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#CultureCode The little red book of answers for HR managers

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#CultureCode The little red book of answers for HR managers

  1. 1. the little book of answers creating happy people 1 Third Edition
  2. 2. 2 Happy People = Happy Prof its
  3. 3. creating happy people 3
  4. 4. 4 new and updated with bonus content RedBalloon Australia corporate.redballoon.com.au Tel 1300 850 940 Fax +612 9566 4887 query@redballoon.com.au New Zealand corporate.redballoon.co.nz Tel 0800 555 029 Fax 0800 555 024 query@redballoon.co.nz © 2009 RedBalloon. All rights reserved.
  5. 5. 5 finding your answers To help you find the answer you’re looking for we’ve grouped the most common questions we get asked into sections for quick reference. Sections Page About RedBalloon 6 Why do we have the answers? 8 Creating happy people 10 The power of employee engagement 18 Creating motivated and productive staff 28 Rewards and recognition NEW 34 Workplace fun NEW 42 Creating cohesive teams 48 Managing generations at work 54 Building an employer brand 60 Improving sales performance NEW 68 How will RedBalloon get you results? 78
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  7. 7. 7 about RedBalloon RedBalloon is the leading online gift retailer for experiences in Australia and New Zealand. We ‘package up pleasure’, giving people a good time by allowing them to experience something they’ve always wanted to do, like an overnight romantic retreat for two, shark diving or a jet fighter flight. With more than 2500 RedBalloon Day experiences in our range, we are passionate about giving pleasure and ultimately impacting organisations large and small. And, we’re committed to changing gifting in Australia forever. Naomi Simson CEO (Chief Experience Officer), RedBalloon Pty Ltd National Telstra Business Woman 2008 (Innovation) naomisimson.com
  8. 8. 8 why do we have the answers? Over the past eight years we have sent Australians and New Zealanders on more than 500,000 amazing experiences and have been asked a lot of questions along the way, ranging from ‘How can I get people to change their actions?’ to ‘What do disengaged employees really cost my business?’ Having worked with more than 1,400 companies, from large blue chips to small owner operators, we understand how trends are evolving in the workplace, how employees like to be treated, the effectiveness of incentives and the importance of building an ‘employer brand’. Every organisation is different and our experience enables us to develop a unique solution that embraces technology and includes the essential ingredient – FUN!
  9. 9. 9 As recognition and engagement specialists we practice what we preach, and in October 2008 RedBalloon were awarded an independent employee engagement score of 97% by Hewitt Associates. With the average for Australian businesses at 54%, it is our mission to help other organisations to motivate, reward and engage. Quite simply, happy people = happy customers = happy prof i ts The ‘Little Red Book of Answers’ contains some gems, both from our own experience and research as well as from the experiences of other organisations. This book will successfully help you identify, plan and develop strategies for your organisation, whether you are looking to engage staff, incentivise distributors or ‘woo’ clients. All resulting in Happy Profits!
  10. 10. 10 creating happy people It is true; happy staff will create an environment for happy customers and ultimately that means great profits. So what makes for happy staff and how do you keep them happy? We get asked questions on this subject more than any other, and so over the next few pages we’ll share the answers with you.
  11. 11. 11 “The motto of successful CEOs: People First, strategy second” Ram Charan, Author of Boards at Work
  12. 12. 12 Q1 What does today’s workplace look like? “There is a melding between the work week and the weekend. When we are asking so much of our people, work needs to be far more fulfilling to keep them engaged and focused.” Naomi Simson, CEO, RedBalloon Q2 What are employees looking for? “We all want ‘A Graders’ working in our business. We want people who are focused and are prepared to give their discretionary effort. No matter the economic climate, there is a finite number of great people and we want them working harmoniously and productively for us.” Naomi Simson, CEO, RedBalloon Q3 Why do people leave an organisation? One in three people leave an organisation because they feel that they are simply not recognised. Research by Success Corner Pty Ltd. www.successcorner.com.au
  13. 13. Q4 What does management have to do with happy staff? For six consecutive years ‘stress level’, ‘quality of management’ and ‘lack of feedback and appreciation’ are the aspects of a job that Australians hate the most. Seek intelligence: 2008 survey of employee satisfaction and motivation in Australia. www.seek.com.au If your relationship with your manager is fractured, then no amount of in-chair massaging or company sponsored dog walking will persuade you to stay and perform. It is better to work for a great manager in an old fashioned company than for a terrible manager in a company offering an enlightened, employee-focused creating happy people 13 culture. Buckingham, M & Coffman C. (2005) First Break All the Rules. Pocket Books Q5 Can managers make or break relationships? A 25-year-long Gallup Organisation study based on interviews with 12 million workers at 7,000 companies found that the relationship with a manager largely determines the length of an employee’s stay. Kaye, B & Jordan-Evans, S. (2005) Love ‘Em or Lose Em. Berrett Koehler.
  14. 14. 14 Q6 Why does staff loyalty have nothing to do with money? “Good news for businesses is that in most cases, staff loyalty in business has nothing to do with money…If you don’t capture the hearts and minds of an employee, no amount of money will keep them long-term.” Denis Orme – CEO, Insurance Brokers of New Zealand Robert Half Finance & Accounting (Aug 2005). Retain Staff Without More Cash. Sourced Aug 2005 from xtramsn.co.nz Q7 What does a great place to work look like? Combining the survey of 20,000 employees with the analysis of HR practices and CEO interviews has resulted in the development of the Anatomy of a Great Workplace© model. Great workplaces come in all shapes and sizes, however they share four characteristics: • They are values-based organisations with a very clear vision of the future • They have created a sense of community, where people feel a strong sense of belonging and optimism in the future • They have development strategies to help realise their full potential • They have created a performance culture where high standards of performance are set, and demanded John Robertson Associates (November 2008) Unlimited Best Places to Work in New Zealand Survey
  15. 15. Q8 How does a downturn in the economic climate effect employees? With a slowing economy and uncertainty, employees are looking for greater job security with 55% ‘keeping their eyes open for other options’. They expect that finding a job will take significantly longer, and in order to stay need to be rewarded for individual performance. Seek intelligence: 2008 Survey of Employee Satisfaction and Motivation in Australia. www.seek.com.au Q9 How important is work-life balance? In Australia and New Zealand 1 in 2 people are not satisfied with their work-life balance, yet 99% of us deem it as ‘crucial’ to our employment. Excessive workload was cited as the main reason for work-life imbalance. RedBalloon Pleasure Survey ‘Work-life Balance’ (Nov 2008) From 2,714 respondents www.corporate.redballoon.com.au/go/knowledge-bank/surveys Q10 What can employers do to make it easier to achieve work-life balance? Flexible working conditions would make the biggest difference (27%) to enable us to achieve work-life balance. Working from home, coming in early and leaving early, as well as days in lieu are other ways companies can allow their employees greater flexibility. RedBalloon Pleasure Survey ‘Work-life Balance’ (Nov 2008) From 2,714 respondents www.corporate.redballoon.com.au/go/knowledge-bank/surveys creating happy people 15
  16. 16. 16 Q11 What impact can stress have on employees? Australians take on average 8.62 days of sick leave/personal leave each year, costing the economy about $26.6 billion per annum in lost productivity ($3,017 per employee). The survey also found that more than 63 per cent of employers indicated that absence through increased stress levels is increasing, and the main reason for this is workload and organisational change. 2008 Absence Management Survey, Direct Health Solutions, www.dhs.net.au Q12 Do happy employees mean increased profits? “The companies that look after their people are the companies that do really well. I’m sure we’d like a few other attributes, but that would be the most important one.” Sir Richard Branson “Evidence shows customers report higher levels of satisfaction when employees report higher levels of job satisfaction. This has been called the “satisfaction mirror” implying that customers mirror the satisfaction that employees experience. “ Macey, W and Schneider, B. Employee Experiences and Customer Satisfaction. Sourced from customersat.com December 2008
  17. 17. Stock prices of companies with high morale outperformed similar companies in the same industries by more than two to one in 2004. The research found that companies with low morale lagged behind their industry competitors by almost five to one. The global study focused on 28 publicly traded companies with a total of more than 920,000 employees. Stock prices of these companies were compared to the industry average for more than 6,000 other companies in the same industries. It found that high-morale companies provide the three main things that matter most to employees: fair treatment; a sense of achievement in their work and pride in their employer; and good, productive relationships with other employees. High morale accompanies high stock. (2004) Sirota Consulting LLC, www.sirota.com creating happy people 17
  18. 18. 18 “Engaged employees are enthusiastic and psychologically committed to their work” The Gallup Organisation
  19. 19. 19 the power of employee engagement Since gaining popularity from when it first emerged in 1999, ‘Employee Engagement’ has become the new holy grail for corporate success – the term reflecting the commitment that employers are now prepared to make to keep their best employees. To achieve employee engagement, the level of commitment from the employer and employee has to be equal. It is shaped by a number of factors including the role itself, the quality of work relationships and perceptions of the ethos and values of the organisation. It comes back to the one word – ‘purpose’.
