Rewards, Loyalty & Incentives Programs - Employee & Staff Motivation | Pinpoint

Salary Sacrifice: Myth Busters

davidb — Tue, 29 Nov 2011 00:06:45 +0000

Salary Sacrifice Facts:

1. 39% of employees believe the opportunity to acquire a laptop by salary-sacrifice is the most important and preferred packaging benefit.

Why? They save 30% – 50% plus 10% GST.

This is a benefit that can be provided to employees at no cost to the company.

This is an easy way to align your company’s interests with your employee’s interests.

Myth Busters:

to record client communications or prepare proposals and presentations outside normal work hours: at least in peak periods
to communication remotely with colleagues via email and intranet
to check rosters, schedules, details for the days ahead
to compile activity reports, expense reports etc that they don’t have time for in their busy days in the office.
Most companies can’t afford to provide a computer for use at home. But if your employees want to buy a laptop for home use, why not help them to do so, at no cost to you?
2. “Employees don’t need a laptop at home – we provide a laptop in the office for their use.”
WRONG: They use that laptop in the office. Taking it repeatedly between office and home is inconvenient for the employee and creates data security risks.
3. “The Tax Office doesn’t permit salary-sacrifice to buy a laptop for home use when we’ve provided a laptop to use in the office”.
WRONG. Supplying a laptop for use at work is the same as supplying staff with a desk, a chair, and a phone. The employee’s need to use a computer at home for work purposes is completely independent.
4. “The Government discourages salary-sacrificing for the purchase of laptops and PDAs.”
WRONG. If the government wanted to stop salary sacrificing for laptops, it would have stopped it in 2008, 2009 or 2010 or 2011. In May 2008, the Federal Treasurer announced:
Increased range of products that could be salary-packaged
Clearer definition of the “work-purpose” test – to eliminate excesses that were never intended or justifiable.

So, why choose Pinpoint for Salary-Sacrifice?
Superior, consumer offers. More choice. Refreshed continually
Quality leading brands
Proactive communications to staff, paid by Pinpoint
Emails, website, posters etc
Experience shows that proactive communications will lead to high % of staff taking advantage of various offers
Full compliance with the Tax Act
Security: No paper-docket abuses
Management reporting
Superior customer service
Single points access
Knowledgeable staff
No high-pressure sales people
No risk. Proven and turnkey. Pinpoint is a well established and substantial supplier
Contact us today to find out how Pinpoint can help you with Salary Sacrifice

Employee Loyalty – Give your Employees Real Benefits

davidb — Tue, 09 Aug 2011 07:30:37 +0000

In today’s workforce the notion of employee loyalty is becoming increasingly apparent as employers are competing with each other to attract and retain the best employees. Research shows that companies that don’t offer employee benefits will eventually pay the price and undoubtedly lose key workers to competitors in years to come.

So, how do you earn employee loyalty?

The answer is simple…The best way to earn employee loyalty is by offering an employee benefits program which engages, rewards and incentivises your staff. The idea is simple: keep your staff happy and in return your company will benefit – Remember, a happy employee equals a productive employee!

What type of benefits program can I offer?

Designing the right benefits program for your company requires careful thought. There is no one generic benefits program that can cater for your needs as each company’s requirements and goals are different. Firstly, an effective employee benefits program must link your business goals with the right levers. So, for example, if your company wishes to increase sales and you wish to incentivise your call centre staff to increase sales then you would want to reward staff on certain parameters including but not limited to; amount of calls made, amount of sales made, achievements over thresholds etc. Once you have identified these key parameters you then need to decide how you wish to reward staff. Offering points as currency is a popular method of reward program that is increasingly used across many industries. Employees are awarded points based on set criteria and then redeem these points for a variety of rewards.

Win-Win Situation!

Offering employee benefits is a win-win situation for both employers and employees. By motivating and incentivising your employees through a points reward program, your employees remain engaged, productive and most importantly, loyal!

What Next? i-Points – Employee Benefits Program

i-Points is an online employee benefits program that tailor designs loyalty programs to meet your specific needs whatever your HR strategy may be! i-Points will design, implement and manage your employee benefits program while offering over $120m worth of rewards including over 10,000 merchandise brands, over 50 retail gift cards, and 1000+ experiences.

