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Top 12 Incentive Trends of 2012: What they Mean For

Your Business Motivation Show Session SM011 - Room W475b   

October 2012

Our Mission

• Advance the Science

• Increase the Awareness

• theIRF.org

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Today’s Topic

3

White Paper

Stats/Sources

Questions

#1: The Velocity of Change is Increasing4

Fall Session

Barrier to Growth

Pulse Studies

Highlights: Core Issues

5

Sep-0

8

Oct

-08

Mar-

09

Jul-09

Nov-

09

May-

10

Oct

-10

May-

11

Oct

-11

Mar-

12

Sep-1

2

30%

40%

50%

60%

70%

80%

90%

100%

84% 86%

75% 73%77%

81%

93%

74%

61%

68%74%

47%

64%

31%

40% 39%43%

64%

42% 41%44%

49%

45%

75%

63%

52%

61%64%

69%64%

49%44%

48%

0.546

0.617

The company financial forecast influences the design and implementation of incentive programs

Competitors’ reactions to programs impact the products and services included in company incentive programs

Perception of the Public significantly influences the design of our incentive program(s). *

Perception of internal (non-incentive) stakeholders significantly influences the design of our incentive program(s).

*Previously question was asked as; “Sensitive to perceptions of program extravagance to the extent that it would impact the type of company program awards and inclusions”

Perceived Impact of the Economy on Ability to Plan and Implement Incentive Travel Programs

6

In the coming year what impact will the economy have on your ability to plan and implement travel incentive programs? (N=151)

Mar-

09

Jul-09

Nov-

09

May-

10

Oct

-10

May-

11

Oct

-11

Mar-

12

Sep-1

2

4 2 3 310 9 6

0 0

4 6 5 85 10

49 5

3

1828

61 50 40

19

51

38

4

6

11

7

8 16

9

18

20

43

51

38

1722 21

55

22

3143

18 155 5 4 7

15

No Answer Strongly Positive Somewhat PositiveHave No Impact Somewhat Negative Strongly Negative

Perceived Impact of the Economy on Ability to Plan and Implement Merchandise Non-Cash Incentive Programs

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Do you anticipate budgets for merchandise non-cash incentive programs in the coming year to…(n=124)

Mar

ch-0

9

July-0

9

Nov

embe

r-09

May

-10

Octob

er-1

0

May

-11

Octob

er-1

1

Mar

ch-1

2

Septe

mbe

r-12

33 3320 15 13

3424

0 0

4 1

22 2

4

1

11 12

11 19

24 39 44

28

2442 38

1723

20

21 1920

2731

28

3119

27

23 2211

1816 20

5 5 70 2 3 6 1 2

No Answer Significantly Positive Slightly PositiveHave No Impact Slightly Negative Signficantly Negative

1. “Fast HR” = Growing need for Non-cash R&R

2. Shrinking planning cycles

3. Elevated decision-making

4. Increased focus on “agility” and “above and beyond”

5. Continued concern over “extravagance”

IMPLICATIONS

Velocity of Change

8Trend 1

Trend #2: Budgetary Pessimism [?]9

Anticipated Changes In Coming Year With Regards To Incentive Travel Accommodations

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Don't Know

Number of room upgrades increased

Total number of days/nights increased

On-site inclusions per participant increased

Total number of rooms increased

Number of room upgrades reduced

Change to "all inclusive" pricing options

Number of rooms reduced

Total number of days/nights reduced

On-site inclusions per participant decreased

No change

0% 5% 10% 15% 20% 25% 30%

1%5%5%

7%9%10%

12%18%

21%21%

27%

In the coming year, what changes, if any, will be made with regard to accommodations for incentive travel programs? Check all that apply.(n=151, multiple response)

Anticipated Changes This Year With Regards To Merchandise Non-cash Incentive Programs Award

Selections

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Decreased merchandise award value

No change

Decreased use of debit/prepaid gift cards

Added debit/prepaid gift cards

Included experience-related (SPA, event tickets, etc.) as an option

Added merchandise

Increased use of debit/prepaid gift cards

Included individual travel as an option

Increased merchandise award value

0% 10% 20% 30% 40%

13%

16%

17%

24%

27%

29%

31%

32%

36%

With regard to merchandise non-cash incentive programs, what changes,, will be made this year with award selections? Select all that apply. (n=75)