  20. 20. 20 Q13 What does an ‘Engaged Employee’ look like? Engaged Employees work with passion and feel a profound connection to their company. They drive innovation and move the organisation forward. Engaged Employees made up only 18% of the Australian workforce and 25% of the New Zealand workforce. The Gallup Organisation (Australia - Q12 Poll Nov 2008/NZ 2006), www.gallup.com Q14 What does a ‘Not-Engaged Employee’ look like? Not-Engaged Employees are essentially “checked-out”. They’re sleepwalking through their workday, putting time – but not energy or passion – into their work. Not Engaged Employees made up 61% of the Australian workforce and 64% of the New Zealand workforce. The Gallup Organisation (Australia - Q12 Poll Nov 2008/NZ 2006), www.gallup.com Q15 What does an ‘Actively Disengaged Employee’ look like? Actively Disengaged Employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers undermine what their engaged co-workers accomplish. Actively Disengaged Employees made up 21% of the Australian workforce and 11% of the New Zealand workforce. The Gallup Organisation (Australia - Q12 Poll Nov 2008/NZ 2006), www.gallup.com
  21. 21. Q16 How much does having Disengaged Employees cost businesses? Disengaged employees are more likely to leave and take less pride in their workplace. They are also less likely to be advocates of their workplace or the products and services they represent. This obviously comes at a significant cost to Australian businesses. In fact the Gallup Organization estimates that actively disengaged employees cost Australian businesses between AUS $33.5-$42.1 billion per annum and New Zealand businesses around NZ $5.6-$5.96b billion per annum. The Gallup Organisation (Q12 Poll Nov 2008), www.gallup.com Q17 What are the ‘key drivers’ of employee engagement? There are four contributors to employee engagement. All need to work in harmony to create a powerful relationship with employees. • Career aspirations – personally rewarding or major achievement • Career opportunities – sees future opportunity, growth and advancement • Recognition – perceptions of favourable acknowledgement from others for their work/accomplishments • Brand – consistency between the promise an organisation makes to its employees about working at that organisation and the work experience Hewitt Best Employers in ANZ Study 2008, www.hewittassociates.com power of employee engagement 21
  22. 22. 22 Q18 What are the main requirements for employee engagement? According to the Hays Group, there are four requirements for engagement: 1. Confidence in the organisation’s leaders 2. Collaboration and collegiality (positivity) 3. Development opportunities 4. Clear and promising sense of purpose The Hays Group 2008, www.hayscompanies.com Q19 How can employee engagement impact the bottom line? Companies that raise employee satisfaction by 20% will increase their financial performance by more than 42%. Global Study by David Maister, Practice What You Preach: What Managers Must Do to Create a High Achievement Culture (2001). Sourced from www.vault.com December 2008 A detailed study of 40 global companies found that firms with the highest percentage of engaged employees collectively increased operating income 19% and earnings per share 28% year-to-year. Those companies with the lowest percentage of engaged employees showed year-to-year declines of 33% in operating income and 11% in earnings per share. Towers Perrin Global Workforce Study. Sourced from www.humanresourcesmagazine.com.au December 2008
  23. 23. Q20 What impact can engagement have on innovation and customer service? Almost 9 in 10 engaged employees strongly agreed that they have grown in their ability to positively affect their company’s customers, while only 2 in 10 actively disengaged employees strongly agreed. Engaged employees are far more likely to suggest or develop creative ways to improve management or business processes. They’re also far more likely to find creative ways to solve customer problems or to involve their customers in creating service innovations. Gallup Management Journal Study, October 2006. Sourced from www.gallup.com December 2008 “When people performance management is the primary focus in an organisation, competitive advantage becomes human capital management: employees become partners not expenses, and compensation and incentives become total rewards management. The reward is a connection between employee engagement, customer loyalty and profitability.” Mulhern, F. Professor of Integrated Marketing Communications, North Western University, Illinois. Sourced from Motivation Magazine December 2008 power of employee engagement 23
  24. 24. 24 Q21 How can managers affect employee engagement? Hays Group research shows that 70% of engagement is determined by the employee’s direct manager. The Hays Group, www.hayscompanies.com (2008) Many managers claim no responsibility for employee engagement and retention. They believe retention is largely about money, perks and benefits – areas where they have little control. We know that is not true. In addition to fair pay, people want: • Challenging, meaningful work • A chance to learn and grow • Great co-workers • Recognition and respect • A good boss Kaye, B & Jordan-Evans, S. 2005. Love ‘Em or Lose Em. Berrett Koehler. Q22 Does higher pay guarantee greater engagement and happiness? “Increases in our stocks of material goods produce virtually no measurable gains in our psychological or physical well-being. Bigger houses and faster cars, it seems, don’t make us any happier.” Frank, R. (1999) Luxury Fever: Why money fails to satisfy in an era of excess “Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.“ Benjamin Franklin
  25. 25. “I don’t care too much for money, because money can’t buy me love.” Lyrics by Paul McCartney/John Lennon, “Can’t Buy Me Love”, A Hard Days Night album, March 1964 Q23 What effect can engagement have on productivity? “Engagement not only increases the speed and quality of execution, but also nurtures an environment in which employees are willing to reach outside of their silos and create better business processes. This motivation leads to more efficient, productive business processes.” Gebauer, J. (2005), Building the Global Village, Synnovation: Quarterly Journal of the EDS Agility Alliance, Vol 1. Issue 2. Sourced from Roadmap to Success: Driving Bottom Line Results with People Performance, Success Factors, December 2008 Q24 Does engagement help increase employee retention? ”Engagement has a direct impact on retaining employees. Half of the engaged employees had no plans to leave their company, compared with just 15% of the disengaged – and roughly a third of the workforce overall. Less than 5% of engaged employees said they were actively looking for another job compared with more than one in four of the disengaged employees.“ Towers Perrin Global Workforce Study. Sourced from www.humanresourcesmagazine.com.au, December 2008 power of employee engagement 25
  26. 26. 26 Q25 What are some more reasons why employee engagement matters? • Engaged employees average 27% less absenteeism than those that are actively disengaged • Engaged employees deliver greater customer service (12% higher customer scores) • Teams that are more engaged are more than twice as likely to succeed…. Averaging 18% higher productivity and 12% higher profitability Wagner, R & Harter, J. 12 The Elements of Great Managing (2008) Gallup Press Q26 Why should employee engagement be a strategic priority? Research conducted by Gallup proves that engaged employees are more profitable, more customer-focused, safer, and more likely to withstand temptations to leave. Engaged employees deliver: • 27% higher profits • 50% higher sales • 50% higher customer loyalty • 38% above average productivity Who says cash is king?, Globoforce.com, June 2008
  27. 27. Q27 Can effective communications engage employees and increase profit? A significant improvement in communication effectiveness is associated with a 30% increase in market value. Companies with the highest levels of ‘effective communication’ experienced a 26% total return to shareholders from 1998 to 2002, compared to a -15% return for firms that communicate least effectively. A Watson Wyatt Study, Connecting Organisational Communication to Financial Performance. Sourced from Towersperrin.com October 2007 Q28 What are the characteristics that make a company a “Best Employer”? The 5 key characteristics that make a company a ‘Best Employer’: 1. An effective and committed leadership team 2. Compelling promise to employees 3. Aligned people practices 4. Connection to the company strategy 5. Differentiated high perfomance culture Hewitt Associates, Best Employer Study 2008, www.hewittassociates.com “Our employees are most important for us. When they are happy, the guests are happy. First, we respect every employee. We care for them as part of a family and provide a very positive work environment. We empower our staff to take any decisions they think are needed to please guests. Finally, we make sure we are transparent. We stay in close touch with the staff. Every once or twice a month, I hold what I call town hall meetings which are open to all staff. And we listen to their suggestions.” Jean V. Mestriner, GM of The Ritz-Carlton, Millenia in Singapore power of employee engagement 27
  28. 28. 28 creating motivated and productive staff If you want your organisation to be successful, then you’ll want to align everyone behind the same vision and overall goal. Salaries and compensation packages are taken as a given these days. What else can you do to encourage excitement or engender a spirit of ‘celebration’ in your organisation to ensure that every day your employees come to work wanting to work hard and take pleasure in all they do? Over the next few pages we answer questions on increasing motivation and productivity in the workplace.
