Productivity via paradise - human resource management technique for increased productivity

Want your employees to be more effective at work? Try offering them all unforgettable vacation.

When it comes to inspiring employees to work harder, travel is far and away the most effective motivational tool- even more effective than cash - according to a recent study by Clemson University. On a scale from 1 to 7 (7 being the most valuable), travel incentives were rated a 6.4 by survey respondents. By contrast, cash was rated at 6.0, merchandise 5.41 and status rewards 4.53.

Why would employees value travel over money?

"Travel is an effective motivator because it's guilt free," says Terry Upton, executive vice president of USA Hosts, a destination management company based in New Orleans. "When people receive a cash bonus at work they think of it as part of their salary. They don't generally spend it on themselves."

Unlike cash, travel memories can last a lifetime, notes Upton. "If you are treated to an unforgettable experience, of course, you're going to remember and appreciate the company that made it possible."

Small wonder, then, that 25 percent of all awards - or $5.3 billion - involve travel incentives, according to the Society of Incentive & Travel Executives in New York City.

Who Gets To Play?

Travel incentives used to be the exclusive domain of sales teams - but not any more. Experts say the landscape is changing, and fast.

"In this era of reduced workforces, companies are realizing that everyone within an organization is important. They need to keep all of their top people happy and motivated," explains Peter Edmunds, publisher of Incentives Magazine, based in Los Angeles. "The receptionist who answers the phone politely and efficiently every day is just as important to business as a high-volume salesperson."

Apparently McDonald's feels the same way. "All McDonald's employees are eligible to receive a week in one of the company condos," which are located in Hawaii, Florida, Lake Tahoe and other sunny locales, says Steve Russell, director of human resources at McDonald's corporate office in Oak Brook, Ill. "Every officer is allowed to nominate a certain number of people within his or her department for a trip each year."

McDonald's rewards high achievers with travel on an individual, case-by-case basis. Personal initiative and performance are what garner a nomination for an award, Russell says.

"An employee may just be doing a great job, or someone might come up with an idea that winds up increasing productivity. Either way, an officer will take notice," he explains. "Employees know that if they make the extra effort they'll be rewarded."

Motorola's Award & Recognition Program works in a similar fashion, rewarding top-performing employees with individual travel vouchers. "A manager in any department can nominate an employee that he or she feels has gone above and beyond for the company," explains Pam Wilder, director of compensation and benefits at the firm's Schaumburg, Ill., office. "For instance, it could be a manufacturing operator who comes up with a process that winds up saving the company money by reducing scrap. That person would be nominated for an award."

Time Is Of The Essence

Timing is crucial in a travel incentive program. Employees lose interest and morale drops if the award is given too far down the pike. In years past, companies would aim for one big campaign a year, but that's changing, Edmunds reports.

"Increasingly, we're seeing shortened lead times and an increase in programs that offer individual travel incentives for reaching short-term goals," Edmunds says. Shorter target dates are particularly successful, he notes, because they enable employees to keep their eyes on the prize.

Some companies - such as Sun Microsystems, in Palo Alto, Calif. - empower managers to make on-the-spot award decisions to reward outstanding employees. Sun employees know that by going the extra mile they may earn awards that include travel vouchers to be used with hotels, airlines and restaurants.

Planning A Successful Trip

The destination, type of trip, and length of stay depend on the interests of the company, preferences of the participants, and the budget. However, as a rule of thumb, Edmunds says, most incentive award trips last four to seven days and cost an average of $1,750 per person.

Trips can be awarded individually, as in the case of Sun's plan, so that recipients use the award how and when they'd like. The up side for the company of awarding individual trips is that large numbers of employees are not out of the office at one time.

Travel awards can also be given to winning teams who excel during a campaign. These trips often include presentations, recognition ceremonies and other corporate events on location. The advantage of group events is the relationship building that occurs between employees and the brainstorming for future projects that goes on between the achievers within the organization.

Nearly all companies with motivational travel awards send the spouse along for the ride - and for good reason. The Clemson study found that spouses have a strong influence over an employee's decision to participate in an award program. When asked which type of award they'd be "strongly encouraged" to qualify for, 72 percent of employees polled cited travel.

"We recommend that employees be allowed to bring spouses," says Arnold Light, founder of The Light Group, an incentive management firm based in New York City. "The employee is often away from home, staying late, leaving early, sometimes putting in weekend hours. This is a way for the company to thank the spouse."

McDonald's goes one step further, encouraging employees to take children on the trips. "We're a very family-friendly company," says Russell. "McDonald's really wants an employee's entire family to reap the benefits of the award because it shows that we value them too."

McDonald's not only lets top performers and team players use its condos, it also provides round trip airfare and a vacation stipend.

Creating A One-of-a-kind Reward

Although there are a wide variety of destinations to choose from, the top domestic travel spots for U.S. companies are Florida, California, Arizona, Nevada and Hawaii, according to Incentive's Edmunds. Offshore hot spots include the Caribbean, Mexico, the Bahamas and Italy.

Warm and sunny spots have long been favorite locales. That hasn't changed much over the past 20 years, Edmunds notes. What's new is the growing demand for one-of-a-kind experiences, known as adventure travel. While Outward Bound expeditions remain popular, they are only the tip of the iceberg.

"In the past, companies rewarded outstanding performance with destination trips - usually sun-and-sand getaways," says Edmunds. "In the advent of the great outdoors and environmental awareness, companies want to organize something that individuals can't duplicate on their own." Many incentive recipients are repeat performers who are looking for something new, Upton says. "These trips are about special events. People who receive these awards year after year are no longer content with a big steak, a limo and VIP treatment. It's a matter of been there, done that," he explains. "On their third or fourth trip they're looking for a different kind of experience."

Just how different? Take the 90s spin on the traditional sea voyage. Barefoot pontooning in the Pacific is a hot alternative to cruising the Caribbean, Edmunds says.

How about a long weekend at Fighter Pilots, USA, where Walter Mitty wannabes learn the art of aerial dog fighting in Marchetti fighters in airspace over Genoa, Ill.

Corporate ski buffs who find Vale a tad tame are now opting for four days of heli-skiing instead. And it's a week of ice fishing that reels them in to Minnesota.

The trend toward adventure has even upped the ante in exotic locales. Alaska, once thought an adventurous destination in itself, now attracts travelers by featuring hot air ballooning across the state.

While daredevil destinations are gaining popularity, it's common for companies to build a smorgasbord of options into a traditional destination.

"Companies are trying to offer a little something for everyone by featuring unusual side trips at traditional destinations," says Upton. "There's such a diversity of people in the workforce today that one type of trip rarely fits all. People are looking for choices now."

For example, a trip to Arizona, he says, still offers traditionalists plenty of green links and pool laps, but no longer are thrill seekers left cold. "We'll organize a strenuous hike through serious country, with some very serious critters," Upton says.

Building Loyalty

Unlike other awards, such as cash and merchandise, the effects of incentive travel last a much longer time.

"Incentive travel enables a company to reward its employees with something that monetary awards just can't match-an unforgettable once-in-a-lifetime experience," says Edmunds. "The objective is to award performance, and the result is increased camaraderie, morale and loyalty."