Anticipated Changes In Incentive Travel Program Budgets for This Year

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Significantly increase

Slightly increase

Remain unchanged

Slightly decrease

Significantly decrease

0% 10% 20% 30% 40% 50% 60%

1%

31%

48%

18%

3%

In the coming year, do you anticipate budgets for incentive travel programs in general to… (n=151)

Anticipated Changes In Non-Cash Incentive Program Budgets for This Year

13

Significantly increase

Slightly increase

Remain unchanged

Slightly decrease

Significantly decrease

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

5%

44%

41%

10%

0%

Do you anticipate budgets for non-cash incentive programs in the coming year to...(n=124)

Travel: Cutting back on gifts, shortening trips, Booking Off Season, Staying in North America Caribbean

Growing Use of Individual Travel

Growing Use of Gift Cards (50-60%)

IMPLICATIONS

Budgetary Pessimism

14Trend #2

Trend #3: Mobile is the New Static15

1.7B x 3

50% Adv.Users

10% natives

1/3 prefer Phone

Growing Preference of Mobile

10% Using – 35% Implementing

24/7 Access Is An Expectation

Gamification, QR Codes, Social media

Security Concerns

IMPLICATIONS

Mobile Uprising

Trend #317

Game Mechanics Are Everywhere18

2011 Tipping Point

70% have 1

50% Innov

Common Principles

NOT ABOUT SPIN & WIN Employees & consumers expect

technology to be engaging

Ensure skill level matches required performance

Games increase retention

36% incentive planners using gaming mechanics on website

Dell World Conference

Game Mechanics

IMPLICATIONS

Trend #419

Trend #5: Proof Positive20

Acceptance = Opportunity, not shoe in

Provide Research (see appendix) Map Implications Show ROI Ensure process is clear and transparent Speak their language

IMPLICATIONS

Proof Positive

Trend #5

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Trend #6: We’re All Marketers Now22

Growth in “Brand Alignment” and “Customer Service” Efforts

CMO’s must be aware of R&R Infrastructure

More Cross-Functional and Team Collaboration Efforts

IMPLICATIONS

We’re All Marketers Now

23Trend #6

Trend #7: Retention and Culture24

75%

50%

21%

5%

The Myth: Happy to Have a Job

Trend #7: Retention and Culture25

Management High Potentials

40%

25%

Who Are They

Negative Impact on Culture (59%)

Success of ‘Rewarder Organizations’ Generate 250% more Ideas

Importance of R&R for Efforts/Results

R&R for Collaboration/Teamwork

IMPLICATIONS

Retention Myth and a Culture of

Innovation

26Trend #7

Trend #8: We’re High Tech and Low Touch

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75% Allow Social Networks

Doubled over 55

Preferred Method

Collaborate

A

Social/Virtual Workplace & the Need for

Face to Face 

Virtual Distance makes business travel a valued luxury

Integrating Social Media Imperative

Face to Face Imperative for new teams and positive emotional climate

IMPLICATIONS

28Trend 8

Trend #9: Wellness Required29

Starbucks

#1 Spending

> 39 on infant, female, male mortality

25 by 25

75% treatable

Wellness programs return $3 for each $1 invested

R&R increases participation (a lot!)

Integrate Wellness and R&R programs

Include healthy lifestyles in travel programs

IMPLICATIONS

Wellness Required

30Trend #9

#10: Convergence and Integration is Common31

Technology Convergence – 30% Job Footprint – 2/3 Unpaid OT – Overemployed

Convergence of Jobs and Tools

Continued Tool Integration

Ensure you are aware of technical and role landscape

IMPLICATIONS

Convergence and Integration

32Trend #10

Trend #11: Globalization33

BRIC Growth (3B)

¼ economic activity is global

Symposium

GLOBALIZATION

Growing middle class (BRIC)Global companies need to align &

engage employees worldwideRequires local relevanceR&R need to reflect local cultureOne size does not fit all

Communications Legalities

IMPLICATIONS

34Trend #11

Trend #12: Corporate Social Responsibility35

Top 10 on Exec Agenda

2/3 don’t know how to make it relevant

48% of Planners

R&R needs to be “CSR sensitive”Digital vs paperEco-friendly travelSourcing of awardsEmployee participation voluntary

IMPLICATIONS

Sustainability

36Trend #12

Questions

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