  29. 29. 29 “Pleasure in the job puts perfection in the work” Aristotle
  30. 30. 30 Q29 What inspires people? “In short, other people inspire people! They are inspired in such a way that makes them want a piece of what someone else is having. This is because it creates a sense of relatedness and connectedness. It is the power of one person telling another – this creates desire.” Gladwell, M. The Tipping Point: How Little Things Can Make a Big Difference. (2002) Abacus Q30 What are the key factors that motivate staff? The ‘Leadership and Employment and Direction Survey’ compiled by Leadership Management Australia, found the top five factors that will positively influence employees are: • Being entrusted with responsibility/independence • Interesting and challenging work • A good working relationship • Receiving feedback and good communication • Enjoying a good relationship with other staff “As the leadership team goes - so goes the rest of the organisation.” Verne Harnish, Author Mastering the Rockefeller Habits (2006) SelectBooks “People want to connect to something bigger than themselves. They want to know how they contribute to the bigger picture, what difference they made, what their score card was and were they recognised for it.” Naomi Simson, CEO, RedBalloon
  31. 31. Q31 Why do people need incentives? Isn’t their salary and employment package enough? “It’s never about the money – it’s about their hearts and minds. While financial rewards tend to receive the greatest focus, non-monetary rewards are used to support a performance-driven culture. Just over half of the participants surveyed said that their current employer uses non-monetary recognition as part of its reward program.” Denis Orme – CEO, Insurance Brokers of New Zealand Robert Half Finance & Accounting, (2005). Retain Staff Without More Cash. Sourced August 2005 from xtramsn.co.nz Q32 Why is cash not an effective incentive? Cash has its place, but it is not as effective when it comes to recognising people. Quite simply, it is not memorable. 72% of people said that, if given cash rewards, they disappear on bills, taxes and necessaries. 70% said that cash begins to become expected and therefore is confused with compensation. RedBalloon Winter 2004 Pleasure Survey. www.redballoon.com.au/go/pleasure “Recent research showed that those working for a cash incentive boosted their performance by 14.6% over those who did not receive any incentive for performance… Those who were working toward a non-cash incentive improved by 38.6% relative to the no-incentive condition… For the same amount of money, a non-cash incentive created more than twice the performance improvement.” University of Chicago study (2004) Sourced from Who Says Cash is King whitepaper, Globoforce.com November 2008 creating motivated and productive staff 31
  32. 32. 32 Q33 Why do experiences ‘work’ as incentives? “Experiential purchases or life experiences make people happier than material purchases. The initial thrill of a possession wears off quickly, but memories last forever. A person’s life is the sum of their experiences, not their goods. Experiences have greater social value in their connectivity.” Gilovich T, Cornell University & Van Boven, L, University of Colorado (2003) US Journal of Personality and Social Psychology “The cycle of materialistic pursuits is exhausting in the long run and can make people perpetually unhappy.” Professor Robert Arkin, Ohio State University Q34 What would people work harder for? People would work harder if they were recognised for doing so. It comes back to how important people feel their contribution is, are they noticed and is there a shared experience of achievement. People need to have a sense of related validation - ‘I feel great about what I do, I make a difference and others know about it’. “The most consistently profitable divisions have people doing what they like to do, with people they like, with a strong sense of psychological ownership for the outcome of their work.” Coffman C & Harter, J. A Hard Look at Soft Numbers (1999) The Gallup Organisation
  33. 33. creating motivated and productive staff 33
  34. 34. “There is more hunger for love and appreciation in this world than for bread” 34 Mother Teresa
  35. 35. 35 rewards and recognition Gone are the days when managers only gave their staff a pat on the back and a couple of movie tickets for a job well done. Over the next few pages we’ll highlight the importance of formal reward and recognition programs and provide insight into what types of rewards work best, what makes a program effective and ultimately what impact they have to employees and organisation success.
  36. 36. 36 Q35 What is it that makes people crave praise and recognition? “At a purely chemical level every experience humans find enjoyable – whether listening to music, embracing a lover or eating chocolate – amounts to little more than an explosion of dopamine in the nucleus accumbens, as exhilarating and epheremeral as a firecracker.” Nash, J.M., Addicted: Why do people get Hooked (1997) “Positive words specifically have been found to activate regions of the brain related to reward.” Hamman, S and Mao, H, Positive and negative emotional verbal stimuli (2002) Q36 Why does it feel good to give praise? “Giving meaningful praise to someone has been statistically linked to increases in happiness and decreases in depression for up to a month after the communication. And that’s for the giver.” Seligman, M. Steen,T, Park N & Peterson C, Positive psychology progress: Emperical validation of interventions (2005) Q37 What type of recognition do employees want? For more than 56% of all respondents, the best reward that an employer could give for a job well done is a fun thing to do, with a dinner for two (at over 17%) trailing far behind in second place. The five least popular rewards were in order: desk accessories (0.1%), flowers (0.4%), CD/DVD vouchers (1.4%), movie vouchers (1.6%) and food hampers (1.7%). RedBalloon Summer 2003 Pleasure Survey, www.redballoon.com.au/go/pleasure
  37. 37. Q38 To be effective, how should recognition be delivered? Positive – Comments must always be postive and upbeat Immediate – The closer the recognition to the actual performance the better Close – Recognition is best presented in the employee’s work environment among peers Specific – A great presentation is a time to point out specific behaviors that reinforces key values Shared – Typically, recognition comes from the top down; however, recognition that means the most often comes from peers who best understand the circumstances surrounding the employee’s performance OC Tanner, Sourced from www.carrots.com, December 2008 Q39 What is an employee recognition program? An employee recognition program encompasses any reward program that is based on recognising people for their behaviours, and for reaching milestones (as opposed to performance or achievement related targets). Programs may take the form of rewarding staff that live the company values, for length of service, birthdays or other special occasions. Q40 Why do you need a recognition program? “Companies that utilised an effective employee recognition program enjoyed a 109% three-year median return to shareholders vs. a 52% return for those companies that did not.” Watson Wyatt Study of 3 million employees, as quoted in Forbes magazine (2004) rewards and recognition 37
  38. 38. 38 “In any company the real source of profit is individual actions of employees. Effective recognition impacts the bottom line by encouraging individuals to add real value to their actions. What gets measured gets rewarded, what gets recognised gets repeated.” Gary Mitchell, Director, The MotivAction Group A significant 28% of survey respondents indicated that the presence of an ongoing Rewards and Benefits program was a key factor in their decision to stay with their current employer. Incentives and Rewards Study – RedBalloon Pleasure Survey October 2007 www.corporate.redballoon.com.au Q41 What should a reward and recognition program focus on? “Decide what is important to your organisation and align your recognition program to the positive behaviours your organisation wants to promote. These positive behaviours will then advance your company’s mission.” Christi L. Gibson, Incentive (July 2008) Q42 What role do leaders play in successful recognition programs? “Recognition programs won’t work if they aren’t fundamentally built into the fabric of who you are as an organisation. Leadership teams can’t pass out a binder of expectations and expect the field organisation to simply execute because the CEO said it’s important. The leadership team needs to be completely aligned and model the behaviour themselves if they expect success.” John Berisford, Senior VP and Chief People Officer, The Pepsi Bottling Group
