Steve Timmerman, Co-Founder at Perks.com (http://Perks.com), joins us to discuss why points-based incentives work and how to turn points-based systems into your secret weapon for talent retention... Read the Transcript

Steve Timmerman Co-Founder Perks.com http://Perks.com

Mr. Timmerman is a co-founder of Perks.com and oversees all sales and marketing functions. He possesses 30-years of experience building businesses ranging from internet start-up to multi-billion dollar manufacturer. He was previously Vice President of Marketing for Electrolux, LLC were he oversaw management of the company’s 75 year-old brand for its’ legendary canister vacuum. He also oversaw the development of scores of sales incentive programs for the company’s 10,000 member sales force.

Some employees want more flexible schedules, others want cash rewards, while others want some kind of recognition.  In this article we explore how employers are looking at more customized incentive plans for their employees through a points-based system and how this could affect your employees’ motivations. Patti Fralix said, “Companies are struggling with the challenges of managing a more diverse workforce.” One solution, proposed by companies such as Perks, offers a points-based rewards system. Companies reward points based on performance, bonuses, recognition, and project specific awards. A points-based system may just be what today’s workforce requires to be happy and, most importantly, engaged. Employees can get anything from “simple household goods to state-of-the-art electronics.” and “time off, free gifts and/or experiences.” Today’s workforce changed in terms of what they are looking for in recognition and rewards and the points system takes this into account. However, the element of getting to know the employee and providing the right incentive could be lost and, along with it, the employee’s tenure. Another potential drawback is the valuation of points.  Employees know that for some items it takes a long time to accumulate enough points to receive something and that may factor into their initial reaction to the program proposition. Employees seek more customized solutions for their situations and needs. The points system can suggest a willingness not to get to know the employee and put thought into the gift but it does provide a way for human resource professionals to customize rewards when standard recognition programs have failed. To create advantage from the point-based incentives trend, consider the following. Points-based incentives keep multiple employee generations engaged. Points-based employee incentives can be easy to implement. Ensure that points-based incentives reward employees quickly. Of course, points-based employee incentives must be managed regularly and fairly. Lastly, points-based incentives do not excuse detached management. Points run the risk of feeling impersonal so make the effort to get to know your employees and what is important to them as they cash in and feel the love.