Five reasons why Salary Sacrifice will always be number one for staff motivation

davidb — Tue, 09 Aug 2011 03:45:47 +0000

Up until 2008, Salary sacrifice was seen as the number one way to show staff that they mattered to a business – and prior to 2008, hundreds of thousands of Australian workers chose to use salary sacrifice as a means to get computers and notebooks at a large discount.

So what went wrong?

The Fringe Benefits Tax ruling by the ATO in 2008, while not killing Salary Sacrifice completely, did serve to create a feeling of uncertainty about the legalities of Salary Sacrifice. Unfortunately much of this negativity was unfounded, and since 2008, employees everywhere have paid the price for this misconception.

But Salary Sacrifice is on the comeback, and here’s why…

1. Salary Sacrifice is manageable

Salary Sacrifice is manageable in every sense – both from the workers position, and from pay roll. For an employee, it means they do not have to add to their credit card debt or monthly interest, and that the purchase will be taken out of their pay in small manageable amounts.

For the organisation, Salary Sacrifice programs can be easy to manage if done through the right provider. Professionals in the Salary Sacrifice and FBT industry can remove the headaches of calculating prices and tax implications, and are well worth talking to about the best way forward.

2. Salary Sacrifice strengthens retention

Helping your staff navigate Fringe Benefits Tax and Salary Sacrifice helps build retention in the organisation. With an effective and exciting Salary Sacrifice program, you’ll have a happy and engaged team. Also, it creates yet another tie to their position at the organisation, and staff are less likely to leave when they know that they have an outstanding Salary Sacrifice arrangement in place.

3. Salary Sacrifice shows staff you care

There really is no reason why an organisation should not have a Salary Sacrifice program in place, and not having one sends the wrong message to your most valuable asset. Thousands of companies in Australia still offer FTB and Salary Sacrifice to their staff – and your staff will know this. Do you really want your staff sitting around asking themselves “why can’t I get Salary Sacrifice” or “how do I get Salary Sacrifice to work for me”? Help them now and show them that their welfare is a company priority.

3. Salary Sacrifice increases quality of life at home

Happy people make better employees – it’s as simple as that. If Salary Sacrifice can be easily organised, sanctioned by the ATO, and set up for your staff to enjoy, then this benefit will show through in their everyday activities, and most importantly, add to their lives at home. Don’t force your employees into more credit card debt when you can be helping them purchase products they need under a legal salary sacrifice program.

4. Salary Sacrifice saves more than any other incentive

When done correctly through under the current guidelines for FTB in Australia, Salary Sacrifice saves up to 50% off RRP in some circumstances. Depending on the buying power of your provider, the prices they can gain on certain products, and the FBT savings that can be achieved when correctly negotiated; Salary Sacrifice can allow your employees to save money, but still have the things they need.

So where can I find Salary Sacrifice information?

The ATO website is the authority on FTB and Salary Sacrifice rules and regulations, but if you’re looking for an all-in-one approach to providing your staff with products under the FTB tax regulations, talking to an FTB specialising agency like Pinpoint is the best way to learn about what your options are – Pinpoint has been a provider of Salary Sacrifice programs for over 15 years and can help you navigate through the tricky business of FTB and Salary Sacrifice.
                                    Contact us today to find out how Pinpoint can help you with Salary Sacrifice

Can salary sacrifice work for your staff?

davidb — Thu, 04 Aug 2011 01:01:38 +0000

Taxpayers Australia Inc.

http://www.taxpayersassociation.com.au

04 August 2011

Salary sacrifice can be a great way for your employees to get a part of their remuneration in a form other than cash, where they agree to take part of their wage as a benefit of some kind, equal in value to the salary it is exchanged for.

Having extra money put into super is a popular option. The upside for staff is that income tax is then based only on the reduced amount of salary that results. However, the amounts contributed to a super fund as part of a salary sacrifice arrangement cannot be accessed until a ‘condition of release’ is satisfied, such as permanent retirement.