  39. 39. Q43 How can you get your boss to buy into a recognition program? You should treat it like any lawyer arguing a case. First, present the indisputable facts and argue the precedents on recognition (eg. Based on 10 years of research companies that are most effective at recognition are three times more profitable than their peers). Secondly, you would acknowledge and dispute each of the objections. In a segmentation study we conducted, a full third of all managers admitted being negative to the idea of recognition, so it’s not unusual if you find yourself working for such a person. One option is to pilot recognition in one or two groups within the company. Selling to Senior Management, Managers Tools Newsletter, OC Tanner. Sourced from www.carrots.com February 2008 (Or of course, we would be happy to help you with this and supply extra copies of the Little Red Book of Answers to give to your manager!) Q44 What impact can recognition programs have on retention? The impact of recognition on employee turnover is remarkable. In one case study, the Big Four accounting firm KPMG found that employees who were presented just one tangible award during a year were half as likely to leave as those who had not received a recognition award. Chester, E. & Gostick, A . The Carrot Principle (2007) rewards and recognition 39
  40. 40. 40 Q45 Can authentic praise deliver more to your bottom line than cash rewards? “Paying people a compliment appears to activate the same reward center in the brain as paying them cash.” Japanese National Institute for Physiological Sciences study, 2008 “Acknowledging staff achievements – praising employees – had the same impact on job satisfaction as a 1% increase in pay, which would equal £5.2 billion for UK businesses alone.” White Water Strategies, 2008 “Spot awards to employees resulted in a 10 times greater return on investment than an increase in base pay.” McKinsey and Company/Compensation Roundtable, 2008 Sourced from Increase Employee Performance by Meeting Psychic Income Needs, www.globoforce.com November 2008 Q46 What makes ‘experiential gifts’ an effective reward? When asked to choose their own reward preference, the majority of respondents (49%) preferred an experience based reward over a cash bonus (24%). Life experience is becoming a huge factor across society in general as people look to get more quality and depth from their lives. Providing a rewards program that recognises this momentum toward experiential growth can exponentially magnify the impact of this category of reward and have a lasting impression upon a company’s culture. Incentives and Rewards Study – RedBalloon Pleasure Survey October 2007 www.corporate.redballoon.com.au
  41. 41. Q47 How much should you spend on a reward and recognition program? As a benchmark, to have a real impact the best performing companies will spend equal to at least 5% of their payroll bill on engagement and recognition activities. That said, we have had many great success stories with clients who have spent far less…. it’s not the size of the prize, it’s what you do that makes a difference. Q48 How important is the internal communication of a recognition program? In our experience, from the hundreds of corporate programs we run, a consistent ongoing program of communication and management is needed to maximise the benefits of the program. You have to Launch it – Live it – Talk about it. Each element is crucial to the success of the program. If you have a program, you have to live and breathe it and make it a part of the daily working lives of your people through ongoing communication. Q49 How can you excite your staff about a rewards program? Enlist their help. “They, better than anyone else, know the tasks and requirements of their jobs. With their help, you can establish a rewards system that not only fills their needs better than one you create alone, but also has more credibility.” Deeprose, D. (1994). How to Recognise & Reward Employees. AMACOM rewards and recognition 41
  42. 42. 42 workplace fun “Workplace fun” for some businesses might sound like an oxymoron, but at RedBalloon we embrace this notion whole heartedly (it is even one of our company values to have a sense of humour and fun). This doesn’t mean that everyone is clowning around and they don’t take their work seriously, far from it. There is a balance to be found and over the next few pages we will share it with you.
  43. 43. 43 “The most wasted day of all is that on which we have not laughed” Nicholas Chamfort
  44. 44. 44 Q50 Why do we enjoy laughter? A 2005 University of Maryland study showed that a good laugh is good for your health because it can increase blood flow by 22%, while stress decreased blood flow. Gostick, A & Christopher, S. The Levity Effect: Why It Pays to Lighten Up (March 2008) Wiley Q51 Why is it important to have fun in the workplace? When we choose to love the work we do, we can catch our limit of happiness, meaning and fulfilment every day. This is so important when you consider that people spend about 75% of their adult wake time doing work related activity – getting ready for work, travelling to work, working, contemplating work, and decompressing after work. If we spend that much time in that part of our lives we ought to enjoy it and be energized by it. Ken Blanchard, Ph.D. co-author of The One Minute Manager and Gung ho! “Creative ideas flourish best in a shop which preserves some spirit of fun. Nobody is in business for fun, but that does not mean there cannot be fun in business.” Leo Burnett, Advertising Executive, 1891-1971 “No fun at work makes it a boot camp - all fun makes it a kindergarten... Fun must be tied to commercial returns.” Naomi Simson, CEO, RedBalloon
  45. 45. Q52 What are the organisational benefits if there is a fun work environment? “With low unemployment rates and fierce competition for great talent, fun at work can provide a competitive advantage, help attract and retain employees, and provide the spark to jump start creativity.” Gostick, A & Christopher, S. The Levity Effect: Why It Pays to Lighten Up (March 2008) Wiley In Fortune’s “100 Best Companies to Work for in America” employees that were denoted as ‘great’, on average, 81% of them worked in a fun environment. 2008 Great Place to Work® Institute. Sourced from www.greatplacetowork.com November 2008 Q53 Are employees more productive when they have fun? The notion of how people feel and react emotionally is important to their success and to the achievement of successful organisational performances in the workplace. Good moods enhance the ability to think flexibly and with more complexity, thus making it easier to find solutions to problems. Goleman Ph.D, Emotional Intelligence (1997) A Bantam Book “Most people who have seriously studied the consequences of the work environment say that if employees can lighten up on the job, they will increase productivity, improve morale and boost profits.” Stephan, E G & Wayne Pace, R. Powerful Leadership: How to Unleash the Potential in Others and Simplify Your Own Life. (2002) Prentice Hall workplace fun 45
  46. 46. 46 Q54 What impact can fun have on teamwork? Employees are going to be more likely to volunteer to tackle challenges and help coworkers out, rather than just doing “their” jobs and nothing more. Hiam, A . Motivational Management: Inspiring your people for maximum performance (2002) AMACOM Q55 Can being fun and having a sense of humour help your career? A study of 737 chief executives of major corporations found that 98% would hire an applicant with a good sense of humour over one who seemed to lack one. According to a survey of 1,000 workers, those who rated their manager’s sense of humour “above average” also said there was a 90% chance they would stay in their job for more than a year. According to a study in the Harvard Business Review, executives described by co-workers as having a good sense of humour “climb the corporate ladder more quickly, and earn more money than their peers.” Adrian Gostick and Scott Christopher, New York Times, www.nytimes.com March 2008. Sourced in December 2008. Q56 What role should leaders play to create a fun environment? “Great leaders have a way of bringing lightness into the workplace. The boss is not necessarily the humour giver as much as the humour enabler, or, at least, the humour tolerator.” Adrian Gostick and Scott Christopher, New York Times, www.nytimes.com March 2008. Sourced in December 2008.
