cracker Barrel Gift Cards have no fees and no expiration dates, and are available in $10, $25 and $50 denominations. They can be redeemed at any of 597 locations in 42 states. cracker Barrel: 877-349-1234 Write 320 on reader inquiry fax card www.crackerbarrel.com << 1 CONVENIENCE MATTERS Let the Walgreens Gift Card help you motivate employ- 4 << FUEL UP ees, keep clients happy or say thank you for a job well Fuel their motivation with the Shell Gift Card. There are more than 14,000 done. The card is available in denominations of $5 to Shell stations in the United States, serving more than 6 million Americans $100 and has no expiration date or dormancy fee. Gift each day. There’s probably a Shell station near your employees and cus- card redemption is easy and convenient with more than tomers. In fact, more than 80 percent of Americans live within 5 miles of a 7,500 stores in 50 states. Each store carries more than Shell station. Purchase gasoline, auto supplies, food/snacks, a car wash 25,000 products, so there is always something for and more. It’s the perfect gift card for all your incentive and recognition everyone. Price discounts available on bulk gift card needs. No upcharges on denominations over $10 when you buy direct from purchases. RPG. Same day shipping, and fast, friendly customer service. Walgreens: 877-492-4222 royal Performance grouP: 888-shell-04 (743-5504) Write 321 on reader inquiry fax card Write 323 on reader inquiry fax card www.walgreens.com/corpgiftcards www.shell.us/giftcard

5 LISTEN UP >> Searching for the perfect gift for the music lovers in your life? Relax. Just give a prepaid iTunes® Gift Card, redeemable at the world’s No. 1 online music store. Choose from more than 11 million songs, albums, movies, TV shows, audiobooks and iPod® games, or download free podcasts from the iTunes® store 24/7. iTunes Gift Cards are available in $15, $25 and $50 denominations. Discounts available with no minimum order requirements. national gift card: 888-472-8747 Write 324 on reader inquiry fax card www.ngc-group.com << 2 OUTDOOR REWARDS 6 IF THE SHOE FITS… >> Give a Bass Pro Shops® Gift Card to your favorite out- Foot Locker GiftCards are your one-size-fits-all incentive and reward solution. Foot Locker GiftCards are redeemable at all Foot Locker, door enthusiast, and they’ll have three ways to shop: at lady Foot Locker and Kids Foot Locker locations in the United States and Canada. Champs Sports GiftCards is the all Bass Pro Shops® retail stores, all Bass Pro Shops® perfect choice for sports enthusiasts. Champs offers a full selection catalogs 24/7, and via the Internet at basspro.com of athletic apparel and shoes, as well as Fan Gear from the NFL, 24/7. Bass Pro Shops® Gift Cards are also redeemable NCAA, MLB, NBA and NHL. Foot Locker GiftCards and Champs at Big Cedar Lodge® and all Bass Pro Shops® restau- GiftCards are also available in an eCard format in the United rant locations including Hemingway’s Blue Water Café, States. Foot Locker Gift Cards are available in standard denomina- Islamorada Fish Company, Blue Fin Lounge, White River tions and never expire. Fish House, Zane Grey Long Key Lounge, Uncle Buck’s foot locker / chamPs: 800-690-5996 Brewery & Steakhouse and Uncle Buck’s Fish Bowl & Grill. Write 325 on reader inquiry fax card Bass Pro shoPs: 800-951-1000 www.footlocker.com www.champssports.com Write 322 on reader inquiry fax card www.owincentives.com

28 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM 7 << NEIGHBORLY Join your neighbors at Applebee’s for delicious food, friendly service and a hometown atmosphere that can’t be beat. From American classics like Applebee’s House Sirloin and Bacon Cheddar Cheeseburger to new Unbelievably Great Tasting and Under 550 Calories™ menu options like Asiago Peppercorn Steak and Teriyaki Shrimp Pasta, you’ll be sure to find a new favorite every time. Accepted in all U.S. and Canadian locations, Applebee’s gift cards have no fees or expiration dates aPPleBee’s: 800-252-6722 Write 326 on reader inquiry fax card www.applebees.com

