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HR still failing to be recognised

HR is still struggling to gain to gain recognition from executives at the top of organisations, according to a survey by consultancy Deloitte. Read more here in this months edition of Resource

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A Completely Free Service

You only pay for an employee if they participate
There is no hidden agenda
There are No fixed costs
This means:
No Management Fee
No Set-up Fee
No Service Costs
No Development Costs
No Retainer

Who exactly are you rewarding – your employees or the Tax man?

Vouchers, have NO TROPHY value for the employee or communication value for the company. Also by giving cash it is costing your company 25% more than you thought you were paying as you have to pay National Insurance!!

A company decides to give 35 employees cash or vouchers nominally worth £200 each.
So they budget for £7000?

WRONG!!
The actual cost to the company, believe it or not is £10,220!!!
47% per cent more than they had budgeted
Breakdown of cost to company
35 Long service Employees get given a gift of £200 each 35 x £200 = £7000.00
35 employees x PAYE income tax at lowest tax level of 22% 35 x £44 = £1540.00
35 employees x Employee’s National Insurance Contribution at 11% 35 x £22 = £770.00
35 employees x Employers National Insurance Contribution at 13% 35 x £26 = £910.00
Total Cost = £10,220.00
Budget £7000 Cost £10,220

Overspend £3,220 or 47% Over Budget

Plus your employees lose as well!!!

Assuming an average voucher redemption rate of 79% and factoring in the cost of Vat – 17.5% which the employees will pay on their purchase, the actual net worth to the 35 employees of their £200 award is only £4305!!! which is 59.5% LESS than the £10,220 it has actually cost the company.
47% over budget for the company yet 59.5% less value for the employee

The golden rule for companies is: Never Mix Remuneration with Reward

2006-£7m Research Survey by the University of Wisconsin into the comparative effectiveness of cash (vouchers/commission/travel) verses non-cash (gifts/merchandise) employee incentive, reward and recognition programmes.
The results make thought provoking and enlightening reading:
Non-Cash Programmes are significantly more effective for:

Increasing Employee Retention and Loyalty
Reinforcing Organisational Values and Culture
Improving Teamwork
Increasing Customer Satisfaction
Motivating Specific Behaviours and Tasks

Cash-Based Programmes are only effective as:
Sales Commission
The results of this independent, impartial, International survey clearly demonstrate that non-cash based programmes are 4 times more likely to be successful than pure cash-based programmes.
Cash is too simple, non-imaginative, inflexible with no recall (trophy value) and ultimately will only create problems as employees confuse their remuneration with their recognition award.

Employees already receive a salary with possible bonuses, therefore in order to maximise the benefit and achieve trophy value the reward element, must be totally separate and be seen to be such.

Transparent Service

Online administration of all aspects of your programme

24 Hour live data link on Service Level Agreements and programme budgets.

Reporting functionality on all sites.

Right of veto on all gifts hosted on your programme site

The Bottom Line
We believe the only fair and appropriate fee is one solely linked to activity - not a payroll tax!

Long service programmes are managed differently, as the fee includes all presentational materials, 24/7
customer care, full help desk support and complete reporting functionality. The fee starts from as little as £10

Every time an employee is rewarded, subject to the nature, complexity and frequency of the programme, there is
a sliding fee scale for recognition programmes of between £0.50p and £2.95

We maximise company communication to every employee at every stage.

What other service providers…..

Send you a quarterly performance report?
Able to benchmark their performance against agreed SLA’s?
Can authenticate and verify your program’s KPI’s?
Checks its prices on a regular basis?
Has a dedicated ISO certified 225 step Implementation Process?
Has a proactive and dedicated Customer Care Team?
Has a Business Relationship Manager who will ring you?
One Source TOTAL RECOGNITION