If you agree with an employee to go into a salary sacrificing arrangement, the benefits staff get should of course be equal in value to the portion of salary given up. Apart from super, options include a car, shares or payments for expenses such as school fees, child care or home phone costs, for example.

With any fringe benefits, employees may have their own wish list, but you may need to investigate the fringe benefits tax implications.

Superannuation

Topping up superannuation is a popular option for salary sacrifice arrangements. There are several benefits for staff going down this path. For starters, any super put away under such a scheme to a complying fund is not considered a fringe benefit, and is not taxed as such.

A bonus for your business is that such super contributions also give you a tax deduction (if the staff member is under 75 years). And for your employee, these super contributions (within cap limits, see link below) and the earnings from contribution amounts are taxed at 15%.

The fly in the superannuation ointment may however be the concessional caps to contributions from employers (which includes the super guarantee amounts and any salary sacrificed amounts).

To June 30, 2012, the threshold for employees under 50 years age is $25,000, and if over 50 it’s $50,000. After July 1, 2012, it will be $25,000 for everyone, unless the employee is over 50 and has a super fund balance les than $500,000. If contribution caps are exceeded there will be excess contributions tax, which is an additional 31.5% on the amount over the cap figure. See all the details in the Contribution clampdown story.

From a tax point of view, a salary sacrifice deal can be re-negotiated anytime, although with a work contract it is necessary that these arrangements be set up in advance of the employee’s remuneration being earned.

Quick Link:
http://www.taxpayersassociation.com.au/work-you/can-salary-sacrifice-work-for-you.html
Taxpayers Australia is a not-for-profit organisation committed to a fairer and more transparent taxation system for every Australian taxpayer.

Contact us today to find out how Pinpoint can help you with Salary Sacrifice

Can Salary Sacrifice Work For You?

davidb — Fri, 29 Jul 2011 01:08:24 +0000

Taxpayers Australia Inc.

http://www.taxpayersassociation.com.au

29 July 2011

Salary sacrifice can be a great way to get a part of your remuneration in a form other than cash – and not personally pay tax on it.

This is where you agree to take part of your wage as a benefit of some kind, equal in value to the salary it is exchanged for. The upside in you doing this is that your income tax is then based only on the reduced amount of salary that results.

If your employer agrees to go into a salary sacrificing arrangement with you, the benefit you get should of course be equal in value to the portion of salary that you give up. Options include a car, shares or payments for your expenses, such as school fees, child care or home phone costs for example.

There’s little restriction to the sorts of things you can ask for, but while you may have your own wish list, your employer might need to mull over whether or not any of them fall into the fringe benefits tax (FBT) area. This is a crucial consideration for the employer, because while you get the benefit tax-free, the employer has to pay FBT on the value of the benefit.

Some of the common fringe benefits you can salary sacrifice are: - cars - property (including goods, real property such as land and buildings, and shares or bonds) - expense payments (such as the payment of your loan repayments, school fees, child care costs and home phone costs).

On top of these, one of the most popular ones is superannuation. Your employer already has to pay 9% of your salary into your super fund but many people choose to top it up with salary sacrificed amounts to further prepare for their retirement.

FBT exemptions

Basically, there are certain benefits that, because they don’t generate more tax for your employer, might be more appealing. The following work-related items commonly provided in salary sacrifice arrangements are FBT-exempt benefits: - a portable electronic device - an item of computer software - an item of protective clothing - a briefcase - a tool of trade.

FBT-exempt items include tools of your trade, mobile phone, protective clothing and so on (again, check our FBT page for the full list). Laptop computers can be exempt within certain limitations, such as a work-only use of the laptop, and that only one per year can be provided.

Your employer will also need to report certain benefits (known as ‘reportable fringe benefits’) on your annual tax payment summary where the total value of the reportable fringe benefits provided to you that year exceeds $2,000. Excluded benefits and certain types of non-excluded benefits don’t count . Although it is shown on your income tax return it will not affect your assessable income or Medicare levy. The total will however be used to calculate entitlements to income-tested government support programs or benefits.

Superannuation
Topping up your superannuation is a hugely popular option for salary sacrifice arrangements. There are several benefits for going down this path. For starters, any super put away under such a scheme to a complying fund are not considered fringe benefits, and are not taxed to your employer as such. A bonus for your employer is that such super contributions also garner them an extra tax deduction (if you are under 75 years).

