Do You Know Where Your Bottom Line Is?

Reward and retention efforts can produce multimillion-dollar returns. That’s what Andersen Consulting found in a survey of about 500 executives at more than 250 companies. Here’s what the study revealed: programs to retain and reward leading sales, marketing and customer service people can give a $40 million lift to a $1-billion business’ bottom line. Nothing to sneeze at, huh? The biggest payback – $13 million – came from efforts to motivate and reward employees. Programs to draw and keep talent add $10 million to a bottom line. So, add the research to the growing pile of evidence showing that incentives can play a big role in a company’s success.

But when a company searches for the right incentive, it should consider that top producers want flexibility and respect for their personal lives and needs, experts say. For example, a study from Yankelovich Partners found that the latest hip leisure activity for women is home improvement. No wonder gift cards and gift certificates redeemable at department stores and other major retailers enjoy wide popularity. According to Carlson Marketing, Macy’s has been a top redemption choice among its clients, a fact attributed to the retailer’s merchandise variety, brand recognition and national presence. Macy’s offers gift cards and certificates in preprinted denominations of $10, $25, $50, $100 and $250.

For the future, U.S. Bureau of Labor Statistics projects changes in the labor force likely to affect future reward-and-recognition campaigns. With unemployment expected to rise no higher than 5 percent, retention and recruitment will remain key priorities. As more women and more workers ages 16 through 35 enter the labor force, rewards appealing to both genders and all age categories will be more important than ever. Amid the changing needs of corporate America, Macy’s says it’s prepared to help any organization meet its objectives no matter the size or business sector. “Macy’s offers planners powerful tools to compete for top talent: rewards that fit both genders equally, fashion leadership to please new shoppers and brands that are in demand from Boomers.”

For more info about Macy’s Corporate Sales & Services, call 800-452-4440.