8 A PERFECT FIT >>

Reward achievement with the TJX Gift Card, redeemable at four stores << and more than 2,000 locations nationwide. TJX stores offer top brand- 12 DINE OUT name fashions for family and home at values that beat department Darden is America’s number-one full-service dining store prices, every day. That’s hundreds of brands, thousands of company, serving more than 400 million meals each items, all on one card. Easy order, fast fulfillment. Choose TJX year at over 1,800 restaurants in the United States. The rewards—they’re personable, memorable and fun. Darden Gift Card can be redeemed at any Red tJX: 800-333-1387 Lobster®, Olive Garden®, LongHorn Steakhouse®, Write 327 on reader inquiry fax card Bahama Breeze® and Seasons 52® restaurant in the www1.tjmaxx.com/tjx/corp_rewards.asp United States. darden: 407-245-6493 Write 331 on reader inquiry fax card www.darden.com 9 << DINE IN STYLE Legal Sea Foods has long proven that a consistent, high-quality dining experience never goes out of style. Legal Sea Foods gift cards let you dine in, or, rather, see fish fly! Legal Sea Foods offers its renowned fresh fish and shellfish ready for home delivery, anywhere in the conti- nental United States. Specializing in lobsters just trapped from the cold waters of the North Atlantic, but offering everything from appetizers to desserts, Legal Sea Foods provides gourmet gifts that really deliver. legal sea foods: 800-328-3474 Write 328 on reader inquiry fax card www.legalseafoods.com

10 BEAUTIFUL >> Sally Beauty Supply is the perfect one-stop shopping destination for

all beauty needs. Sally Gift Cards give professional stylists and at- << home beauty enthusiasts access to more than 5,000 products for 13 GIVE CHOICE between-salon visits. From the latest styling appliances and skin Reward loyal customers and attract new ones with the care to the newest nail color shades, you’ll be amazed at the popular power of Best Buy Gift Cards. Your best customers can prices. choose the home entertainment and electronics rewards stoner Bunting: 877-447-5429 they really want at more than 1,000 U.S. Best Buy Write 329 on reader inquiry fax card stores or online at BestBuy.com®. Easy to use and easy www.giftcardcrew.com to give in any denomination from $5 and up with no minimum order and quick turnaround. Best Buy: 877-370-1234 Write 332 on reader inquiry fax card corporategiftcards.bestbuy.com 11 << GIVE A BOOST The Starbucks Card offers you the convenience to treat yourself—or someone else—to your favorite things at Starbucks stores. It’s the perfect gift for any occasion, and can be used at more than 9,000 locations all over the United States and Canada. Plus, you can turn your visits into rewards with My Starbucks Rewards. Then every time you pay with your card, you’ll earn Stars toward more rewards. Available in $5, $10, $25 and $50 denominations. Discounts avail- able with no minimum order requirements. national gift card: 888-472-8747 Write 330 on reader inquiry fax card www.ngc-group.com

WWW.PIPMAG.COM PREMIUM INCENTIVE PRODUCTS JANUARY/FEBRUARY 2011 R 29 16 FUN FASHIONS >> Unique from head to toe®. Gymboree has been dressing children since 1986 in fashionable clothing and accessories designed to let kids be kids in outfits they love to wear. Available for newborns, toddlers and children up to size 12. Use your gift card to shop in-store or online. gymBoree: 415-278-7677 Write 335 on reader inquiry fax card