And within limits, super funds only pay tax on these contributions at a rate of 15%, which is probably less than the PAYG rates you would otherwise pay if you received the salary as cash. A super fund also only pays 15% tax on earnings (like interest) from the invested money, which again is probably less than what you’d pay if you earned interest on the money yourself.

The fly in the superannuation ointment may however be the new concessional caps to contributions that apply to all ‘concessional contributions’. These are contributions made from pre-tax amounts and include most contributions from an employer (which includes the super guarantee amounts and any salary sacrificed amounts). The threshold for 2009-10 if you’re under 50 years of age is $25,000, and if 50 or over it’s $50,000. If the concessional contributions caps are breached, the excess contributions tax is an additional 31.5% of the amount over the cap figure.

From a tax point of view, a salary sacrifice deal can be re-negotiated anytime, although a salary sacrifice arrangement is only valid for tax purposes if the agreement is in place (that is, your revised work contract is signed by all parties) before the employer starts giving you those new benefits.

WorkCover and salary sacrifice
Compensation for injury arising out of, or in the course of, employment (such as under WorkCover arrangements) will need to be carefully approached with regard to salary sacrifice arrangements.

A WorkCover claim would be expected to be based on the total salary of an employee, not the balance left after a salary sacrificed component – but it would pay to check that this will be the case. Seek advice from your tax and financial adviser.

It may be a case of having to put any salary sacrifice arrangements on hold for the duration of your WorkCover claim, but again, it will be best to get professional advice should you find yourself in this situation.

Quick Link: http://www.taxpayersassociation.com.au/

Taxpayers Australia is a not-for-profit organisation committed to a fairer and more transparent taxation system for every Australian taxpayer.
Contact us today to find out how Pinpoint can help you with Salary Sacrifice

Benefits Can Boost Employee Loyalty

davidb — Wed, 06 Jul 2011 06:44:31 +0000

John Scorza

www.shrm.org Society for Human Resource Management

1 April 2011

The American workforce is growing more dissatisfied and disloyal. Companies that fail to respond to those trends are likely to pay a high price. When the job market improves, those companies will lose key workers to competitors—and suffer from reduced employee productivity.

“We are sounding an alarm,” remarked Ronald S. Leopold, vice president and national medical director for MetLife. Leopold highlighted the results of MetLife’s 9th Annual Survey of Employee Benefits Trends at the MetLife National Benefits Symposium on March 28, 2011, in Washington, D.C.

Despite the dire warnings, the study offered some promise: A well-designed employee benefits package can help restore loyalty, drive employee engagement and encourage workers to stay on the job.

That’s especially important now because a significant number of workers are ready to change jobs. According to MetLife’s research, conducted in the fourth quarter of 2010:

- Overall, 36 percent of all U.S. employees said they hope to be working for a different employer in 2011

- Workers who were inclined to move on cited decreased job security and increased workloads in their current jobs.

The above factors helped drive down job satisfaction and employee loyalty:

- Just 51 percent of employees reported that they were satisfied with their jobs—down from 59 percent in 2008.

- Only 47 percent felt a strong loyalty to their employers—a three-year low, and down from 59 percent in 2008.

- An even lower 33 percent felt that their companies are strongly loyal to them—down from 41 percent in 2008.

Three years ago, in anticipation of an exodus of Baby Boomers retiring from the workforce, companies were focused on retention, Leopold said. But that focus changed for many employers as they became used to a relatively low rate of voluntary turnover during the recession. “Employers are taking their eye off the ball when it comes to human capital,” he said.

Indeed, MetLife’s study suggests that many employers are not even aware of the growing discontent: 51 percent said they believe that their employees have a very strong sense of loyalty to the company. That number has remained essentially the same over the past three years.

Rebuilding Loyalty

These are clear warning signs of problems suggesting that employers should focus on benefits to boost employee satisfaction and engagement. According to the study, employees who are satisfied with their benefits are the most loyal, with 71 percent of those employees reporting that they are very loyal to their employers.

