9 Reasons Why Incentive Travel Offers Long-Term ROI for Your Company
Incentive trips have been used by companies for decades because they are tried and true motivators for performance. In fact, 96% of employees say they are motivated by travel incentives, according to a study by Site International Foundation and the Incentive Travel Council. Incentive travel can help motivate and inspire your staff or partners to reach desired business goals or outcomes, such as improving performance, increasing productivity, boosting sales or hitting targets. However, incentive travel can also provide a myriad of other benefits as well. Keep reading to see all the reasons why incentive travel offers long-term ROI for your company.
Employees Feel Valued
Incentive trips provide an opportunity for positive reinforcement. Studies show positive reinforcement is one of the best ways to motivate a team and produce outstanding results. Inviting top performers to participate in an incentive trip sends the message that their efforts are appreciated and that they are valued by the company. A 10-year, 200,000 person study of Managers and Employees found that in response to the question “My organization recognizes excellence,” the organizations that scored in the lowest 25% had an average Return on Equity of 2.4%, whereas those that scored in the top 25% had an average ROE three times higher. In other words, companies that most effectively recognize excellence enjoy greater profitability.
Employee Retention:
Every year U.S. businesses lose an estimated $11 billion in revenue due to employee turnover, according to recent figures. 79% of people who quit their jobs cite “lack of appreciation” as a key reason for leaving, according to the aforementioned 10-year study of Managers and Employees. Incentive travel programs may help reduce that statistic. A report from Society for Human Resources Management found that firms with “strategic recognition programs” (such as incentive travel) have significant advantages in engagement, retention and performance (SHRM/Globoforce, 2012). Showing employees that they are valued by their company and giving them experiential rewards to look forward to leads to greater workplace satisfaction. When you consider that the average cost to fill a position ranges from $3,000 to $18,000, spending money on incentive trips to reward your employees and retain top talent seems like a no-brainer.
Company Loyalty
When employees see that their company acknowledges and respects their efforts, they take greater pride in the relationship and become more loyal and dedicated to the organization. In fact, 72% of employees who earn a travel incentive reward say they feel increased loyalty to the company, according to a study by Site International Foundation and the Incentive Travel Council. Loyal employees will serve as ambassadors for your brand and will generally try their best to make sure that the company succeeds.
The “Reciprocity Effect”
Cash tends to be viewed by recipients as transactional, whereas non-cash rewards feel like gifts and are more social in nature, according to analysis by the Incentive Research Foundation discussing a 2017 experiment by Professor Khim Kelly. Well-selected tangible, non-cash rewards trigger appreciation, leading to a greater desire to reciprocate the gift because the recipient believes that more thought was put into choosing something they would enjoy (Kelly, 2017). As Professor Kelly attests, when employees associate an emotionally impactful reward with the firm they received it from, they are grateful and seek ways to reciprocate.
Lasting Memories
Incentive trips give employees a memorable experience. Equivalent cash gifts, which are often spent on dull items or paying down debt, lack the same sentimental link. Employees are also less likely to talk about a cash reward with their coworkers, because it’s not considered appropriate. However, it’s the exact opposite when it comes to receiving an incentive trip. Employees are excited to share the details and share their enthusiasm for how their company has made them feel appreciated. When your employee returns from an incentive trip, they will be likely to recount their amazing experience with colleagues and friends for months or years to come. This makes them valuable advocates for your company and will help motivate other team members to work towards future rewards.
Good for Well-Being
Incentive travel can also provide personal wellness benefits to employees. Employees that are rewarded with an incentive trip often experience reduced stress, increased creativity, and boosted confidence. This not only benefits the individual, but also your company, because your team members will return to work feeling re-energized and ready to reach their next goals. Speaking of well-being, when asked about “inclusions” in incentive travel programs, 86% of buyers highlighted incorporating wellness (yoga, healthy meals etc.), according to a joint study and survey of the global incentive travel industry by The Society for Incentive Travel Excellence (SITE), Incentive Research Foundation (IRF), and Financial and Insurance Conference Professionals (FICP).
Promotes Team Building Among Employees
When an incentive trip is done as a group, it provides a great opportunity for team building and camaraderie. Employees will enjoy special experiences and meals together, providing them with ways to relate to one another on a more personal level. When they return to the office, the team will typically have a stronger bond, which makes for a better workplace environment and increases their collaborative efforts. Building a positive company culture also plays a major role in retaining employees. On a scale of 1 to 10, millennials rate the importance of work culture at 8.5, according to Thruue Inc. Since more companies are now allowing people to work remotely, incentive travel also provides an opportunity for teams to meet up with colleagues a few times a year for some much-needed bonding and team building.
Establishes Benchmarks for Productivity
We’ve already discussed how incentive travel can help motivate your employees or partners to reach desired business goals or outcomes. It can also help your company establish benchmarks and identify best practices. For example, if Jill sells ten items a month and Jack only sells six, then Jill will get to go on the incentive trip. But now management knows that selling ten items a month is an achievable goal, so they can identify Jill’s best practices and help Jack bring his sales up.
Tailorable to Suit Your Budget
Incentive travel can be a great option for any size company because trips can be tailored to suit your budget. We’ve established the benefit of a trip vs. cash and with that, we will review your budget and make recommendations based on trip location and length. Incentive trips can range from a weekend getaway domestically, to an international trip. Incentive travel can also be tiered to reward different levels of achievement. This can make it more affordable for the company and more personal for the employee.
The Bottom Line: Incentive Travel is Worth the Investment
At a time in which companies have to compete for talent and profits more than ever before, incentive travel programs are a worthy investment on all fronts. Incentive trips help you achieve organizational goals and offer a strong return on investment, while boosting employee morale and retaining top talent. Companies should strive to not only keep top talent but to attract the best in the business as well. Design a culture that promotes employee well-being and you will set yourself apart from the competition.
How We Can Help: Incentive Travel Planning Services
Contenta Meetings & Events offers concierge-style incentive travel planning services. From the initial intake through program conclusion, we will work as strategic partners every step of the way. Our incentive trips will thrill, engage and inspire your employees and boost long-term ROI for your company. Contact us today to learn more!