www.gymboree.com << >> TICKET TO FUN 17 SUCCULENT REWARDS 14 Omaha Steaks Gift Cards make the ideal gift for friends, family and busi- Treat your colleagues, customers or contacts to Dave & ness colleagues. Since 1917, Omaha Steaks customers have been enjoying Buster’s gift cards. They can use them to dine on deli- legendary steaks, gourmet beef specialties, ocean-fresh seafood, perfect cious cuisine, sip signature cocktails or play any of the pork and poultry, decadent desserts and more. Omaha Steaks offers some- games in the Million Dollar Midway. Dave & Buster’s thing sure to please everyone on your list. Gift cards can be redeemed Gift Cards can be used for purchases at any Dave & online, by phone, by fax, or by visiting any Omaha Steaks retail location Buster’s location in the United States. Minor policy across the continental United States. variations by location. Gift cards may be used for pur- omaha steaks: 800-228-2480 chase of food, beverages, games, merchandise, taxes and gratuities. Write 336 on reader inquiry fax card stoner Bunting: 877-447-5429 www.osincentives.com Write 333 on reader inquiry fax card www.giftcardcrew.com 18 BRIGHTEN UP >> With more than 60 styles of world-class sunglasses along with apparel and accessories, the Maui Jim Gift Card has everything you’d expect from the leading brand of eyewear. And with the flexibility of Maui Jim’s new gift card program, it’s even easier to get the Aloha spirit. Consider Maui Jim Gift Cards for incentive programs, corporate gifts, loyalty awards and consumer promotions. maui Jim: 800-614-6790 Write 337 on reader inquiry fax card www.mauijim.com

19 >> REWARD CHAMPIONS Reward your champions with a Nike Gift Card and they’ll be able to shop Nike’s com- plete collection of performance footwear, apparel and equipment, or customize at << SMART STYLE NIKEiD.com. Redeemable at NIKETOWN, NikeFactoryStores, NikeWomen, 15 NikeClearanceStores and NikeStore locations in the United States, Puerto Rico and JCPenney has a mission to bring a level of affordable online at NikeStore.com and NIKEiD.com. style to customers that they cannot find anywhere else and offers a more exciting shopping experience than nike inc.: 877-220-6453 X 3 ever before. As one of America’s leading retailers, Write 338 on reader inquiry fax card JCPenney operates 1,108 department stores throughout www.nikestore.com the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet at jcp.com, and the nation’s largest general merchandise catalog business. Through these chan- nels, JCPenney offers a wide array of national, private and exclusive brands, which reflect the company’s

commitment to providing style and quality at a smart 20 >> LEVEL UP price. Gift Cards from SVM help grow your business when used JcPenney: 888-832-4438 as customer or employee rewards, product enhancement Write 334 on reader inquiry fax card offerings and attractive sales incentives. Take your www.jcpgiftcard.com promotion to the next level by displaying your logo or brand on the gift card to create a traveling billboard for your company. SVM has built trusted customer relation- ships on accurate, quick, on-time deliveries and convenient one-stop shopping with more than 150 national brands in stock and ready to ship. sVm: 800-972-7481 Write 339 on reader inquiry fax card www.svmcards.com

30 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM All That’s New & Innovative >> >> 1 STRESS-FREE TRAVEL 2 COOK SOMETHING UP Stressing about finding your luggage at the gate is a common headache for travelers. Naftali The All Clad Induction Burner is compatible with all magnetic cookware and features a ceramic Inc.’s new Easy2Pick Wireless Luggage Finder System was created to reduce stress and sim- glass surface. Settings are from 1 to 10, EX-Low to High, and it also features a Menu with options plify the process of finding luggage. A remote including Melt, Keep Warm, SlowLo, SlowHi, Boil, Fry and Sear. A timer options lets you walk away receiver small enough to fit on a keychain while cooking, and it features a residual heat indicator for safety. Recipe book is included. beeps and flashes red light when the speci- $400 fied bag is within 100 feet, alerting travelers 20/20 SpeCial marketS: 513-561-9920 when bags are coming around the carousel. Write 361 on reader inquiry fax card And, luggage isn’t the only application. The www.2020specialmarkets.com simple design of Easy2Pick makes it effective in tracking objects like mobile phones and vehicles. The remote keychain attaches to objects as easily as an ID tag. $24.95 naftali inC. Write 360 on reader inquiry fax card www.www.naftaliinc.com