Benefits continue to attract and retain employees, and the importance of benefits to employees across all generations will only increase over the coming year, Leopold predicted. Employees and employers acknowledge the importance of salaries and health benefits to employee loyalty. But other benefits are important drivers of loyalty as well, Leopold said, especially retirement benefits and nonmedical benefits, including life, dental and disability insurance. Yet only about 37 percent of employers recognize this.

“It’s an opportunity for all of us,” he remarked.

Generational Distinctions

Leopold pointed to significant generational differences that will come into play as employers design benefits packages. The study revealed that:

- Older Baby Boomers (ages 55-65) are financially unprepared for retirement.

- Younger Baby Boomers (ages 45-54) are frustrated with their prospects for retirement and could be a threat to workplace productivity.

- Generation X workers (ages 30-45) are the least satisfied with their benefits.

-Generation Y workers (ages 21-29) are anxious to leave.

“We really have four very different perspectives,” Leopold said.

“A one-size-fits-all benefits package is a thing of the past,” the study concluded. “Instead, employers should consider choice, flexibility and customization to engage an increasingly diverse workforce.”

Employers should be careful not to overlook the value of voluntary benefits options, Leopold added. That’s especially true for young workers. Significant numbers of Generation Y and X employees—41 percent and 40 percent, respectively—reported that a choice of benefits that meets their needs is extremely important for creating loyalty.

Communication is the smartest way to leverage a benefits program, Leopold concluded. “If you’re spending money on benefits, you want to make sure your people know about that.”

John Scorza is associate editor of HR Magazine.

Related Article:

Cutting Costs with Voluntary Benefits: A Small Business Solution, SHRM Online Benefits Discipline, December 2010

Quick Link:
SHRM Online Benefits Discipline

Why Employee Engagement?

davidb — Wed, 04 May 2011 23:51:44 +0000

Derek Irvine

Recognize This! – Measuring employee engagement and employee satisfaction are not the same thing.

What’s the point of employee engagement? Why not just measure good-old trusty employee satisfaction?
Have you ever been asked (or asked yourself) these questions? The answers are many.

1. Employee engagement is a “better metric and more strongly related to business outcomes” according to Towers Watson analyst and author of the Mumblr blog, Abhishek Mittal. His analysis showed managers in the top 25% for engagement had half the attrition rate of managers in the bottom 25%. But when satisfaction was used as the metric, managers in the top 25% had an attrition rate only 10% lower than the bottom 25% of managers.

2. Engaged employees have a greater sense of connection and understanding of the meaning of their work. Bret Simmons has said, “It’s very difficult for employees to be engaged when their jobs are mundane and they have not been shown how what they do really matters.” While you can’t always solve for mundane jobs that must get done, you can always help employees understand why those jobs are important and valuable within the bigger picture.

3. Engaged employees experience greater well being. Actively disengaged workers – those so emotionally disconnected they jeopardize the team – experience the same levels of ill health as those who are unemployed. This is a rate far higher than those who are engaged, according to Gallup.

Add to those reasons expectations that increased engagement was the best way to avoid strike and a powerful impetus for trust in the workplace, the value of creating a work environment in which employees want to engage then measuring and reporting on success becomes clear.

What other benefits do you see of measuring and tracking engagement vs. satisfaction?

As Globoforce’s Head of Strategic Consulting, Derek Irvine is an internationally minded management professional with over 20 years of experience helping global companies set a higher ambition for global strategic employee recognition, leading workshops, strategy meetings and industry sessions around the world. His articles on fostering and managing a culture of appreciation through strategic recognition have been published in Businessweek, Workspan and HR Management. Derek splits his time between Dublin, Montreal and Boston. Follow Derek on Twitter at @globoforce.

What’s your “secret sauce”?

davidb — Mon, 02 May 2011 06:55:01 +0000

By Jon Bird

Legend has it that only two people in the world know the secret recipe for Coca-Cola, and that corporate policy bans them from flying in the same plane together, for fear of the formula being lost forever. The directions for Kentucky Fried Chicken’s “11 secret herbs and spices” are also closely guarded. One KFC supplier supposedly blends part of the recipe, while another spice company mixes the remainder, and a computer processing system standardises the final mix, so that neither organisation has the complete formula.

