The recent Incentive Federation industry study highlights the tremendous opportunity and challenge facing the Incentive, Rewards, and Recognition (IRR) industry: the estimated dollars spent on non-cash awards exceeds by a magnitude of 10X or more the amount of estimated combined revenue of all industry recognition, loyalty, incentive company, gift card, etc. companies in the industry. One can only conclude that the remainder of the business is sold through consumer retail channels because of the low-level of IRR industry awareness.
See RRN: IFI 2022 Study Pegs IRR Industry at $176 Billion
Of the estimated $176 billion spent on incentives, rewards, recognition, incentive travel and corporate gifting in the US, gift cards, including e-cards, are the most generally used of all non-cash rewards, according to the study. Award point programs are the second most frequently used form of non-cash awards, followed by travel for sales and channel incentive programs, with brand name and logoed merchandise most prevalent for client gifts. Two thirds of companies with revenues of more than $1 million annual reported using brand-name and/or logoed merchandise for business gifting. It is quite possible that much of this is purchased through retail channels.
The estimates are based on a national sample of 1,000 business executives responsible for non-cash incentive programs in companies with at least $1 million in sales. Companies with revenues from $1 million - $10 million represented 91% of businesses in the overall sample. The study was conducted by Richard Garlick & Associates.
The study also found plenty of room for growth for the use of non-cash rewards:
- 55% of businesses using sales programs and 70% of companies with employee programs use non-cash rewards.
- Non-cash customer loyalty programs are used in 55% of firms, while 48% of companies use non-cash channel/distributor/partner programs.
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Education, Certifications, and Information to Activate
Brand Media and Enterprise Engagement
A complete learning, certification, and information program and a course syllabus for educators.
Resources: The Brand Media Coalition, the only guide to the story-telling power of brands and where to source them for business, event, promotional gifting, and rewards and recognition. Enterprise Engagement Solution Provider Directory. The only directory of engagement solution providers covering all types of agencies and tactics as well as insights on how to select them.
Communities: The Enterprise Engagement Alliance and Advocate and the Brand Media Coalition free resource centers offering access to the latest research, news, and case studies; discounts, promotions, referrals, and commissions, when appropriate to third-party solution providers from participating coalition solution provider members.
Training and Certification
Enterprise Engagement Alliance Education: Certified Engagement Practitioner; Advanced Engaged Practitioner, and Certified Engagement Solution Provider learning and certification programs on how to implement Stakeholder Capitalism principles at the tactical level.
International Center for Enterprise Engagement: The only training and certification program for ISO 30414 human capital reporting and ISO 10018 quality people management certification.
The EEA offers a complimentary course syllabus for educators.
This is the definitive implementation guide to Stakeholder Capitalism, written specifically to provide CEOs and their leadership teams a concise overview of the framework, economics, and implementation process of a CEO-led strategic and systematic approach to achieving success through people. (123 pages, $15.99)
The first and most comprehensive book on Enterprise Engagement and the new ISO 9001 and ISO 10018 quality people management standards. Includes 36 chapters detailing how to better integrate and align engagement efforts across the enterprise. (312 pages, $36.)
10-minute short course: click here for a 10-minute introduction to Enterprise Engagement and ISO standards from the Coggno.com learning platform.
• The Engagement Agency at EngagementAgency.net, offering: complete support services for employers, solution providers, and technology firms seeking to profit from formal engagement practices for themselves or their clients, including Brand and Capability audits for solution providers to make sure their products and services are up to date.
• C-Suite Advisory Service—Education of boards, investors, and C-suite executives on the economics, framework, and implementation processes of Enterprise Engagement.
• Speakers Bureau—Select the right speaker on any aspect of engagement for your next event.
• Mergers and Acquisitions. The Engagement Agency’s Mergers and Acquisition group is aware of multiple companies seeking to purchase firms in the engagement field. Contact Michael Mazer in confidence if your company is potentially for sale at 303-320-3777.
Enterprise Engagement Benchmark Tools: The Enterprise Engagement Alliance offers three tools to help organizations profit from Engagement. Click here to access the tools.
• ROI of Engagement Calculator. Use this tool to determine the potential return-on-investment of an engagement strategy.
• EE Benchmark Indicator. Confidentially benchmark your organization’s Enterprise Engagement practices against organizations and best practices.
• Compare Your Company’s Level of Engagement. Quickly compare your organization’s level of engagement to those of others based on the same criteria as the EEA’s Engaged Company Stock Index.
• Gauge Your Personal Level of Engagement. This survey, donated by Horsepower, enables individuals to gauge their own personal levels of engagement.
For more information, contact Bruce Bolger at Bolger@TheEEA.org, 914-591-7600, ext. 230.