The power of experience on employee reward and recognition

Maintaining a strong company culture and strengthening employee engagement has become a priority for business leaders across every sector. As such, recognition has an undeniable effect on a business’s performance and profitability. 

According to research, only 51% of workers are satisfied with the rewards and recognition they receive at work. But when approaches such as monetary incentives and social recognition are not resonating with employees, the next best option is to opt for experiential rewards.  

It is no surprise that experience-based, non-cash rewards have now become a popular employee recognition tactic. Experience-based incentives have an enormous impact on our psyche and emotions. Incentive travel programmes, for example, are typically designed around once-in-a-lifetime experiences that create memories that will leave employees extremely satisfied and hungry for more!  

So, let’s evaluate the importance of experience when it comes to employee reward and recognition.  

The power of experience

As we mentioned in our previous blog, ‘Incentive travel: the secret weapon of reward and recognition,’ research has proved that non-monetary rewards are more effective at improving performance than monetary benefits. Financial incentives are a great motivator, but they are also very impersonal and less memorable.  

Using experiential rewards can motivate the team, make them feel valued, and show them gratitude for their excellent work and efforts, especially after such a challenging time. Furthermore, ensuring that employees remain motivated is critical for boosting performance, fostering ‘healthy competition,’ creating a culture of loyalty and increasing retention levels.  

In 1998, J. Pine and J. Gilmore introduced the idea of ‘Experience Economy,’ a concept that is still very relevant in contemporary society, as it represents experience as the repository of value. In the wake of the Covid-19 pandemic, organisations must reimagine their businesses and workplace cultures through the lens of experience, and there is no better example than incentive travel.  

When talking about incentives, people want to live something new and unique, which they cannot get elsewhere.  

Choosing the right ‘paradisiacal’ destination is the first step. Whether it is an exotic tropical island or an exciting, dreamy ‘Antarctic’ adventure, employees want to live memorable experiences and share precious moments with colleagues, partners, and even family.  
Employees feel rewarded and recognised when a business invests and organises incentive travel programmes solely for the benefit of their team. From a company perspective, this affects significantly the workers' mental well-being and the workplace culture, which breeds positivity and increases productivity.  

Despite Covid-19, the latest Incentive Travel Index shows that companies are still willing to invest in incentive travel, now more than ever. Furthermore, according to the IRF 2021 report, 80% of the employees surveyed said that a group travel experience is “extremely motivating” or “very motivating,” signifying the importance of incentive travel as a reward and motivational tool.  

There have been some changes, of course, compared to the pre-pandemic era, with risk mitigation, destination selection, safety factors, and overall destination appeal now a top priority for corporations planning incentive programmes. However, years of restrictions and bans have sharpened our appreciation for travel.  

The IRF report also showed that the top four factors that can make an incentive trip highly desirable are:  

• The ability to bring a friend or spouse along  

• The destination appeal  

• All expenses covered  

• Luxury, five-star accommodations and experiences  

So, future incentive programmes will look more at personalisation, small details, and smaller gatherings. Instead of creating incentive travel programmes targeted at larger groups, companies will incentivise more at an individual level. This allows the opportunity to share these experiences with family and friends – such incentives are likely to be regarded as more valuable in the coming months.  

Business meetings and incentive travel

How about blending business meetings with an incentive travel programme?  

The IRF found that company culture plays a significant role in the perception and efficacy of meetings during incentive programmes.  

First, meetings need to be worthwhile to the participants. The content needs to be insightful, engaging and it needs to have actual value for the guests. As reported in the IRF study, ‘if a top performer has worked all year to earn a five-star trip to Hawaii, the meeting should be at least as compelling to her/him as spending that time with her/his guest doing something fun. 

Working extensively on the schedule and programmes available is also essential, as filling the day with countless business meetings will not positively impact the participants' experience. In other words, avoid minimising the opportunity for fun and relaxation.  

As previously mentioned, employees admit that they work harder when they feel appreciated, and a strong culture of recognition is present within their organisation. When people feel valued and cared for, they work with great motivation and a more profound sense of purpose and engagement.  

If you want to know more about incentive travel and its impact on motivating your employees, contact us now!