Google’s PageRank algorithm is a modern-day “secret sauce” equivalent. The heavily protected algorithm created by Google founders Larry Page and Sergey Brin is the “magical ingredient” at the heart of the world’s leading search engine.

Of course, a lot of the “secrecy” surrounding these three examples is pure promotional hype, but it serves to enhance the “specialness” of each product. In the case of Coke, the company built sufficient inherent value into its secret recipe that it was able to be used as security against a bank loan in the early years of the 20th century.

When it comes to retail, think of the “secret sauce” as the special ingredient that helps to set a retailer’s offer apart from competitors – making it unique in the minds of customers. It can be a signature product and the story behind it (Levis 501’s), a specific category focus (Toys R Us), a positioning territory (Woolworths “Fresh Food People”), a special style or level of service (Nespresso) or a highly distinctive retail environment (Abercrombie & Fitch). Here are three cases in point:

The “FitPrint System” for sports footwear retailer “The Athlete’s Foot”. The patented system is centred on an electronic device which measures pressure points in a person’s gait. Together with foot measurements the system helps a “Fit Technician” recommend the best choice of shoe for a customer.

A “no-questions-asked” returns policy for US department store Nordstrom. There is a great story surrounding the policy which enhances Nordstrom’s reputation for legendary service. In the mid-70s a customer returned some car tyres to a Nordstrom location in Alaska. Without question, the customer got their money back on the spot, even though Nordstrom had never sold tyres. Why? Because that’s the policy and the employee was empowered to do so. (The back story here is that in 1975 Nordstrom acquired three stores in Alaska from the Northern Commercial Company, which did sell tyres. So when the customer – who had purchased the tyres from Northern Commercial – brought them back to Nordstrom, the return was accepted.

bA forerunner of programs such as Woolworths Everyday Rewards, the Card has engendered an unusual amount of loyalty amongst Tesco customers, and allowed the company to gain incredible insight into shopper habits and purchasing patterns. Along the way, it helped lift Tesco to number one in the UK.

So what’s your secret sauce? What is the special something that sets you apart as a retailer, making you magnetic to customers and distinctive from your competitors? And how can you give it legendary status?

It Pays to Keep Employees Fit

davidb — Thu, 28 Apr 2011 01:07:19 +0000

Preston Diamond, Managing Director and Co-Founder, Institute of WorkComp Professionals Manufacturing.Net – April 26, 2011

Healthier employees lead to lower premiums, according to numerous studies. If companies can help their workers improve their health without cutting benefits or shifting more premium costs to employees, where is the downside? After all, Fortune 1000 companies have been using wellness programs for years to combat the rising costs of healthcare.

So, the question is, why aren’t smaller companies using this proven method to lower their health care costs?

Randy Boss, a risk architect for Ottawa Kent Insurance in Jenison, MI, helps companies implement successful wellness programs, and he says he can understand how employers feel. “They’re frustrated because most likely they have tried things that didn’t work,” says Boss. “There seems to be a wellness vendor on every street corner these days and many use ROIs from Fortune 1000 wellness programs as their own, yet they had nothing to do with that program.”

“All wellness programs are not equal! This is a very important problem and something companies need to understand when selecting the appropriate wellness program for their company.” Boss adds, “Businesses tend to think short-term and not long-term, and expect to see solid and immediate savings on their healthcare costs.”

Yet, the benefits of having healthy workers transcend reduced health care costs, including Workers’ Compensation and lower absenteeism. Healthy workers are less prone to injury and, when injured, they recover quicker than less healthy workers. Conversely, out-of-shape workers are at a higher risk for injury, and healing is often delayed or complicated by other health factors. If workers change and modify their lifestyle and reduce their health risks, medical costs of all types decline.

While this may seem intuitive, the connection between wellness and Workers’ Compensation has been slow to take root. The reasons appear to be numerous, including the divide between risk management departments that oversee Workers’ Comp and Group Health, concerns about expanding the employers’ liability for work-related injuries, and a focus on workplace safety rather than workers’ health. Still, one of the major areas of concern for employers is an out-of-shape employee.

