Globalization of Non-Cash Incentive Programs

Speakers:Toni AshbyProduct Manager – Global RewardsMaritz

Jeroen TetterooLocalization ManagerLanguage Solutions

• Where do I start?

• Is it complicated?

• What do I need to consider?

• Let’s start with what we know about planning any incentive program and discuss what should be tailored across the globe.

Running a Non-Cash Global Program

Program Considerations

• Program Design

• Pay Out Structure

• Technology Platform

• Communication

• Rewards

Program Design• What is the program goal?• How will you structure it?

– Individual or team-based?– Top performer vs. everyone earns– Annual program vs. shorter duration

• Equitable program for all• Understand the cultural impact for choices

Pay Out Structure• How much are you willing to award for desired performance?

– Will that be motivating to the participant?

• How often will points be deposited?• Do you need to consider purchasing power parity?

Technology Platform

• Communication

• Administration

• Data/Information needs

• Business logic

• Localize Rewards Offers

Build a business case

• Use data and facts to support your decision to translate

• Get support for your budget

• Understand the relationship between budget and achieving your business objective

Meaning of Work

Meaning of Work NeedsNeeds MotivationMotivation Individual /

Group BehaviorIndividual /

Group Behavior

Culture

Values / Attitudes / Norms

Appropriate Motivators

(Intrinsic / Extrinsic)

Appropriate Motivators

(Intrinsic / Extrinsic)

International Management, Managing Across Borders and Cultures, Helen Deresky, 2006

Geert Hofstede’s Cultural Dimensions

“Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.” - Hofstede

•5 dimensions:– Power Distance– Uncertainty Avoidance– Masculinity – Individualism– Long-Term Orientation

Cultural Distance per country

Hofstede’s Cultural Dimensions

Hofstede’s Cultural Dimensions

Rule Structure

Payout Structure

Rule Structure

Business Objective

Internal Communication

 CountryWorkforce Population

% of global workforce

Primary Language

% of Pop.

Secondary Language

% of Pop.

Strategy

Translate

Regionalize

Translate

Translate

Regionalize

Regionalize

Localize

English 86% Spanish 14%

MalayChinese/English

HebrewEnglish/ Arabic

French

Chinese English

Hindi English

Japanese

Decision making framework Country

Workforce Population

% of global workforce

Primary Language

% of Pop.

Secondary Language

% of Pop.

Strategy

USA 8640 54%

Malaysia 950 6%

Israel 1250 8%

France 300 2%

Singapore 350 2%

India 400 2.5%

Japan 704 4.5%

Decision matrix

Culturally different from the USCulturally similar to US

High Translation Priority

Low Translation Priority

Singapore

Germany

France

Taiwan

Israel

India

ChinaJapan Korea

Rewards• Must cater to Cultural & Economic Diversity

– Local Customs, styles, and trends– Employee demographics– Mix of Awards– Local language – Logistics

Keys to Success

• Local Ownership• Every country has laws which

may or may not permit sales incentive programs

• Taxes, i.e.., FBT in Australia• Localization of languages and

other program components

Case History – Global Technology Company• Goals

– Gain Market Share and expand incentive efforts

• Solutions– Technology allows for centralization, with local customization– Offer rewards that are relevant and local

• Results– Increased gross profit 13 % per unit sold– Increased ROI of 11 to 1– Increase participation & Data collection for additional marketing

Global Technology Company Pre-Sale Call Centers• Goals

– Solve international fulfillment issues– Increase reward appeal

• Solutions– Centralized information and point site– Local fulfillment of meaningful rewards

• Results– Inside sales growth of 50% YOY– 4% over stretch target in 1st quarter– Greater participant understanding

What we’ve learnedGlobal programs:• Higher engagement rates• Redemption rates as high as 75% within 90 days• Receive more feedback/inquires from non-

domestic audiences• Higher achievement rate outside US

Global Programs Work

• Engage your global workforce

• Grow your business in global markets

• Gain valuable market insights

• Challenges but can be overcome and well worth the effort

• Cater to similarities of global workforce while balancing local uniqueness

Contacts:Jeroen TetterooSenior Localization ManagerLanguage Solutions314-725-3711jeroen@langsolinc.com

Toni AshbyProduct Manager – Global RewardsMaritz, Inc.636-827-3957toni.ashby@maritz.com