3 << PICTURE PERFECT Fast, responsive and versatile, the Nikon COOLPIX S8100 with advanced CMOS sensor technology and incredible 10x zoom will capture fast-moving subjects in still images and Full HD (1080) movies. High-speed operation, exceptional low-light performance, outstanding image quality and sophisticated features mark the 12.1-megapixel COOLPIX S8100. The optical 10x Wide-Angle Zoom-NIKKOR ED glass lens covers 30-300mm, and the camera’s speedy startup, fast auto- focus, quick shutter release, superior low light performance and high-speed continuous shooting (five shots in one sec- ond) ensure capture of all your memorable moments. nikon: 888-547-8684 Write 362 on reader inquiry fax card http://rewards.nikonusa.com >> 4 COMFY-COZY The new innovative eco-friendly PakMat from AeroBed® Earth series combines portabili- ty and performance for an exceptional night’s sleep anywhere. Outdoor enthusiasts will love the ease of use and comfort of an AeroBed combined with the convenience of a self-inflating camp mat all-in-one. PakMat is an airbed that stores inside its own pump, and it needs no external power source, so it’s perfect for any occasion. It is made of earth-friendly, phtlalate-free material and is reinforced with a heavy-duty polyester, providing strength, comfort and total body support. Coleman: 316-832-2609 Write 363 on reader inquiry fax card 5 DIVE IN >> www.coleman.com Dive in, and capture it all in high definition 12.1 megapixel stills and video. At the beach, pool or on the slopes, you’ll never fear taking a camera along again. Waterproof to 33 feet, with a host of high-tech features. The 4x one-touch digital zoom will get you close to the action. A large 2.4-inch color LCD monitor lets you preview and then review your shots. Even record digital video under water or on land in any weather. Anti-shake and red-eye ensure in-focus photos and PictBridge lets you print from camera to printer without a PC. A built-in auto flash will enhance your shots in dim lighting or outdoors at night. $240 ViVitar/Sakar: 718-434-2356 Write 364 on reader inquiry fax card [email protected]

WWW.PIPMAG.COM PREMIUM INCENTIVE PRODUCTS JANUARY/FEBRUARY 2011 R 31 Ingenious Incentives & Rewards >> 1 GREEN GIVING >> 2 LISTENING PLEASURE Reward your best people and help the planet at the same time Experience musical detail and a comfortable in-ear with the Best Buy® Green Gift Card. Whether you’re striving to fit that conventional earbuds cannot match. An encourage a greener commute, more engaged employees or a enhanced acoustic design helps your music sound more eco-friendly workplace, the Green Gift Card provides the smoother and more natural. The headphones are motivation to help your company achieve its goals. No fees. No tested to meet rigorous standards for durability. expiration dates. Just Happiness™. Proprietary StayHear™ tips rest comfortably and BeSt BUy: 877-370-1234 securely in your ears while you’re on the go. Also Write 400 on reader inquiry fax card available: New Bose® MIE2 mobile headset: Take corporategiftcards.bestbuy.com calls with ease—and enjoy your music with Bose® sound and a comfortable in-ear fit. BoSe: 888-862-9283 Write 401 on reader inquiry fax card www.bose.com/incentives

3 GREAT SHOT >> The Canon PowerShot SD450 IS model has a 10x optical zoom with Optical Image Stabilization, providing the power to shoot distant sub- jects with sharp precision and details. A great tool for shooting sports, the camera also features Full 1080p HD video mode, a first for a Digital ELPH model. In addi- tion to its HD video func- tionality, the camera can also shoot in Dynamic IS mode. Canon U.S.a. InC.: 866-50-Canon (502-2666) Write 402 on reader inquiry fax card www.usa.canon.com/corporategifts 4 << ON THE GRILL The Huntington Rebel 612064 Grill provides you with a massive cooking surface and some of the most advanced features in the industry. Proudly made in America, this grill boasts a 40,000 BTU stainless steel tube burner system, 10,000 BTU stainless steel side burner, <

