Globalization of Non-Cash Incentive Programs Speakers: Toni Ashby Product Manager – Global Rewards Maritz Jeroen Tetteroo Localization Manager Language Solutions
Globalization of Non-Cash Incentive Programs
Speakers:Toni AshbyProduct Manager – Global RewardsMaritz
Jeroen TetterooLocalization ManagerLanguage Solutions
• Where do I start?
• Is it complicated?
• What do I need to consider?
• Let’s start with what we know about planning any incentive program and discuss what should be tailored across the globe.
Running a Non-Cash Global Program
Program Considerations
• Program Design
• Pay Out Structure
• Technology Platform
• Communication
• Rewards
Program Design• What is the program goal?• How will you structure it?
– Individual or team-based?– Top performer vs. everyone earns– Annual program vs. shorter duration
• Equitable program for all• Understand the cultural impact for choices
Pay Out Structure• How much are you willing to award for desired performance?
– Will that be motivating to the participant?
• How often will points be deposited?• Do you need to consider purchasing power parity?
Technology Platform
• Communication
• Administration
• Data/Information needs
• Business logic
• Localize Rewards Offers
Build a business case
• Use data and facts to support your decision to translate
• Get support for your budget
• Understand the relationship between budget and achieving your business objective
Meaning of Work
Meaning of Work NeedsNeeds MotivationMotivation Individual /
Group BehaviorIndividual /
Group Behavior
Culture
Values / Attitudes / Norms
Appropriate Motivators
(Intrinsic / Extrinsic)
Appropriate Motivators
(Intrinsic / Extrinsic)
International Management, Managing Across Borders and Cultures, Helen Deresky, 2006
Geert Hofstede’s Cultural Dimensions
“Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.” - Hofstede
•5 dimensions:– Power Distance– Uncertainty Avoidance– Masculinity – Individualism– Long-Term Orientation
Hofstede’s Cultural Dimensions
Rule Structure
Payout Structure
Rule Structure
Business Objective
Internal Communication
CountryWorkforce Population
% of global workforce
Primary Language
% of Pop.
Secondary Language
% of Pop.
Strategy
Translate
Regionalize
Translate
Translate
Regionalize
Regionalize
Localize
English 86% Spanish 14%
MalayChinese/English
HebrewEnglish/ Arabic
French
Chinese English
Hindi English
Japanese
Decision making framework Country
Workforce Population
% of global workforce
Primary Language
% of Pop.
Secondary Language
% of Pop.
Strategy
USA 8640 54%
Malaysia 950 6%
Israel 1250 8%
France 300 2%
Singapore 350 2%
India 400 2.5%
Japan 704 4.5%
Decision matrix
Culturally different from the USCulturally similar to US
High Translation Priority
Low Translation Priority
Singapore
Germany
France
Taiwan
Israel
India
ChinaJapan Korea
Rewards• Must cater to Cultural & Economic Diversity
– Local Customs, styles, and trends– Employee demographics– Mix of Awards– Local language – Logistics
Keys to Success
• Local Ownership• Every country has laws which
may or may not permit sales incentive programs
• Taxes, i.e.., FBT in Australia• Localization of languages and
other program components
Case History – Global Technology Company• Goals
– Gain Market Share and expand incentive efforts
• Solutions– Technology allows for centralization, with local customization– Offer rewards that are relevant and local
• Results– Increased gross profit 13 % per unit sold– Increased ROI of 11 to 1– Increase participation & Data collection for additional marketing
Global Technology Company Pre-Sale Call Centers• Goals
– Solve international fulfillment issues– Increase reward appeal
• Solutions– Centralized information and point site– Local fulfillment of meaningful rewards
• Results– Inside sales growth of 50% YOY– 4% over stretch target in 1st quarter– Greater participant understanding
What we’ve learnedGlobal programs:• Higher engagement rates• Redemption rates as high as 75% within 90 days• Receive more feedback/inquires from non-
domestic audiences• Higher achievement rate outside US
Global Programs Work
• Engage your global workforce
• Grow your business in global markets
• Gain valuable market insights
• Challenges but can be overcome and well worth the effort
• Cater to similarities of global workforce while balancing local uniqueness
Contacts:Jeroen TetterooSenior Localization ManagerLanguage [email protected]
Toni AshbyProduct Manager – Global RewardsMaritz, [email protected]