Have You Included Incentive Travel Packages in Your Financial Planning This Year?
Whenever a new year rolls in, businesses get busy with finalizing or unveiling their financial plans for the next quarters.For 2016, studies show that some of the areas that will receive top allotment include I.T., data management and information security. Another component that is expected to receive increased spending is business travel, with group trip volume predicted to surge by 3.1 percent according to Global Business Travel Association.
The demand for corporate group travel is rising, in huge part because more and more businesses today have established incentive trips as one of the main drivers of their talent management strategy. Investing in incentive travel packages has always been a must-have for future-looking organizations. But in the recent few years, a bigger number of organizations have preferred travel rewards more than merchandise or cash bonuses. One reason behind this trend: Business owners have seen how the experience of travel is remembered for a longer time compared to material gifts or cold cash.
Travel incentives, guided by a solid talent management strategy, can offer the following returns to businesses:
- Motivate employees to achieve specific and measurable targets and milestones
- Grant rewards to top players
- Attract in-demand talent and retain high-value employees
- Highlight the value of high-performing individuals which can inspire collective improvement
- Manage competitive risk by building a stronger and high-achieving team
- Increase productivity across the organization
Travel incentives work great for targeting short-term and specific objectives. Let’s say you need your team to achieve this particular number of sales, a certain percentage increase in profits or a new service rating minimum. If you’ve often offered cash rewards for those who have reached more than the quota, try offering a travel incentive this year. Studies have shown that the possibility of a free trip to a holiday destination drivesbetter results and performance from employees than monetary incentives.
Another measurable ROI you can expect from investing in a travel incentives program that’s relevant to your team is the significant cost savings it can bring. The cost savings may come from reduced absenteeism. The more motivated a workforce is, the more quality working hours they put in. Another source of cost reduction is the loyalty of the staff. Recruitment and turnover are two of the costliest HR activities, and you can minimize the spending for both by simply increasing your employee retention rate. So yes, sending top performers someplace nice may require serious funds, but you’ll eventually see the spending as an investment rather than a cost once you calculate the returns from reduced business costs.
Travel incentives are an effective way to show your employees how much you value them and how you recognize the value they bring to the table. When you make this position clear, you can look forward to enjoyingthe benefits of having a motivated, highly productive and loyal team this year and the next.