  47. 47. Q57 How much fun are Australian and New Zealand businesses having? 72% of Australian and New Zealanders work in a fun environment. 40% of us overcome work-related pressures by sharing a ‘belly laugh’ at work everyday, whilst 20% of us don’t get to laugh very often. Giving employees something positive to talk about helps maintain buoyancy and will minimise water cooler conversations from the rumour mill about redundancies and downturns. RedBalloon Pleasure Survey ‘Work-life Balance’ (November 2008) from 2,714 respondents. www.corporate.redballoon.com.au/go/knowledge-bank/surveys Q58 How can RedBalloon bring fun to your workplace? We want to help you to mix business with pleasure – and there are many different ways we can inject fun into your business. Ultimately we want to give your employees or clients a memory of a lifetime from our range of over 2,500 experiences. So whether it is an exciting incentive, recognition program, launch event or team building event, we can add the right amount of fun, fit for your needs. No matter what, we get people talking - telling stories about the ‘good times’ they have. workplace fun 47
  48. 48. 48 “Coming together is a beginning, staying together is progress, and working together is success” Henry Ford
  49. 49. 49 creating cohesive teams The power of the collective mind is often referred to as one of the greatest forces in the business environment. Teams that work together effectively have the power to create much more than the sum of their individual levels of expertise. Over the next few pages we share with you the answers we have on how to get teams working together productively and harmoniously.
  50. 50. 50 Q59 How do effective teams impact organisational performance? “Effective teams, not abstract commitments to teamwork or empowerment, are the real drivers of top-flight organisational performance.” Katzenbach, J R & Smith, D K. The Wisdom of Teams: Creating the High- Performance Organisation. (1993) Harvard Business School Press Q60 What are the benefits of teamwork? Teams improve: • Skills: more talent, expertise and technical competence • Communication: vertical and lateral, cross departmental lines, more ideas, mutual respect • Participation: boost morale, “Buy in” to changes, job satisfaction • Effectiveness: solutions more likely to be implemented, process ownership. Mears, P (1994). Team Building: A Structured Learning Approach. CRC Press. Q61 How can you get your staff to work together productively and harmoniously? “Team building is creating a work culture that values collaboration. In a teamwork environment, people understand and believe that thinking, planning, decisions and actions are better when done cooperatively. People recognise, and even assimilate, the belief that “none of us is as good as all of us.” Blanchard, K & Bowles, S. High Five! The Magic of Working Together. (2001) William Morrow
  51. 51. Q62 Where do you start if you want to increase team cohesion? Organise an event or team building day starting with an ice-breaker. Ice-breakers are great, fun activities to help people who have never met ‘warm up’ and get to know each other. In a team building context they are often like an appetiser to a good meal – a taste of what is to come. Ice breakers: • Set a positive atmosphere for interaction • Encourage interest in the overall experience • Build cohesiveness and trust among members in the group • Aid members to become acquainted in order to develop a spirit of teamwork and interdependence. Q63 How should you effectively utilise team events for client entertaining? Entertaining never gains or keeps business - or if it does, the business isn’t worth having. Never entertain a client to say ‘please’. Entertain to say ‘thank you’. Or just for fun. It is about building relationships because you want to, not because you have to. Bird, D. Commonsense Direct Marketing. (2000) Kogan Page creating cohesive teams 51
  52. 52. 52 Q64 How can RedBalloon help you set up a team building experience that your staff or clients will love? If you want to get your team working together, or if you just want to give them a rewarding break from the office, we can help deliver something with real impact. Based on any of our specific experiences, we can put together an amazing team outing. What about a sailing treasure hunt, art experience, cooking class, record your own corporate song, murder mystery dinner, quad biking, adventure circus workshop, drumming workshop, clay target shooting or a karting grand prix? The list is endless… Contact us and we will happily send you some ideas for an event or team experience which matches your goals and objectives.
  53. 53. creating cohesive teams 53
  54. 54. 54 managing generations at work As the generation of baby boomers nears retirement age, gloomy predictions of a severe skills shortage remain at the forefront of the minds of many HR managers. With Generations X and Y moving up in the ranks, the challenge over the next decade will be to effectively manage this transition by supporting the unique needs of all generations whilst keeping them engaged with the vision and values of your organisation.
  55. 55. 55 “The glory of each generation is to make its own precedents” Belva Lockwood (1830–1917)
  56. 56. 56 Q65 What are the key differences between generations at work? Veterans – born 1922-1943. The era of “doing without”. Their core values include dedication/sacrifice, hard work, conformity, respect for authority, duty before pleasure and delayed rewards. Baby Boomers – born 1943-1960. Boomers got to the top by paying their dues, by patience and loyalty. For them, the best way to succeed was to become the workaholic generation. Generation X – born 1960-1980. The latch-key generation, see their workaholic lives of their parents as abhorrent. Their work loyalty is to their career, not to their workplace. Generation Y – born 1980-2000. Think they have as much to say as anyone else, that their feelings count, and that there is no reason to be automatically respectful of authority. Q66 How is the working population set to change? Baby boomers born in the 15 years after WWII have started to reach retirement age from 2005. They outnumber generation X by 2:1, and it does not take a mathematician to work out that there will not be enough people to fill the jobs vacated by the boomers. Fragiacomo, L. Talking about Y generation (2005) Sourced from http://misweb.com November 2006
  57. 57. Q67 How quickly will we lose the Boomers from the workforce? Boomers reject a life of either full-time leisure or full-time work. When probed about their ideal work arrangement in retirement, the most common choice among boomers would be to repeatedly “cycle” between periods of work and leisure (42%), followed by part-time work (16%), start their own business (13%) and full-time work (6%). Only 17% hope to never work for pay again. “The New Retirement Survey,” conducted for Merrill Lynch by Harris Interactive® in collaboration with Age Wave (2005). Sourced from http://www.ml.com November 2006 Q68 What is Generation Y’s general attitude towards work? “For twentysomethings, the unwritten contract with their employer is understood at the most visceral level to be: ‘I rent you my skills, I don’t sell you my soul. In return for my contributions, I expect something back in addition to my pay cheque – interesting development, and a work life that doesn’t encroach on my personal life’.” Moses, B. Workers of the world unite! (2006) Sourced from www.theglobeandmail. com November 2006 “I’ve found that now - no matter what age - people have become generation ‘why’. Employees want to know why they are doing something and what contribution they make.” Naomi Simson, CEO, RedBalloon managing generations at work 57
  58. 58. 58 Q69 How does Generation Y view leadership? “Y’s were exposed to leadership at a very early age, both at school and in workplaces - it’s no big deal to them. They’re sceptical of the empowered leader, preferring a collaborative team-based approach, so it’s unlikely that they will be adopting the old models of authoritarian leadership.” Mark McCrindle, Social Researcher. Fragiacomo, L. Talking about Y generation (2005) Sourced from http://misweb.com November 2006 Q70 How can you attract/retain Generation Y? The main aspects of work that Gen Y love (considerably higher than other generations) is ‘the people they work with’ therefore to retain and attract Gen Y it is important that an organisation creates a friendly, social and cultural environment. Seek intelligence: 2008 survey of employee satisfaction and motivation in Australia Avril Henry, executive director of AHRevelations who has researched generations at work for over 5 years recommends: • Redefine expectations: Long-term employment will be four to five years and ‘nine to five’ is out • Provide training: Not just technical training. Include leadership training, conflict resolution and communication skills • Be inclusive: Do not wait too long before providing an opportunity for Y to contribute • Give recognition: A card, movie tickets, dinner or even a simple ‘thank you’ make people feel valued Fragiacomo, L. Talking about Y generation (2005) Sourced from http://misweb.com November 2006
  59. 59. managing generations at work 59
  60. 60. 60 “A brand that captures your mind gains behaviour. A brand that captures your heart gains commitment” Scott Talgo
  61. 61. 61 building an employer brand Employer Branding has been defined as the ‘company’s image as seen through the eyes of its associates and potential hires’. Your company as a brand is far more than just the product or service you provide. A brand cannot be delivered without its people, who create and shape what it stands for and how it is perceived. Therefore your brand has to speak to potential employees as something they want to be part of, not because of the product, but because of the people.
