Page 44 - Occupational Health & Safety, April 2018

INCENTIVES
IRFTrendsStudyShowsFocusonCulture,Wellness
This year’s Trends Study said the largest number of net increases reported by respondents was for including wellness components in their programs.
BY JERRY LAWS
ing faster than their budgets for it. And there is a supply-and-demand problem for incentive-grade hotel rooms cited in the study, which noted that high-end hotels have been experiencing the highest occupancy rates.
Safety, Security, and Wellness
The many U.S. natural disasters during 2017 are a factor in the study, which listed “Increased Focus on Managing Risk and Ensuring Safety” fifth among 2018’s key trends. The foundation’s Disruption Study in 2017 showed more than half of planners had expe- rienced disruptions to their event in the previous year. This is causing them to increase their use of tools to mitigate risk and their reliance on outside risk man- agement and consulting assistance, the study says, explaining that all parties are increasing their invest- ment in managing risk and ensuring security.
Wellness incentives ranked seventh in the study. It said the largest number of net increases reported by respondents was for including wellness compo- nents in their programs. Employees now expect more fitness-related choices and experiences in their com- panies’ incentive programs—everything from retreats and workout tours to wellness gifts, gym apparel, and promotion of health-related apps.
The Outlook for Gift Cards
The authors reported that gift cards, which show up in the tenth item on their list, “continue to gain momen- tum as a key reward option in both rate and spend.” When firms buy gift cards, more than 90 percent are purchasing them for their employees, while more than 80 percent buy for their internal sales force and more than 50 percent for customers. The study found that demand for merchandise awards, such as electronics, apparel, and luggage, continues to grow strongly, with demand for experiential rewards rising faster than for individual travel rewards.
Other trends making the list were predictive ana- lytics, AI, and augmented reality, forecast to be fun- damental elements of effective incentive, rewards, and events going forward; and rising interest in unique and offbeat destinations. (Prevue magazine was the study’s Research Advocacy Partner.)
Jerry Laws is the editor of OH&S magazine. REFERENCES
1. http://theirf.org/research/irf-2018-trends-study/2390/
The Incentive Research Foundation released its 2018 Trends Study1 in February 2018, highlighting in it 10 key trends the founda- tion predicts will affect organizations and their workers during this year. The trends identified in the study touch on safety, workforce engagement, gift cards, wellness incentives, and incentive travel.
But topping the list is this: “Building a Brand-Asset Culture Becomes a Business Imperative.” The study explained why a strong company culture is para- mount for businesses competing in the 21st century and, as a result, why use of non-cash awards is soar- ing. “We expect non-cash awards to grow as the focus on brand, culture, and innovation becomes increas- ingly central to business success. Organizations with non-cash award programs of any kind should ensure their programs are rewarding, at some level, innova- tion, adaptability, and brand-centric behaviors,” ac- cording to the study.
The next two trends on the list involve global economic growth and regulatory pressures. Stronger economies are good news for companies’ incentive travel budgets, which are likely to grow, and for mer- chandise/gift card programs, the study reports. On the regulatory front, the study authors reported that some 60 percent of respondents said it’s tough to stay informed about federal, state, and industry regula- tions affecting their incentive and recognition pro- grams. One regulation having an impact is an EU data protection regulation taking effect this year, it said.
Travel incentive providers are facing some head- winds, as 60 percent of the survey’s respondents reported the costs of their incentive travel are ris-
38 Occupational Health & Safety | APRIL 2018
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