According to a recent Duke University study, the cost of obesity among full-time employees is estimated to be $73.1 billion a year. This is the first study to quantify the total value of lost job productivity as a result of health problems, which is more costly than medical expenditures.

The report recommends that employers promote healthy foods in the workplace, encourage a culture of wellness from the CEO on down, and provide economic incentives to employees who show signs of improvement. And there is evidence that this plan can work for employers.

A University of Michigan study of a Midwest utility company’s workplace wellness program found that over nine years, the company spent $7.3 million for the program and reaped $12.1 million in savings. Medical and pharmacy costs, paid time off and Worker’s Comp all factored into the savings. The study, which took into account a number of costs — including indirect costs of implementing wellness programs, such as recruitment and the cost of changing menus — showed that wellness programs work long-term even though employees aged during the course of the study.

Overall, the program cost the employer $100 per employee. The cost of lost work time, Workers’ Compensation, and pharmacy and medical expenses among employees who participated each year increased by $96, compared with a $355 increase among employees who did not participate.

This is good news for employers. Amid heightened cost pressures and leaner staffs brought about by the prolonged economic downturn, employers need to reduce all types of absences to help maintain productivity. While employers tend to focus their energies on controlling the highly visible health care costs, which are more easily shifted, there are significant opportunities to control other costs with wellness programs.

On average, employers can see a 30 percent reduction in Workers’ Compensation and disability claim costs, according to a review of 42 published studies involving the economic returns of wellness programs. Moreover, wellness programs will reduce the costs of absences that, according to the 2010 Kronos/Mercer Survey on the Total Financial Impact of Employee Absences, add up to 8.7 percent of payroll costs, more than half the cost of health care.

It stands to reason that healthier employees will use less sick time. But ultimately, companies need to make a commitment to helping their employees stay in better shape.

“Employers should focus on health and wellness at work,” says Randy Boss. “Businesses should allocate 2 to 3 percent of their budget to an effective program that includes at least 90 percent participation by employees and a wellness coach on site to effect behavior change.”

Although budget and company size will dictate the type of program a company can undertake, there are five steps that companies should take before launching a wellness program:

Evaluate. Know your cost drivers. Analyze Workers’ Compensation, health care and absenteeism data to identify common issues and trends. Understand the legal regulations governing wellness programs.

Do a workplace assessment. Examine the physical and cultural framework in which the wellness program will operate. Consider opportunities for on-site physical activity, partnerships with community wellness providers, local gyms or health and nutrition classes, on-site vending machines and cafeteria, etc. Identify the interests and motivation of employees as well as barriers to employee participation through surveys, wellness committees, along with an analysis of past efforts.

Educate. For several years, businesses have been shifting more of the costs of health insurance to workers through increased premiums and higher deductibles. Since 2005 workers’ contributions to premiums have gone up 47 percent, while wages have increased 18 percent. Employees are feeling the pinch. Show them how participating in a wellness program can affect premiums as a result of making less use of medical care.

Obtain management support. A wellness program will not succeed without the ongoing support of management. Communicate the goals of the program and assess the commitment of supervisors and management.

Identify goals and metrics for measuring success. When implementing a wellness initiative, senior management will want to see a return on investment. Establishing a consensus on the goals or metrics for measuring the success of the program will help shape the program and ensure its success.

When it comes to implementing a wellness plan at your place of business, it’s really all about risk versus reward. And the rewards can be huge, but only if the plan is properly implemented and the management team is committed to its success.

US rewards worth US$48bn, but 33% unredeemed

davidb — Thu, 28 Apr 2011 00:18:09 +0000

www.thewisemarketer.com

While American consumers earn approximately US$48 billion worth of loyalty points and miles each year, a surprising one in three reward points goes unused, according to a study into the perceived value of loyalty programmes published by Colloquy and Swift Exchange.

The ’2011 Forecast of US Consumer Loyalty Program Points Value’ study found that, out of the approximately US$48 billion worth of perceived value in reward points and miles that American businesses issue each year, at least one-third (some US$16 billion worth) goes unredeemed by consumers.

