Silicon Valley has turned workplace incentives into an art form. From foosball tables to in-cafeteria sushi chefs, from napping pods to bike repair shops, offices in the San Francisco Bay area can amuse workers for hours on end. But when it’s time to get down to business, companies such as Facebook and Adobe know that one of the best ways to inspire a group to perform is by offering a chance to travel.
Incentive travel is a $14 billion industry. The Incentive Federation Inc. says that 38% of all American companies with revenues of more than $1 million offer some sort of incentive travel. Between the fall of 2014 and the fall of 2016, the average amount spent on incentive travel by companies increased by 10%, with trips to different U.S. cities, Mexico and even Europe being the most popular.
The Millennial Factor
Those numbers will only increase as younger employees join the work force. Members of the largest generation (estimated 79 million) overwhelmingly want to travel abroad as much as possible. At the same time, the Deliotte Human Capital Trends 2016 study says that one in four would be willing to move to a new company right now if they felt it was a better fit. A company that offers millennials a chance to travel for hitting sales goals, garnering the most referrals, enhancing product awareness or achieving another metric is a company at which workers will want to stay.
Employers will want those employees to stay, as well. A 1997 study conducted in England showed an 18% increase in productivity when employees are offered travel incentives. Those trips can have a positive effect on the abilities of employees, too. According to Psychology Today, travel generally, an international travel specifically, helps make people less emotionally reactive to day-to-day changes, since it grants some perspective to the traveler. Multiculural experiences, such as exploring a new country, also can spark creativity. Essentially, incentive travel not only can inspire employees to new heights before they take their well-earned vacations, but it can also can give them important skills to become event stronger contributors to the team upon their return.
It’s all about the experience
And why do employees like incentive travel – and in many cases prefer it to cash-equivalent bonuses? The experiences. Whether it’s a ticket to the Super Bowl, a wine tour through the French countryside or even a zip-line adventure through the Costa Rican jungle, an incentive package can’t be spent paying off bills or contributing to a retirement fund. These types if trips force the type A personalities, the workers who often are the most likely to hit those incentives targets, to stop and turn their focus elsewhere. The hard-headed and driven sometimes have to be persuaded to take time off; giving them a free chance to do so will ensure that your top contributors are getting the rejuvenation time. Plus it sure beats lunch-hour foosball tournaments.
– Article courtesy of Corporate and Incentive Travel Magazine, July 2017