32 R JANUARY/FEBRUARY 2011 PREMIUM INCENTIVE PRODUCTS WWW.PIPMAG.COM 6 PHOTO OPP >> When it’s time to reward your team for hard work, loy- alty and support, nothing says “thank you” like a Nikon. Nikon’s compact and lightweight D3100 D-SLR features a high-resolution 14-megapixel CMOS DX sensor, high-quality 3x NIKKOR 18-55mm VR image stabilization zoom lens and intuitive onboard assistance including the learn- as-you-grow Guide Mode, delivering beautiful pic- tures and amazing Full HD 1080p movies with full-time autofocus. Easily capture the action other cameras miss with split-second shutter release, 3 frames per second shooting, 11-point autofocus and ISO range of 100 to 3200. nIkon: 888-547-8684 Write 405 on reader inquiry fax card rewards.nikonusa.com << APPLIANCE SUPPLY 7 Samsung, Frigidaire, Danby and others. From kitchen to laundry room, from spacious French Door refrigerators to large- capacity front-load washers and steam dryers. All are high-per- >> forming, time-saving and are loaded with easy-to-use features. 8 A HIGHER STANDARD And, PMC now brings these brands to the special markets chan- Vapor sets a new standard in hard- nel, complete with White Glove in-home delivery—the appliance sided cases with its superlative is placed in position, packaging removed and even the existing design, enhanced level of perform- appliance taken away. It doesn’t get easier than that. ance and added lightweight feature. pMC: 262-743-2095 A demonstration of Tumi’s excel- lence and leadership in design, Write 406 on reader inquiry fax card innovation and technology, the www.pmcusa.com ultra-modern ABS Polycarbonate Alloy collection has been developed for consumers who seek lightweight travel cases with the highest stan- dards of durability and perform- ance. Constructed from a high-per- formance advanced engineered 9 TOUCH AND GO >> triple layer ABS polycarbonate shell, The Bloggie™ Touch camera captures this material contributes to the Web-friendly HD MP4 videos and 12.8- superior strength, protection and megapixel images while featuring a durability, also allowing for maximum resistance to cold impact cracking. capacitive touch-screen for simple touch tUMI: 800-669-3181 and slide operation. Integrated software makes it easy to share videos and Write on reader inquiry fax card 408 images on Facebook® or YouTube®. www.tumispecialmarkets.com Record up to 4 hours of HD video on its 8GB of internal memory. Sony: 800-833-6302 Write 407 on reader inquiry fax card www.sony.com/motivation

10 << EVOCATIVE New from Steuben, the Mini Mobius was inspired by the symbol for infinity. For employees who’ve outper- 9 SURPRISE EMPLOYEES >> formed the rest and partners and customers who have Start off the New Year by leaving something sweet on your employee’s desk to earned some recognition, it will evoke a world of endless thank them for their hard work and dedication in 2010. Employees will enjoy possibility. Personalization is available. velvety chocolate and fascinating flavors in Godiva’s scrumptious pralines, SteUBen: 713-868-1986 buttery caramels, intense ganaches and sweet fruits. Gold Ballotins are avail- able in a variety of sizes to show your appreciation. Write 426 on reader inquiry fax card GodIva: 877-267-7847 www.steuben.com Write 409 on reader inquiry fax card www.godiva.com/business

WWW.PIPMAG.COM PREMIUM INCENTIVE PRODUCTS JANUARY/FEBRUARY 2011 R 33 >> the insider By Deborah L. Vence