Put in perspective, the average household that is active in loyalty programmes earns US$622 worth of points each year, yet does not redeem US$205 of that reward value – enough to buy an airline ticket, purchase a week’s worth of groceries, or even to buy a smart phone.

The study examined consumer-oriented reward programmes from a range of merchants, including those from travel and hospitality, retail and financial services. Taken together, the sheer amount of currency issued by this group demonstrates the economic muscle and potential untapped benefits for all involved in rewards programmes.

“American consumers are leaving significant dollars on the table every year,” said Kelly Hlavinka, managing partner for Colloquy. Consequently, according to Nancy Gordon, COO for Swift Exchange, “To help consumers make rewards-based purchases as easily as they buy anything else in their daily lives, marketers need a tool that can translate rewards and points into real ‘mind share’.”

Among the key findings of the new study, which was structured around the existing ’2011 Colloquy Loyalty Census’ study:

The financial services sector is the biggest provider of rewards at US$18 billion a year;

The travel and hospitality sector is the second-largest industry in terms of rewards at US$17 billion a year;

The retail industry, although it makes up 40% of all loyalty programme memberships, issues the smallest value in terms of rewards at only US$12 billion a year;

The number of loyalty memberships in the US is estimated at some 2.1 billion, exceeding 2 billion for first time (up from 1.8 billion in 2009);

The average household has signed up for 18.4 programmes, compared to only 14.1 programmes in 2009;

Despite the increase in overall membership, the average number of programmes in which households actively participate stands at only 8.4;

Overall membership of 2.1 billion represents a 16% increase compared to the 2009 report, but a slowdown from 2007 to 2009 when memberships rose by 34%.

Hlavinka concluded that loyalty marketers have much work to do because, while unredeemed points may translate into short-term corporate savings, they do not equate to long-term customer relationships: “If redemption equals engagement, and engagement delivers customer satisfaction and profit, then loyalty marketers should encourage their members to make the most of their rewards.”

Details of both studies have been made available for free download from Colloquy’s web site – click here (free registration required).

For additional information: · Visit Colloquy at http://www.colloquy.com · Visit Swift Exchange at http://www.swiftexchange.com

Rewards, Loyalty & Incentives Programs - Employee & Staff Motivation | Pinpoint

Salary Sacrifice: Myth Busters

Myth Busters:

So, why choose Pinpoint for Salary-Sacrifice?

Employee Loyalty – Give your Employees Real Benefits

So, how do you earn employee loyalty?

What type of benefits program can I offer?

Win-Win Situation!

What Next? i-Points – Employee Benefits Program

Five reasons why Salary Sacrifice will always be number one for staff motivation

Up until 2008, Salary sacrifice was seen as the number one way to show staff that they mattered to a business – and prior to 2008, hundreds of thousands of Australian workers chose to use salary sacrifice as a means to get computers and notebooks at a large discount.

So what went wrong?

But Salary Sacrifice is on the comeback, and here’s why…

1. Salary Sacrifice is manageable

2. Salary Sacrifice strengthens retention

3. Salary Sacrifice shows staff you care

3. Salary Sacrifice increases quality of life at home

4. Salary Sacrifice saves more than any other incentive

So where can I find Salary Sacrifice information?

Can salary sacrifice work for your staff?

Taxpayers Australia Inc.

Salary sacrifice can be a great way for your employees to get a part of their remuneration in a form other than cash, where they agree to take part of their wage as a benefit of some kind, equal in value to the salary it is exchanged for.

Contact us today to find out how Pinpoint can help you with Salary Sacrifice

Can Salary Sacrifice Work For You?

Taxpayers Australia Inc.

Salary sacrifice can be a great way to get a part of your remuneration in a form other than cash – and not personally pay tax on it.

Benefits Can Boost Employee Loyalty

John Scorza

The American workforce is growing more dissatisfied and disloyal. Companies that fail to respond to those trends are likely to pay a high price. When the job market improves, those companies will lose key workers to competitors—and suffer from reduced employee productivity.

Rebuilding Loyalty

Generational Distinctions

Why Employee Engagement?

Derek Irvine

What’s your “secret sauce”?

It Pays to Keep Employees Fit

US rewards worth US$48bn, but 33% unredeemed