Outsourcing trends and continued growth in emerging markets, combined with increased globalization have changed the cultural makeup of the average workforce. In 2004, multinational companies based in the United States employed 8.3 million people abroad, about one-third of their total workforce according to the U.S. Department of Commerce’s Bureau of Economic Analysis. Some U.S. multinational companies even have as much as two-thirds of their employee population based in other countries. This “global” workforce has created a challenging situation for companies trying to balance worldwide goals and local realities.
Over the last three to five years, there has been a shift in corporate global mindset due to this changing work environment. Companies are looking for incentive and recognition solutions that include all their employee and channel partners across the globe.
Several trends have begun to emerge that will likely shape future global programs. A major trend is the increased demand for global incentive and recognition solutions. Incentive and recognition programs have long been prevalent in the United States, but recently companies have realized the important role that global employee recognition and motivation can play in achieving their overall business objectives. Recognition programs in particular are becoming more popular in Asia, a high growth region. Some could argue that this recent rise in popularity is due to the increased presence of multinational companies. As more and more companies expand its operations abroad, its home culture increasingly influences the local business culture.
Interestingly, another growing trend is the development of a more homogeneous workforce within the younger generations. As students, many young adults are studying abroad and participate in global social networks prior to starting their careers. Once in the workforce, these employees are continuously exposed to global society via the Internet, e-mail and blogs, as well as personal interaction with colleagues in other countries and regions.
These global channels, like MySpace and YouTube, also expose this workforce to sports, entertainment and business leaders that are rewarded for individual achievement, thus placing the individual above the team. This interaction fosters an individualistic mindset which is ideal for motivating employees with an incentive or recognition program. When employees ask “what’s in it for me,” they are receptive to motivation strategies. Companies that answer the question by offering personally meaningful rewards will receive higher achievement from its workforce.
The best way to motivate this global workforce is to offer choice. A wide selection of merchandise, vouchers, experiential and travel awards that are continually updated to reflect the latest global and local styles and trends will provide a variety of options to appeal to individual preferences. This emerging individualistic attitude overall is leading to a more homogeneous workforce worldwide – a younger generation of workers that participates in a global society, unlike the more traditional, locally-focused older generations.
Companies can begin by developing an employee incentive and recognition planbased oncorporate-wide objectives that include all employees worldwide. In order to achieve these objectives, however, the tactics must be customized to the local culture and market conditions. For example, if the global goal is to motivate employees to ultimately boost top line sales growth, you must understand the local markets and adopt regionalized targets and objectives to achieve the appropriate increase by market. You would have a completely different growth expectation and program structure in an emerging market versus a mature market.
Successful planning at the global level also requires realistic budget expectations. It is important to understand what can and cannot be accomplished globally within your incentive and recognition program budget. Typically, first year program budgets are burdened with one-time start-up costs and will dictate compromise. If you have employees in 30 different countries, it may not be feasible to provide communications (print and/or electronic) in 15-20 different languages. Rather, the first year you may start out with the languages that cover the largest number of program participants and, as budget allows, phase-in additional languages.
To achieve global goals you must garner the explicit support of stakeholders, including executive management worldwide during the planning stage. Often a challenge even at the domestic level, a lack of stakeholder support is even further magnified at the global level. A global program will be most successful when promoted and continually reinforced by senior level management company-wide.
The ongoing administration and customer support involved in running a global incentive and recognition program can be overwhelming. International program operation requires coordination across multiple regions, time zones and languages. Establishing local and regional contacts to aid in operational logistics can greatly aid program execution. For example, to mitigate language issues, handle employee questions on program rules and award redemptions through a local contact who speaks the dialect. Ultimately, companies will benefit from the added flexibility, high quality and timely assistance of in-region, “face to face” operational support.
A key component to keep in mind in a continuously changing global landscape is flexibility. In other words, a program’s design should be able to adapt to cultural, environmental and market changes. Modifying business objectives, rules structures and payouts to fit culture and local market needs requires patience. For example, it may be more cost-effective to operate a regional sales incentive program in the beginning, but then subdivide into country level programs later down the road. This continuous improvement can be achieved through monitoring, analysis and ongoing program enhancements.
Technology, the enabler for many incentive and recognition programs, should also be flexible enough to handle cultural differences. It should allow for multiple currencies, multiple languages and regional and/or local Webpage design. For example, text direction varies by language, so an incentive program Webpage should be designed to accommodate left to right, right to left and bi-directional text. In addition, technology should adapt to organization structures that are very different, less defined, and in many cases, have to be built to support a global incentive and recognition program – a “one size fits all” approach will not work.
Local customs, styles and trends should be considered when creating a culturally appropriate program design. Localize rule structures, objectives, communications, program support and awards to fit the culture. This includes understanding how your employees want to be recognized. For example, in the United States, many employees prefer being recognized at an event in front of their colleagues. However, in South Korea for example, employees may find public recognition awkward.
It is important not only to communicate in the right language, but also to understand and incorporate cultural symbols as appropriate. This principle should be applied when designing program communications. Of course, using local languages when possible is most effective. However, it is also important to remember to avoid U.S. colloquialisms. In the United States, sports metaphors are often used, such as “hit a home run” or “take the ball and run with it,” but these sayings don’t translate well in other cultures. Baseball imagery might not work well outside the United States, but Cricket imagery would, especially in the Commonwealth countries. Appropriate symbols should also be incorporated into design to make a meaningful connection with the participant. In China, for example, the color white symbolizes mourning or death, so it should be avoided in communications pieces. It might be more appropriate to use red – a Chinese symbol of luck and happiness.
A main concern for many companies is the equity of awards across regions. Providing a “like” selection of awards in as many countries as possible is important. It is not necessary to offer exactly the same awards in every region, but a similar mix of awards ensures employees feel they are being treated fairly. It is also important to consider cost of living adjustments. Award payouts should be adjusted to provide similar value in each receiving country. For example, an expensive watch in emerging countries may be equivalent to six months or more of an employee’s salary. For other countries, it could be less than one month’s salary.
To offer culturally meaningful awards companies need to consider local customs, styles and trends when putting together an awards mix. For instance, giving clocks as gifts in China has long been regarded as a gift giving faux pas. The word for “clock” in Chinese is a homophone for the word for “death.” China’s younger generation, however, is not as superstitious, so this may not be an issue for those just starting off in the workforce. In addition, vouchers may be more effective than merchandise in countries where environmental issues make shipping merchandise challenging due to infrastructure or theft issues.
Although the global landscape is dynamic, planning, execution and localization will remain vital elements of a global program. The tactics, however, should adapt to the current local trends. In the long term, as employee populations increasingly participate in a global society, t will become easier to plan and execute global incentive and recognition programs. In the short term, however, motivating both the mature workforce and the new workforce will be a challenge for multinational companies.
