Incentive travel programs fit perfectly into many companies’ overall reward strategy. There are three things you should know before implementing an incentive travel program for your business.
1. What is Incentive Travel?
Incentive travel is a form of non-financial performance recognition. Instead of rewarding your business’s best and brightest with bonuses, stock options or profit sharing, top performers are treated to travel. Trips range from a couple of nights in a neighboring city to a week or more in an exotic destination. No matter the scale of the experience, all expenses are paid for by the business.
Businesses commonly use incentive travel as part of a broader incentive program to encourage employees meet individual and company goals. Most corporate incentive travel is designed to motivate and reward employees. However, some companies design programs to reward business partners as well. This could include loyal customers, high-performing distributors or other valuable external teams.
2. Employees Prefer Travel
When building or redesigning an incentive plan, your business should consider employee preferences. According to the Incentive Research Foundation’s 2016 research, in many cases, employees prefer experiential rewards, like travel, over financial ones.
Of course, this may be different for your business. Discuss potential changes to your incentive program with your employees to determine what tactics have the most motivational potential. You’re looking for a combination of large and small rewards that increase loyalty and productivity in the long- and short-term.
3. Types of Incentive Travel
There are many spectrums on which incentive travel can fall. Your program should include a solution that’s best for your business and employees.
- Completely vacation-like or focused on networking and continued education
- Destination-based or planned around a specific event, like the Kentucky Derby
- Planned for individual employees and their families or groups of employees
- Scheduled itinerary or relaxed, flexible outline