Companies have to compete for talent and profits more than ever before. Learn why incentive travel programs are a worthy investment offering long-term ROI.
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 also provides a myriad of other benefits.
1. 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 sends the message that their efforts are appreciated. A 10-year, 200,000-person study of Managers and Employees found that companies that most effectively recognize excellence enjoy greater profitability (the top 25% had an average ROE three times higher than the lowest 25%).
2. Employee Retention
Every year U.S. businesses lose an estimated $11 billion in revenue due to employee turnover. 79% of people who quit their jobs cite "lack of appreciation" as a key reason for leaving. Firms with strategic recognition programs (such as incentive travel) have significant advantages in engagement, retention and performance. Considering the average cost to fill a position is $3,000 to $18,000, incentive trips are a sound investment.
3. Company Loyalty
When employees see that their company acknowledges and respects their efforts, they become more loyal and dedicated. In fact, 72% of employees who earn a travel incentive reward say they feel increased loyalty to the company. Loyal employees serve as ambassadors for your brand.
4. The "Reciprocity Effect"
Cash tends to be viewed as transactional, whereas non-cash rewards feel like gifts and are more social in nature. 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.
5. Lasting Memories
Incentive trips give employees a memorable experience. Equivalent cash gifts, often spent on dull items or paying down debt, lack the same sentimental link. When your employee returns from an incentive trip, they will likely recount their experience with colleagues and friends for months or years to come, becoming valuable advocates for your company.
6. Good for Well-Being
Incentive travel provides personal wellness benefits to employees. Employees who are rewarded with an incentive trip often experience reduced stress, increased creativity, and boosted confidence. They return to work feeling re-energized. 86% of buyers also highlighted incorporating wellness (yoga, healthy meals, etc.) into incentive travel programs.
7. 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 enjoy special experiences and meals together, providing them with ways to relate on a more personal level. Millennials rate the importance of work culture at 8.5 out of 10. Incentive travel also provides an opportunity for remote teams to bond.
8. Establishes Benchmarks for Productivity
Incentive travel can help your company establish benchmarks and identify best practices. If Jill sells ten items a month and Jack only sells six, then Jill goes on the incentive trip — but management knows ten is achievable, so they can identify Jill's best practices and help Jack improve.
9. Tailorable to Suit Your Budget
Incentive travel can be tailored to suit your budget. Trips can range from a weekend getaway domestically to an international trip. Incentive travel can also be tiered to reward different levels of achievement.
The Bottom Line: Incentive Travel is Worth the Investment
At a time when companies have to compete for talent and profits more than ever before, incentive travel programs are a worthy investment on all fronts. They help you achieve organizational goals and offer a strong return on investment, while boosting employee morale and retaining top talent.