  62. 62. 62 Q71 What is an ‘Employer Brand’ and why is it important? ‘Branding’ as a generic term is often assumed to belong to the marketing function. However, organisations are increasingly waking up to the recognition that directly or indirectly most brand promises are delivered by people and not products. Experience has shown that in order to develop an employer/ organisation brand it is important to articulate the image and vision of the future and to invite all employees to unite behind it. Thorne, K. Blending Learning: How to Integrate Online and Traditional Learning (2003) Kogan Page “People build brands. And brands are a collective set of relationships. The brand is a promise held in the hearts of the people who know us. How people talk about us is the most powerful way to build a brand.” Naomi Simson, CEO, RedBalloon Q72 Why should you synchronise your brands? You can create and work on your employer brand all you want. If your employer brand is in sync with your product brand, you’re good to go – the two brands will reinforce each other. However, if your employer brand is running contrary to your product strategy or financial needs, your employer brand is going to suffer. Branding and Employment (2006) Sourced from http://systematichr.com November 2006
  63. 63. Q73 Is customer experience linked with organisational culture? “My take though is that it is difficult, if not impossible, for employees to deliver a customer experience if they in fact are not operating and living in a culture that offers them a really cool, compelling, beautiful, inspiring — whatever kind of experience you want to create with your brand and a simultaneous internal employee experience.” Regina M. Miller, CEO and Founder of the Seventh Suite TM (2006) The Employee Experience. Sourced from http://blogs.bnet.com/hr/?p=378 November 2006 Q74 Is employer branding only the domain of the HR department? While employer branding is predominantly seen as the domain of HR, marketing also plays an important role. In a 2003 Economist survey into employer branding, respondents who had HR as the major part of their job function (59%) said that employer branding is too important to be left solely to a HR department. In fact, 15% of respondents felt that responsibility for the day-to-day management of the employer brand lay with the CEO or MD. building an employer brand 63
  64. 64. 64 Q75 What’s the difference between employer branding and becoming an ‘Employer of Choice’? Although becoming an ‘employer of choice’ involves improving recruitment and retention, true employer branding goes farther and involves motivating employees and generating improved alignment between personal goals and the vision and values of the company. Cees B. M. van Riel & Charles J. Fombrun. Fame & Fortune: how successful companies build winning reputations (2004) Prentice Hall Q76 Why are company values strongly linked to employer branding? The Ritz’s employer brand has long been “We are ladies and gentlemen serving ladies and gentlemen.” “If you say you’re going to implement the employee promise and you say you’re going to treat everyone with respect, you just have to do it. I find with a lot of companies these are just words that are hanging on a plaque on the boardroom wall, but in reality people don’t reward with those behaviours associated with the desired state.” Lawrence Chi, director of HR at the Portman - Ritz Carlton, Shanghai. Living values the Ritz-Carlton way (2006) Sourced from http://www. humanresourcesmagazine.com.au November 2006
  65. 65. Q77 Why embrace employer branding now? Studies by both the U.S. Census Bureau and the United Nations assert that the supply of workers 25 to 44 years old will decline 15% over the current decade. That means there will be fewer prospects to recruit for mid-level jobs – the core of the workforce. Nicholas C. (EDT) Burkholder, Libby (EDT) Sartain. On Staffing: Advice and Perspectives from HR Leaders (2003) John Wiley and Sons “The cost of replacing an existing employee can be up to 2.5 times their salary. Faced with the challenges of an employment market with a shrinking pool of talented workers, companies will need to start focusing their employer branding efforts more on existing employees if they are to decrease employee turnover.” Minchington, B. Your Employer Brand-Attract, Engage, Retain (2006) Q78 Why is having an employer brand important to Generation Y? “Generation Y will put your company’s culture under the microscope and if they don’t like what they see they’ll walk away. Y’s will not apply for jobs with organisations they perceive have poor policies and stupid procedures. If they don’t believe in what the organisation stands for, they won’t bother applying,” Avril Henry, Executive Director of AHRevelations. Fragiacomo, L. Talking about Y generation (2005) Sourced from http://misweb.com November 2006 building an employer brand 65
  66. 66. 66 Q79 What impact does employer branding have financially? A 1999 UK Institute of Employment Studies report found that an increase in one point in employee commitment (on a five point scale) delivered a 9% increase in sales, “In the case of service brands in particular, it is recognised that customer satisfaction and loyalty is closely related to the expected and perceived behaviour of employees, which in turn is directly linked to employee engagement.” Kevin Lodge, Group General Manager of employment marketing communications at Adcorp. Making your mark with employer branding. (2006) Sourced from http://www.humanresourcesmagazine.com.au November 2006 Q80 Why should the new mantra be ‘the employees are always right’? “The mantra should be the employee is always right and the customer is why - because they are in the frontline interacting with the customers. If you expect frontline employees to care about the customer, you must show them you care about them.” Hilary Dreiling, Senior Manager of Reward and Recognition, T-Mobile USA. Presentation to The Motivation Expo, Chicago, October 2008
  67. 67. Q81 Why is managing your employer brand crucial? “What keeps me awake at night are the intangibles. It’s the intangibles that are the hardest thing for a competitor to imitate. If we ever do lose that we’ve lost our most valuable competitive asset” Herb Kelleher, CEO, Southwestern Airlines (US) According to the Brookings Institution, 85% of a company’s value is now intangible assets including knowledge, reputation, brand and human talent. This is up from 38% in 1982. The Economics of Humanity in Business, Forum For People Performance Management and Measurement. Sourced from http://www.performanceforum.org December 2008 “Candidates have become much more selective in the positions they will consider and accept. They will thoroughly research an organisation’s opportunities and culture before deciding to submit an application or accept any role.” Grahame Doyle, Director, Hays (August 2008) Sourced from www.humanresourcesmagazine.com.au December 2008 “It’s not what you do, but who you are that makes the difference.... consistently living the values – always, no matter the circumstances.” Naomi Simson, CEO, RedBalloon building an employer brand 67
  68. 68. 68 improving sales performance No matter what business you are in or what products and services you sell, you will always need to have highly motivated sales staff, effective incentives and unique promotions. We have worked with many companies to deliver sales incentive programs to boost individual performance or customer up-take of products, so here are a few of our learnings and an introduction to experiential marketing.
