• EEA White Paper Links Engagement with Profitability
• Research Shows That Recognition Can Boost Revenue and Profits
• Why Your Incentive Program Will Outlast the Downturn

EEA White Paper Links Engagement with Profitability

According to a new report from the Enterprise Engagement Alliance (EEA), motivating workforces to improve performance can increase corporate profits – and boost the economy.  Entitled “The Economics of Engagement,” the report,written by Allen Schweyer of the Human Capital Institute, provides a comprehensive analysis of research in the emerging field of “Enterprise Engagement” and offers how-to information on recently developed benchmarking tools that can quantitatively measure the benefits of employee and customer engagement.

These measurement tools are critical to demonstrate the bottom-line impact of enterprise engagement, both to corporations and to the economy as a whole, using financial language that senior executives, investors and economists are accustomed to. Among other things, the report looks at:

• The cost of employee disengagement (i.e., the $350 billion lost annually in  productivity, accidents, theft and turnover);
  
  
• Evidence of the link between employee engagement and better performance, citing studies from Gallup, Towers Perrin, Sirota Consulting, and Watson Wyatt;
  
  
• Proof that the financial performance of companies improves when employee engagement is a priority;
  
  
• Case studies of companies such as IBM, Sears, and Costco which have benefited demonstrably from enterprise engagement.

“One of the most encouraging findings of this report is the revelation that vast reserves of overall performance potential are essentially hiding in plain sight,” says the EEA’s Bruce Bolger. “Engaging the people that companies deal with on a day-to-day basis – both internally and externally – in a comprehensive, compelling and connected way will create a result that is more than just the sum of its parts. As with any such investment, the return needs to be demonstrated to decision makers, and there’s a growing body of evidence in the engagement arena that does just that.”

For a downloadable copy of the EEA’s white paper on “The Economics of Engagement,” click here.

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Research Shows That Recognition Can Boost Revenue and Profits

In today’s economic environment, employees are often stressed out because they’re doing the jobs of several laid-off coworkers – or they’re worrying about their own futures. One way to relieve the stress is with an appropriate – and affordable – recognition and rewards program. A new white paper released by the Recognition Council of the Incentive Marketing Association shows companies using recognition and incentive programs are often rewarded with improved revenue, higher profits, or even survival, when competitors are closing their doors.

“The Time for Recognition and Rewards Programs Is Now” examines current research and demonstrates why employers should keep programs that recognize workers despite temptations to eliminate such programs as a way to reduce strained budgets. “Today’s buyouts, bailouts and bankruptcies have undermined the workforce stability already shaken by changing demographics, making employee engagement a critical factor not only for success, but also for a company’s very survival,” says Karen Renk, executive director of the Incentive Marketing Association. 

According to Renk, the paper provides evidence that:

• Companies with recognition and reward programs outperform their competition;
• Recognition and reward programs are compatible with Return on Investment (ROI);
• Customer satisfaction, employee loyalty and profitability are all tied to recognition.

The white paper concludes that today’s economic realities are churning the business environment and talent pool in ways heretofore unanticipated and that “recognized employees become the engaged employees who are measurably more productive.” For more information on the IMA’s Recognition Council, visit www.recognitioncouncil.org. For a copy of the white paper “The Time for Recognition and Rewards Programs Is Now,” click here.

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Why Your Incentive Program Will Outlast the Downturn

Economic conditions can have a serious impact on the incentive industry, and the latest economic downturn is no exception. But a recent white paper, “Why Incentive Programs Endure Recessions” from the Incentive Performance Center (IPC), reviews past Incentive Federation studies and argues that there’s little evidence of a significant negative impact to the industry resulting from past downturns.

There is some impact in the early phases of a recession as companies cut back and fewer participants qualify for rewards, but business generally rebounds swiftly as companies turn to measurable, cost-effective programs to meet sales and marketing goals. The IPC white paper looks at why incentive programs often thrive during times of economic stress, and in particular, why smart companies will continue to use incentive companies to drive business even while cutting budgets in other areas.

Specifically, this study makes the argument that there are five basic reasons to continue to use incentive programs during a downturn. These include:

• Low fixed costs, with variable costs driven by performance – and a high potential return.
• The ability to reach target audiences effectively.
• The relative ease of measurement of incentive program outcomes.
• Flexibility.
• The potential for both short- and long-term results.

The IPC warns that success is not guaranteed, and that companies should seek competent professional help to help ensure that their incentive plans will be successful. For a copy of the white paper, click here, or visit the IPC website at www.incentivecentral.org.

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