A large number of companies are going beyond the traditional compensation models to enhance the levels of engagement and productivity among its employees. Recent reports by McKinsey indicate that there is a strong bias towards non-cash rewards to motivate employees as these are considered to be more effective than financial incentives such as ESOPs, cash bonuses and annual increments.
Take a look at these three arguments in favor of how incentive trips create a positive impact on organizational productivity according to U.S. Travel Association stats:
$1spent on incentive travel converts into a benefit of $12.50revenue and $3.80profits
A similar effect is produced if companies increase the total base compensation of employees by 8.5%
Non-cash rewards are 2-3 times more effective than cash rewards.
So, what do these figures tell us? That, incentive trips are not a but here-to-stay trend with clear impact on improving productivity in organizations. Incentive trips are becoming a very effective motivational and performance improvement strategic tool among the companies of today. Both large corporations as well as SMEs are interested in offering incentive trips to their high performing employees.
Incentive trips are useful in brining a change in behavior of the employees because travel seeks attention of almost every individual in the current times. There is a growing desire to see the world and experience different cultures, especially among the millennial generation.
More and more businesses are using incentive trips to help them fuel sales, improve productivity, achieve better customer loyalty, reduce employee turnover, build stronger employer brand and promote collaboration and team bonding.
Almost all business sectors are making use of incentive trips as a strategic motivational tool to close the productivity gap. In the research paper The Anatomy of a Successful Incentive Travel Program? published by Incentive Research Foundation, researchers demonstrated that the well-rewarded employees perform better and stay longer with their companies as compared to their peers.In the same research paper, following definition of Incentive Travel Programs was provided:
“Incentive Travel Programs are a motivational tool to enhance productivity or achieve business objectives in which participants earn the reward based on a specific level of achievement set forth by management. Earners are rewarded with a trip and the program is designed to recognize earners for their achievements.”
We have incentive travel experts who know how to create programs that are aligned to the business objectives. By leveraging the global best practices and ideas in incentive travel program, we design customized programs for our clients. We work along with our customers to effectively execute each program. At IPC, we strongly believe no one size fits all and realize that each organization is unique and it is not easy to motivate the employee groups with different demographics. Some may value a relaxing trip, others want to be pampered and then there are those who want unique experiences. Our incentive trips drive not just the metrics but also help promote the company’s culture and team building.