Name: Adelson B. Arado ID No.

: 190000002087
Code & Subject: BA211 Human Resource Management February 29, 2020

Incentive Plans for fun Travel

I. Introduction

The programs will generate workplace engagement and encourage workers to do well for
opportunities to reward businesses. In the creation of reward programs, businesses in several fields were
innovative, culminating in the receiving of the Highest Motivator Awards from the magazine Reward. A
study of two of the recent winners reveals the variety in proposals.

Pappas Establishments in Houston hires more than 10,000 staff with establishments like
Pappadeux SeaFood Kitchen, Pappas Pizza and others. Pappas has produced an uncommon role inside
their management structure as a big part of creating and sustaining a "friendly community." Each
employee is involved in the development and execution of events that strengthen Pappas ' performance-
oriented, enjoyable community. Through stressing this philosophy, the Company hopes to provide
customers and staff with restaurants in Pappas. "Rising Stars" is a popular reward scheme. Employees
working as bartenders, food servers, and in other customer contact jobs receive $20 gift certificates
weekly for such actions as favorable customer comments, attendance, and working extra shifts as needed.
But employees without primary customer roles are not forgotten, because Pappashas a “Kitchen
Superstars” program for its dishwashers, cooks, and clean-up workers, who can receive gift certificates
also. Purchased from well-known retailers such as Target, Blockbuster, and other retailers located near
Pappas restaurants, the gift certificates provide immediate reinforcement for positive actions, as well as
providing an easily used reward.

Washington Mutual, Seattle-based insurance company, utilized advertising bonuses successfully

in a very different work climate. The company has developed many reward plans in order to enable
selling people to generate a greater amount and value of house loans. The main plan included points for
loan product sales from the sales representatives. Sales reports have been monitored and reported
regularly for workers so that everyone understands where they are in contrast with other sales officers.
The 400 top-producing sales people became members of the President’s Club. To provide special
recognition of their accomplishments, the President’s Club members were rewarded with a five-day trip
to Cancun. Unique entertainment events, jungle safaris, and other activities were participated in by the
club members and key executives. The Cancun trip was both an incentive to encourage performance and a
reward for the top sales performers.

Many other companies spend considerable time and money on different incentives. The main
emphasis of these initiatives is to empower and award output as well as those in Pappas Restaurants and
Washington Mutual.

II. Issues Underlying the Problem

1. Why might the use of incentives in the form of gift certificates be better than just providing cash to
employees?
2. What are some advantages and disadvantages of a sales incentive program in which the top performers
receive a trip or other large re-ward, while other sales individuals receive lesser or different types of
rewards?

III. Alternative Solutions to the Problem

1. Money is often used to pay bills or just to pay without any knowledge of the money bought. Money in
the hand of the employee is often just mixed with money. In fact, penalties and other expenses greatly
reduce the amount "take home" if cash is charged by an individual in a paycheck. The employee will
purchase something with a gift certificate and think it was the employee who received that item. The
employee could purchase anything he needed or something that lasts a long time and could have unique,
long-term ties with the employee.

2. The major advantage of a revenue incentive program for top performers is that the greater payout will
inspire others to strive to achieve that amount of incentives. The bigger award would also give top
performers a special feeling and recognition of the company.

The main disadvantage of a sales incentive program where the top performers receive a large reward
compared to others is that the employees receiving the lesser rewards might be jealous. Another
disadvantage is that if employees are competing against each other for a larger award they might be less
likely to work together as a team. This would be especially true if all employees could not receive the
larger reward, just a specified number.

V. Recommendations

As a millennial, reward points, cash bonuses and incentive travel is a perk that companies use to boost
employee buy-in, engagement and productivity. The theory is that when employees are highly motivated
to increase certain activities, they are more likely to put in the extra effort to hit the targets that drive the
company toward larger profits. Incentive travel programs are commonly used to help sales teams become
more successful, but nearly any industry, organization or department can leverage this strategy to address
productivity gaps or tackle big action items. When a team travels together, they share their memories and
adventures together. This helps them to bond better. Also, this provides a good platform for people to
discuss business matters in an informal environment. They are able to understand each other in an entirely
new perspective and this helps them to work better later on.

Hard cash is one of the most common, and according to statistics, least effective ways to reward
employees. The money is often treated as part of a salary and is spent on bills or household items. In
contrast, a desirable travel experience is proven to inspire and motivate employees. In addition, the
memory of a fantastic trip will last much longer than a cash bonus, fostering feelings of gratitude towards
the company.

Non-cash incentives is rapidly growing among businesses. With such a high percentage of businesses
incorporating non-cash incentives into their growth strategies, it is imperative that businesses continue to
invest resources into these forms of compensation. The positive correlation between revenue and
incentive compensation use indicate that incentive programs are indeed working. Specifically, incentive
travel and merchandise/gift cards are the prominent rewards given to sales staff.

VI. Factual Experience

In my almost 6 years of working I never experience and I wish to experience that kind of
incentive, a travel incentive. I only experience employee recognition as an employee of the month. I
received a box of chocolate.