  69. 69. 69 “If you work just for money, you’ll never make it. But if you love what you are doing, and always put the customer f i rst, success wcll be yours.” Ray Kroc
  70. 70. 70 Q82 What objectives can sales incentives be used to achieve? According to the latest Incentive Federation research of consumer marketers, incentives and rewards are used to achieve the following objectives: • Increase or maintain sales • Create new markets • Gain a larger share of existing markets • Acquire new customers • Build customer loyalty or trust Sourced from www.incentivecentral.org November 2008 Q83 How to choose the right type of sales incentive? ”Don’t presume to know what will excite a person. Everyone is different. Ask what special something would excite him or her. If they say something monetary, probe to see what else. You’ll be amazed.” Sam Manfer. Sourced from www.detroiteronline.com November 2008
  71. 71. Q84 What are the top incentives to motivate sales staff? When surveyed 168 media sales staff said that ‘lifestyle’ rewards such as holidays, experiences and sabbaticals would motivate them to achieve over and above their targets. More time off was also a popular option with 31%, and more commission/bonus only came in at 8%. Sales is a stressful job and being able to let off steam by doing something completely different – and having it paid for - is often more satisfying than an extra one or two per cent commission. Lester, N. Managing Director of Regan and Dean Recruitment, www.regananddean.co.uk/downloads/survey_motivating.pdf Q85 How can you motivate your sales force for optimum performance? “It’s not just about the paycheck. Effective incentive compensation management is based on an understanding of basic human motivation – on the importance of trust, self-esteem, social recognition and improved chances to fulfill one’s potential. “ Bakosh, R. Outlook Journal, September 2007. Sourced from www.accenture.com December 2008 “Incentive programs can improve performance in teams by up to 44%, and in individuals by 25%.” Stolovitch H, Clark R, & Condly,S. Incentives, Rewards, and Workplace Motivation (2002) Society of Incentive and Travel Executives Research Foundation. Sourced from Iloverewards.com November 2008 improving sales performance 71
  72. 72. 72 “Motivation of sales people commonly focuses on sales results, but nobody can actually ‘do’ a result. What matters in achieving results is people’s attitude and activity and the areas of opportunity on which the attitude and activity is directed.” Chapman, A. Sourced from www.businessballs.com December 2008 Q86 Why do non-monetary incentives have a higher perceived value than cash? There are four different psychological processes which contribute to increasing the perceived value of tangible non-monetary incentive awards over cash-based awards: 1. Evaluability - Recipients are likely to place a higher value on the award than its actual cost. 2. Separability - Cash incentives tend to be thought of as compensation. 3. Justifiability - When a non-cash award is something they would not purchase on their own, they can justify the award because they won it through achievement. So if a sky dive would be too big of a splurge normally, the recipient will enjoy it all the more. 4. Social Reinforcement - Non-cash incentives can be awarded publicly in front of other employees with a lot of fanfare. Also, the recipient is likely to talk about it openly, where they would not feel appropriate discussing a cash award - just as they don’t openly discuss their salary. This means you generate additional good feelings toward your company among many employees - not just the incentive recipient. Jeffrey, S Dr. (2004) The Benefits of Tangible Non-Monetary Incentives Study, University of Waterloo
  73. 73. “Non-cash incentives were 24% more powerful at boosting performance than cash incentives. ” University of Chicago study, 2004. Sourced from Increase Employee Performance by Meeting Psychic Income Needs, www.globoforce.com November 2008 Q87 Why are sales incentive programs effective in uncertain economic times? Five fundamental reasons explain why incentive programs, unlike other sales and marketing strategies, withstand economic downturns: 1. Low fixed costs, variable costs driven by performance, high potential return 2. Ability to effectively target audiences (no pay and spray) 3. Relative ease of measurement 4. Flexibility 5. Potential for both short-term and long-term results Incentive Performance Centre. Sourced from www.incentivecentral.org November 2008 Q88 How much does a company need to spend to change behaviour? It takes an increase of 5% to 8% of an employee’s salary to change behaviour, but behaviour can be influenced at a cost closer to 4% of the employee’s salary using non-cash incentives. Jeffrey, S Dr. (2004) The Benefits of Tangible Non-Monetary Incentives Study, University of Waterloo improving sales performance 73
  74. 74. 74 Q89 How can RedBalloon experiences promote your products or services? RedBalloon experiences are ideal because apart from providing an amazing memory, they are exciting and inspirational. They offer a unique tool that can be used to increase sales uptake and enhance marketing campaigns. Our clients have used them for consumer and corporate campaigns such as: • ‘Free Gift’ with purchase eg. Buy a widescreen TV and get a $100 experience voucher • Themed to products or marketing campaigns creating a stronger brand tie-in • Time bound promotions • Competition prize draws • Promotional products or giveaways Q90 What are the key factors when choosing an incentive or promotional product? When choosing a promotional product for an incentive or gift with purchase, it’s crucial you get it right so you need to ask yourself, does the gift: • Fit in with my product’s brand positioning? • Make sense for my target market? • Support usage of the brand you are promoting? • Tie in well with an overall promotional theme? William Kestin, CEO APPA, Published in Marketing Magazine August 2006
  75. 75. Q91 What impact does a ‘gift with purchase’ promotion create? The true power of promotional products is the response elicited by the correct delivery of that product in a properly constructed promotional campaign. Increased sales are the major factor but they also increase customer goodwill; Retail and employee excitement about your product and offer; Generation of repeat store visits or purchases; and faster sell-through. William Kestin, CEO APPA, Published in Marketing Magazine August 2006 Q92 How can you capitalise on the new era of the ‘Experience Economy’? “Goods and services are simply props to engage the customer. Customers want memorable experiences and companies must become stagers of experiences. While the work of experience stager perishes upon its performance, the value of the experience lingers in the memory of any individual who was engaged by the event.” B. Joseph Pine II and James Gilmore, Welcome to the Experience Economy (1999) Harvard Business School Press improving sales performance 75
  76. 76. 76 Q93 How can experiences create positive conversations about your company? “We enjoy talking about our experiences much more than our possessions. Talking about our experiences – including our shared experiences – is the stock in trade of our relationships... Good relationships are strongly associated with happiness.” Gittins, R (2004, February 18). Activity is the goods for true satisfaction. The Sydney Morning Herald. “If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.“ Jeff Bezos, CEO, Amazon.com Q94 How can positive conversations impact your bottom line? “Recommendations from family and friends is most important over all other consumer touch points when it comes to influencing purchases.” Public is Media Network Zenith Optimdeia, AdAge, April, 2008 According to a global Nielsen survey of 26,486 Internet users in 47 markets, ‘consumer recommendations’ are the most credible form of advertising among 78% of the study’s respondents. Word-of-Mouth the Most Powerful Selling Tool, Nielsen Online Global Consumer Study (April 2007)
  77. 77. “The story is what drives the bond between the company and the consumer.“ Klaus Fog, Christian Budtz. Baris Yakaboylu. 2005 Storytelling: Branding in Practice. “Stories can be used to communicate visions and values, to strengthen company culture, to manage the company through change and to share knowledge across the organisation.” Fog,K, Budtz, C & Yakaboylu, B. Storytelling: Branding in Practice (2005) “Commodities are fungible, goods tangible, services intangible, and experiences memorable. “ B Joseph Pine II, James H Gilmore. 1999. Welcome to the Experience Economy – Harvard Business Review Article improving sales performance 77
  78. 78. 78 “People will forget what you said, people will forget what you did, but people will never forget how you made them feel” Maya Angelou
  79. 79. 79 how will RedBalloon get you results? We are passionate about delivering pleasure to people in organisations, and have done so with great success for many years, working with the largest employers through to small micro-businesses. This section is dedicated to the ways that we can assist you successfully introduce the concept of pleasure into your organisation, and the results it will bring you.
