Creating a global rewards program that works for everyone in every corner of the world has always been challenging.
Driven by national, regional, and cultural differences and behaviors, employee rewards require tailored solutions that drive engagement and deliver delight. With these factors in mind, it’s essential to explore the options that resonate most effectively across various regions.
We’re answering the most common questions about global rewards to help create a program that truly connects with employees.
Which type of global reward works best?
Creating a successful rewards program requires a clear definition of goals and objectives, an understanding of participant demographics, and consistent tracking, analyzing, and adjusting the program to achieve the intended outcomes.
Once the program rules are defined, it’s time to develop a catalog that appeals to the broad demographics of your global organization. It’s important to consider the participant demographics and geographical location and curate a catalog that supports the program’s goals and meets the participant’s reward desires. Practical factors, such as how to deliver these rewards in different regions, should also be taken into account.
A data-driven approach can help make these decisions. Partnering with reward solution providers who educate and share insights into local markets and customs can provide the data needed to curate your reward selection.
Solution providers can help explain which brands are popular, how cultural factors influence redemption choices, what categories of rewards employees in different regions prefer, and differences in taxation and reward valuations.
How do businesses account for regional preferences and cultural differences?
Designing a global rewards program has its challenges. One of the biggest hurdles is avoiding personal bias in selecting rewards. It’s easy to fall into the trap of choosing rewards based on what the program manager thinks is valuable. There is a need for research and education on favorite brands, local brands, and local trends.
Too often, global reward selections are disconnected from what the end recipients actually want. This is especially true when working with cultures or regions that are unfamiliar to the person setting up the program.
Navigating regional preferences and cultural differences is one of the trickiest parts of running a global rewards program.
“One of the biggest challenges is companies trying to copy-paste a program that works well in one country into another. There are mandatory adjustments to brand, trends, and standard of living,” says Julien Rochard, Head of Global Partnerships and Platform Content at Virtual Incentives.
Replicating a successful rewards program across multiple regions might be tempting, but this approach often runs into problems due to cultural differences, market conditions, or even infrastructure issues.
For example, while Airbnb is popular in some countries, it’s less appealing in regions where staying in a stranger’s home isn’t culturally appropriate.
Local holidays are also worth considering to make your rewards program culturally relevant. Timing rewards to coincide with local holidays or cultural events, like Christmas or Eid, can pay off with deeper engagement and satisfaction.
Read More: What Gifts Your Millennial Employees Really Want This Holiday Season
Logistics also pose a significant challenge. What works smoothly in one country might run into issues in another. In some countries, infrastructure such as internet access, mail delivery, taxes, or local regulations can make it difficult to send or receive a reward. In these markets, digital rewards like e-gift cards are a smarter option.
What seems like a small reward in one country might be very generous in another, so programs must adjust to local economic conditions. It’s important to be mindful of the value of the reward for each territory.
Simply copying and pasting rewards programs leads to lower engagement and even dissatisfaction among employees who feel that the rewards don’t align with their needs or customs.
Regularly reviewing redemption data and gathering end-recipient feedback can help you stay on top of trends and adjust as needed.
Why is a mix of local and international brands important?
A well-rounded rewards program often includes both international and local brands.
While big global names like Amazon, Google Play, Expedia, and Airbnb have broad appeal, local brands are important for making the rewards relevant and attractive to recipients in different regions. Walmart is a top brand in North America, but what is Walmart’s equivalent in popularityin India, Germany, or Brazil?
This mix is important because many end recipients express a growing preference for local brands, “Made in” country, and young local entrepreneurs. They often feel more personal and culturally relevant.
Including local and regional options ensures that your program resonates with recipients and shows an understanding of the unique brands offered in their country only. It can also help avoid the pitfall of offering rewards with limited utility or appeal to their region.
If your employees value a particular brand or retailer, offering a gift card for that brand can create a more personalized experience.
For example, if your program has a large population in Australia, you could source top local brands like Coles. In India, recipients prefer having Flipkart, which ranks up to 40% of redemption and is country-specific. Focusing on local or regional brands over global brands will foster engagement and deliver delight to your program participants.
How do you tailor global rewards to different employee personas?
Employees have varying preferences based on their demographics, personalities, lifestyles, and values. A one-size-fits-all approach won’t engage everyone equally, especially given new employee trends such as younger employees and remote work.
“Flexible Frankie” might prefer a Visa Prepaid Debit Card card that offers the freedom to spend on anything, anywhere, making it an ideal option for anyone who values choice and flexibility. On the other hand, “Loyal Logan” might appreciate a gift card tied to their favorite brand or retailer, especially if it offers added benefits like discounts or exclusive offers.
Tailoring rewards to different personas allows companies to cater to the unique preferences of their workforce.
What role do reward providers play in educating companies?
Reward providers =play a key role in educating companies about what works best in different markets. A global program requires an understanding of each country’s demographics, cultural preferences, logistics capabilities, and taxation policies as they design programs and curate rewards catalogs that maximize engagement and satisfaction.
Rewards providers can advise on which brands offer the best value, which rewards are culturally appropriate, and how to adjust offerings based on local economic conditions.
This guidance is crucial for companies with limited insights into every region they operate in. It helps them avoid potential pitfalls and make more informed decisions about their reward programs.
Continuous global rewards program adaptation
A global rewards program should never be set on autopilot. Markets shift, cultural trends evolve, and employee preferences and demographics change over time, making continuous adaptation a vital component of a successful rewards program.
Staying engaged with the program’s performance and making regular adjustments keep it relevant and impactful.
This could involve:
- Introducing new brands that align with evolving employee interests
- Phasing out rewards that have lost their appeal
- Adapting the program to align with broader company values like sustainability or diversity.
Building a better global rewards program
Building a global rewards program that resonates with your employees means balancing flexibility with cultural sensitivity, logistics, tax laws, and making decisions based on solid data. Work closely with a global reward solution provider that has local expertise. Stay adaptable. Continuously refine your approach.
These steps help you create a rewards program that meets your company’s goals and keeps your employees engaged and motivated.