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07 Sep 2022

How to develop equitable recognition incentives for your global workforce

With the cost of living crisis affecting nations differently, it’s important to ensure employees in worldwide locations get an equal slice of motivation incentives

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A points-based reward solution is a good way to let employees redeem incentives that are meaningful and motivational. Online reward selections provide choice and can offer an efficient and equitable way to reach global employees with a consistent approach.

The case for equity

There are several arguments for ensuring your reward strategy as a component of the employee experience is equitable across your organisation including;

• Improved employee motivation
• Increased employee retention
• Simplified and streamlined administration
• Enhanced business outcomes
• Equity and the cost-of-living crisis

However, with economists predicting a global recession within months, the cost-of-living crisis remains high on the agenda for employees and employers alike and can have a direct impact on a reward strategy.

With more organisations adopting a global approach to their recognition incentive strategy, what could you do to ensure your approach remains globally consistent while also considerate of local economic challenges in areas like Turkey, Latin America and Indonesia?

Points parity

A points-based rewards system provides the opportunity to create global parity, ensuring any programme it is aligned with represents a fair and equitable reward in all the countries that your organisation operates in.

The principle of points parity looks at both earnings and purchasing power in each region to recommend country-based points values making fair rewards accessible regardless of the economic climate of the participant.

If you have a points-based system in place, review it to see if it needs adjusting considering factors like inflation, supply chain costs or any other localised nuances affecting the cost of living in some countries.

Global currencies

Similar to points parity, another approach is to seek reward providers with supplier networks that trade in multiple stable global currencies. This approach can help iron out creases in price fluctuations across multiple regions.

Leverage local experts

The most effective global recognition providers use local experts, partners who not only understand their customers, but are monitoring, predicting and mitigating unusual local conditions, often before employees feel their impact. In cases where specific countries are suffering, look to increase or pivot redemption options in the short term from neighbouring regional suppliers where the crisis is not hitting as hard, or swapping out tricky items for those which can be delivered digitally.

This approach ensures your motivation incentive offer remains extensive for your employees without hyperinflation for example, affecting purchase power.

In partnership with BI WORLDWIDE

BI WORLDWIDE is a global engagement agency delivering measurable results for clients through inspirational employee and channel reward and recognition solutions.

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