  80. 80. 80 Q95 How long has RedBalloon been around and where did it come from? RedBalloon was launched by Naomi Simson in October 2001. Naomi has an extensive background in corporate marketing roles, working with IBM, Apple Australia and Ansett. Naomi took a view very early on that in her business CEO actually stands for Chief Experience Officer because it is up to her how people (customers, suppliers, employees and stakeholders) experience RedBalloon. With this in mind she has built a strong values based business, which uses an amazing product (life experiences), to deliver results based on our natural ability and desire to have fun and tell stories. RedBalloon started with a story, a story to change gifting in Australia and New Zealand forever. It’s what we are committed to for every individual at home or at work. Since its inception, RedBalloon and Naomi have received a number of acknowledgements - most recently: • 2008, 2007, 2006, 2005, 2004 BRW Fast lists • 2008, 2007, 2006 Deloitte Technology Fast 50 • 97% Employee Engagement score by Hewitt Associates (2008) • 2008 Telstra Business Women’s Winner – Innovation • 2008 NSW Telstra Business Women’s Winner – Business Owner • 2007, 2006 & 2005 Finalist Telstra Business Awards – 20-50 employees category • 2008, 2007, 2006, 2005 & 2004 Hitwise Award - # 1 Gifts and Flowers category - most visited website
  81. 81. Q96 What is a RedBalloon experience and what types are there? We package pleasure in the form of experience vouchers. We offer over 2,500 experiences so it’s impossible to list them all here. On our site we have them grouped into 12 different categories which include Water, Driving, Spa & Wellbeing, Flight & Flying, Gourmet, Getaways, Creative, For Kids, Anywhere, Outdoor, Gift Boxes and Group. So whether you want adventure, an adrenalin rush or the ultimate relaxation, we have some great ideas to suit everyone. You can easily search and check out all our experiences at: www.redballoon.com.au Q97 Why do we believe experiences work? We enjoy talking about our experiences much more than our possessions. Self-storage is a fast growing industry, as people are hoarding so much ‘stuff’. But if we think about it, we can’t take it with us. It’s the memories, the stories and our shared moments that we hold close. When we reflect on our lives, experiences form the bulk of what we remember. People talk about their experiences much more than their possessions and relive these experiences with colleagues, friends and family. For example, think of the reaction you have when you experience something you enjoy, for example, you eat a delicious meal or have an amazing holiday – you tell people about it! People like to ‘brag’ about fantastic experiences they have… “Guess what I did… look what happened to me…”! how will RedBalloon get you results? 81
  82. 82. 82 As a motivator cash is just not effective. Whilst it has its place, it simply isn’t memorable, disappearing on bills and necessities and eventually becoming expected and hence confused with compensation. Store cards are the same as cash. If you go and buy a new iron, are you going to rave on to your family and friends and excite your colleagues about the hows and whys you earned your award? We are firm believers that life is the sum of your experiences and memories define who you are. We are in the business of making people happy and we want to extend this to your organisation. Imagine the employer branding potential you could unleash by giving your people the gift of a memory… as opposed to more stuff! Q98 Why do RedBalloon vouchers make easy rewards and incentives? It’s so easy to give a RedBalloon voucher and put a smile on someone’s face. You can choose a voucher for a specific experience like a Tiger Moth flight or, give a gift certificate that lets them choose what they want to do (with or without a denomination written on the front). Our email vouchers can deliver ‘thanks’ to any inbox within 10 minutes, you can print your own voucher and hide it somewhere for them to find, get the postman to deliver it or watch as three bouncing helium red balloons with a voucher attached make their way across the office via courier for maximum impact!
  83. 83. Q99 What services can RedBalloon provide my organisation? In addition to offering vouchers for ad-hoc corporate gifting, RedBalloon also has a range of program products which effectively structure reward and recognition/incentive programs based on organisational objectives. Structuring a program involves the design of award types and consideration of the optimum frequency to incite the right behaviours. For details and case studies visit: corporate.redballoon.com.au Voucher Programs Our voucher programs provide structure so that you can personally recognise your people or customers with our beautifully presented vouchers co-branded with your logo and message. Voucher programs are great for public acknowledgement and sales incentives. Online Points Programs Our online points programs run in a similar way to a frequent flyer programs allowing participants to accumulate points to put towards their choice of experience. Points can allocated on an ad-hoc basis or for meeting awards based criteria. Our online platform has all the bells and whistles to meet any of your needs - from an employee loyalty program, length of service awards, employee of the month recognition or just simple corporate gifts for birthdays and special events. Team Events We have lots of suitable experiences for groups which are fantastic for team building, celebrating team achievements or just as an excuse to get out of the office. how will RedBalloon get you results? 83
  84. 84. 84 Marketing Communications Communication can make or break a program’s success, it’s not enough just to tick a box and say you have a program running. The quality and consistency of messages to put rewards on the company-wide agenda is crucial and our in-house team of talented writers and designers are here to help you launch and promote your program. Engagement consultation We have learned that engagement is not an activity but a journey. We have done it many time times before and want to share all our knowledge, and over 20 years combined experience, with our clients. We take the time to listen and discover who you are and where you want to go and provide a proven methodology to take you there. Q100 Who uses RedBalloon? Organisations large and small across every industry! We have more than 1,400 corporate clients. Some of Australia & New Zealand’s best known brands like Qantas, Vodafone, Network Ten, Telstra, Ernst & Young, Alcatel Lucent and Nestle through to smaller businesses such as CA Australia and Creative Promotions. To view case studies of organisations using RedBalloon with amazing results go to: corporate.redballoon.com.au corporate.redballoon.co.nz
  85. 85. Q101 What difference has RedBalloon made to organisations? You can view more than 25 case studies online, but here’s a snippet of one we are very proud of: APHS, who provides pharmaceutical supply and clinical services, approached RedBalloon to create a formalised reward and recognition program for its 400 staff. The Online Points Program had positive results across the company with marked improvements in employee engagement and creating a more cohesive team aware of each other’s contribution to the business, despite geographical barriers. “It’s amazing to see in an 18-month period how deeply engrained in our culture the program has become. It’s really helping the organisation to create a forum of appreciation – it leads to better relationships” said General Manager, Cathie Reid. Q102 What is the 100% Price Guarantee? You’ll pay the same through us for an Experience Voucher as you would by going direct to our suppliers. If you find the supplier is advertising their standard RRP at a cheaper price than ours for the same experience, we’ll give you a complete refund. Please note: The majority of our accommodation package prices are based on peak rates as usage demonstrates this is when our customers want to use them. how will RedBalloon get you results? 85
  86. 86. 86 Q103 What are the Fringe Benefit Tax (FBT) implications? It depends on how much you are spending, how often and on whom. Please seek your own tax advice on FBT implications. Q104 What are the benefits of setting up a corporate account with us? We like to treat our corporate clients with extra special care, so we offer a premium service: • You’ll have an account manager who’ll be available to answer any questions you might have • We’ll set you up with a login to our corporate purchase options, which allows you to make bulk purchases with ease and pay via invoice (14 day terms, subject to a credit application) • You’ll be able to add your logo to have your vouchers co-branded (charges apply) • Support with promotional elements such as images and design • We provide assistance and training to internal coordinators on maximising the return on your investment • You’ll receive our free corporate newsletter, packed full of information, survey results, case studies and more
  87. 87. Q105 How can you engage RedBalloon? The best thing to do is pick up the phone and call 1300 850 940. Whether you are ready to implement a program or just want some advice, one of our “engagement specialists” will be happy to talk to you and will guide you through a list of considerations. Depending on how complex your requirements are, we’ll send a RedBallooner to you to take a detailed brief in order to help you design a program that is as closely aligned to your goals. They’ll then be with you all the way, from initial proposal to the launch of your program. how will RedBalloon get you results? 87
  88. 88. 88 where can you find more information? There are a variety of ways you can contact us. Our experienced team is ready to help you, whatever your needs or questions. Give us a call Australia: 1300 850 940 New Zealand: 0800 555 029 Go Online corporate.redballoon.com.au corporate.redballoon.co.nz naomisimson.com (Our CEO’s blog on all things from leadership, engagement, marketing to fun) Email Us Australia: query@redballoon.com.au New Zealand: query@redballoon.co.nz
  89. 89. 89 like another copy? We would be delighted to send you another copy of the Little Red Book of Answers for your friends or colleagues. Simply, order online at: www.redballoon.com.au/go/answers www.redballoon.co.nz/go/answers
  90. 90. “May you live all the days of your life” Jonathan Swift Mix business with pleasure.
  91. 91. Ever wished you had ‘all the answers’? This little book will place them all at your fingertips if you have ever pondered…. How do I nurture happy, motivated and productive staff? How do I create unbreakable employee engagement? How do you manage generations at work? How do you build an employer brand? How do you create an effective reward and recognition program? What tools can I use to boost sales? How can I foster a fun work environment? How will RedBalloon get me results? ‘The Little Red Book of Answers’ contains some gems, both from our own experience and research, as well as that of other organisations. This book will help you identify, plan and develop strategies for your organisation whether you are looking to engage staff, incentivise distributors or ‘woo’ clients. RedBalloon – Australia / New Zealand corporate.redballoon.com.au corporate.redballoon.co.nz