Case Study – Boosting Retention Rates
A Houston-based energy company was struggling with its retention rates. Employee training was long, expensive, and tedious, with the entire process taking over three months. Grueling work hours only exacerbated the problem. Employees worked 14 days on and then received only two days off. In a regular workweek, workers would often clock significant hours in overtime work. Subsequently, the company had difficulty keeping highly skilled employees and was battling a high turnover rate. The situation was having a huge impact on the company’s bottom line, as the cost of replacing a worker was over 2.5 times his or her annual salary.
The company wanted to keep its employees. However, leaders also recognized that the job was demanding and stressful and wanted to help the employees rest and relax on a well-deserved vacation to thank them for all of their hard work. Peak Performance was able to help the company institute a yearly retention incentive and substantially decrease the company’s turnover rate. Once an employee had worked with company for a full year, he or she was given a $2,000 travel incentive. Peak Performance provided a range of suggested destinations to help give employees travel ideas. However, employees were totally free to travel to any destination of their choosing. The only stipulation was that employees had to spend the voucher on travel. The company only paid for the travelers and only paid once trips were booked.
Thanks to the program, employees were able to enjoy vacations in a variety of destinations. They hit the slopes on ski vacations, spent weekends partying in Las Vegas, caught baseball games and basketball games in their favorite teams’ home city, took family trips to other parts of Texas, and enjoyed relaxing Caribbean cruises. Many of the employees had never traveled before, so it was a totally new experience for them. Peak Performance’s travel staff helped them step-by-step through the process, from finding a destination to booking airline tickets and hotels and sending documents and luggage tags. They helped employees navigate through the process of checking in at a hotel, picking up a rental car, and checking in at an airport. The program was a resounding success and lasted for three full years before being discontinued due to a company merger. Employees were happier, and retention rates improved. To this day, the company continues to offer $10,000 travel vouchers for recognition of 10 years of service.
The Peak Performance yearly incentive program can work to improve your company’s retention rate. You can pick the voucher dollar amount — there are no minimums. An initial 5 percent deposit is required for programs over 100 certificates, and we offer a convenient 30-day billing cycle. For more information regarding how this program can help improve your company culture and retention rates, take a look at our sample brochure. Of course, we will be more than happy to create a brochure specifically for your travel incentive program.