Bouncing Back Trends in Incentive Industry Reveal Sure, but Slow Recovery

he incentive industry is showing signs of Measurement. chandise non-cash incentive programs award recovery, though slowly, as industry pro- “For example the IRF’s study, ‘Incentives selections, the 41 percent of respondents antici- T fessionals are optimistic about business Motivations and Workplace Performance,’ has the pating “increased use of debit/gift cards” as an for 2011, and have an even stronger confidence most extensive meta-analysis on academic incen- award selection represents an increase from what for business in 2012. tive research to date. It can provide a number of the IRF saw last winter and earlier in the spring. But, still, more needs to be done, experts say. supporting data points for almost every type of Last winter only 22 percent saw an increase. In “We were a little surprised to see how strongly program: short-term, long-term, quota-based, the spring of 2010 only 21 percent saw an some of the new trends we are tracking showed open-ended, etc.,” she said. “Equally important, increase. up in the numbers,” said Melissa Van Dyke, presi- however, is balancing this data with the emotional Meanwhile, the nation’s economic conditions dent of the Incentive Research Foundation, refer- or people side of the story.” continue to play a role in the budget process. The ring to the Pulse Survey: Incentive Industry Van Dyke added, “Having a continuous stream 22 percent of respondents who stated that the Trends for 2011 produced by the IRF. The survey of feedback from individual employees or chan- budgets for incentive travel programs in 2011 will queried 130 incentive providers and suppliers, as nel partners on the personal impact of programs be reduced represents a much better outcome than well as corporate incentive travel buyers online will go a long way to bring the data to life. The in the past. between Sept. 13, 2010, and Sept. 30, 2010, about good news is that today there a number of social “At this same time last year, over 50 percent of trends concerning incentive travel programs, mer- media tools that allow those of us in the industry respondents saw a decrease in travel budgets. chandise non-cash programs and budget changes to receive this type of feedback.” This spring, 33 percent saw some sort of forecast for 2011. Pulse Survey respondents—who were catego- decrease. Now we are down to 24 percent predict- Overall, the survey, which can be found at rized as providers (e.g., incentive company) (60.0 ing a decrease, with 20 percent only predicting a www.theirf.org, showed that the trends in the percent); corporate incentive travel buyers (16.2 slight decrease,” Van Dyke said. “This shows incentive industry have steadied, for the most percent); suppliers (11.5 percent); and other (12.3 some adjustments still taking place while the part, and continue to be on a positive upward percent)—also indicated that they believe the ‘new economy’ settles in, but, overall, it is better trend for each of the core issues since July 2009. economy would not have as negative of an effect than where we have been.” PIP “We knew CSR was a trend, but to learn that on their ability to plan and implement merchan- three-quarters of all respondents are receiving dise non-cash incentive programs compared with requests for Corporate Social Responsibility as a 2009. part of programs shows exactly how prominent it For one, the change in attitude by incentive is today,” Van Dyke said. “I also thought the providers and suppliers can be attributed, Van response on industry support was interesting. Dyke said, to the fact that the economy has begun ad index Only 11 percent of survey participants said they to stabilize. feel the industry is ‘doing enough to demonstrate “This allows executives in many industries to the business value of incentives.’ feel more comfortable with beginning longer BEST BUY COVER 4 “This means that we, in the industry associa- planning cycles and releasing previously frozen tions, need to continue and even step up our initiatives,” she said. BOSE CORPORATION COVER 3 efforts to provide information, education and In addition, salaries have not yet rebounded. tools on the value of incentives,” she said. “This has left some executives looking for alter- Many respondents (66 percent) indicated that native opportunities to encourage productivity CANON 9 more C-level support is needed, though, with and performance in the interim. The result is that regard to demonstrating the business value of many respondents are probably starting to see GODIVA CHOCOLATIER INC. 15 incentives—something that remains an issue in budgets open up,” she explained. “In industries the industry. Fifty-five percent of respondents that have not yet rebounded, the programs have INCENTIVE CONCEPTS 21 indicated that more case studies would assist in already been cut or reduced so dramatically that demonstrating the business value of incentives to providers do not plan on the economy having a MOVADO GROUP, INC. COVER 2 – 3 C-level executives; while 47 percent stated that major impact on these programs in the near testimonials would assist in demonstrating the term.” NIKON INC 5 business value of incentives. In another category, the use of social media as “Building the case to C-level executives takes elements of incentive programs garnered a 58 per- PMC 11 both quantitative and qualitative information. cent majority response, indicating that social From a quantitative perspective, most important- media is used “to communicate with participants SONY ELECTRONICS 7 ly, we can make use of the research and tools that prior to an incentive or recognition program.” are already available. I am always surprised at the Meanwhile, 36 percent indicated that they use number of industry professionals who are not social media to communicate with participants STEUBEN GLASS 19 aware of the data and education that organizations during an incentive and recognition program; like The Incentive Research Foundation, IMA or while 27 percent stated that they use social media TUMI CORP 17 the Forum have to offer,” Van Dyke said, refer- to communicate with participants after an incen- ring to the Incentive Marketing Association and tive or recognition program. Forum for People Performance Management and And regarding 2011 anticipated changes in mer-

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