Also in this report:

* Moosehead taps roots through music: New Brunswick brewery uses CDs featuring local talent to boost sales in the Maritimes p.17

* Movie passes the star of AT&T promotion p.19

* Esso orchestrates Icemorph invasion: Comic book promotion aimed at kids drove sales at pump p.21

* Music in tune as promotional product p.22

It’s the challenge inherent in developing any employee incentive program.

No matter how sophisticated the program, it’s only going to motivate staff if you’re offering the right reward. But how can you be sure you’ve got something they truly want and value? Especially when that’s likely to be different for each individual – tickets to the big game for one, logoed sportswear for another?

Many employers today are getting around this dilemma by moving away from a set menu of rewards toward more flexible, points-based programs that allow staff to choose their own rewards.

The demand for such programs is exactly what led to the recent introduction of Air Miles Incentives, an extension of the successful Air Miles reward program managed by The Loyalty Group Canada since 1992. The new program allows employers to offer Air Miles travel miles to their people as a reward.

The Loyalty Group staged the initial rollout of Air Miles Incentives this April in Alberta, a province where more than 80% of households are enrolled in the Air Miles rewards program.

Maria Prairie, group manager, Air Miles Incentives for The Loyalty Group, says a number of companies, ranging from sales-based operations to manufacturing and trucking firms, have adopted the new incentive program. She says preliminary response, both from employers and employees, has been favorable.

The Loyalty Group is now looking to market the program beyond Alberta.

Air Miles Incentives is aimed primarily at small- to mid-sized businesses, although Prairie says the program can be scaled to meet the needs of both very small and very large companies.

For an employer, the cost of signing on for Air Miles Incentives can run as low as $600. The price tag includes an upfront purchase of travel miles, plus a starter kit containing a guide to setting up and using Air Miles Incentives, information sheets for employees, posters, and software designed to help an employer administer the program.

Prairie says the intent is to make the program easy for a company to use. The software even makes it possible to print certificates for rewards recipients, providing them with some tangible or ‘trophy’ value.

‘That’s extremely important when running an employee motivation program,’ says Prairie, ‘because you want them to feel proud that they’ve received it, and you also want them to put it up to show and motivate others.’

Periodically, the employer sends a disk to Air Miles containing information on the number of travel miles that have been awarded, and to whom. The data are then uploaded into the Loyalty system, and employees will see those travel miles added to their quarterly Air Miles statement.

Prairie says companies can use Air Miles Incentives to supplement existing recognition programs, or as the foundation for a new program – whether designed to motivate the salesforce, recognize outstanding customer service, or to reward employees for maintaining a good safety record.

One of the advantages of using the program, she contends, is that many people are already Air Miles collectors, so an employer can be assured that the reward has wide appeal. More than 5.6 million Canadian households currently take part in the Air Miles rewards program.

While cash is still the No. 1 motivator, Prairie says employees are likely to spend it on things they would be buying anyway. Air Miles, by contrast, can provide an experience with greater value and longevity.

Employees can save up their travel miles for vacations, or redeem relatively small quantities for rewards such as Toronto Blue Jays tickets or free long-distance calling.

Other entertainment-related rewards available include tickets to Livent productions or movies at Cineplex Odeon, and amusement park admissions.

Travel-based rewards include airline flights and vacation packages, as well as hotel accommodations, car rentals and Greyhound bus tickets.