It's all about the experience

When an employee does well, he gets a BOMB. Don't panic, it will not explode. Instead, it will take the employee and his or her spouse or a dear friend to the latest movie in say an IMAX.

BOMB stands for box office movie bonanza. The idea behind the BOMB is not just to reward the employee for his or her performance but to make it an experience, both individually and for the family. It marks a slight departure from the rewards that employees have received so far — cash prizes, a pat or praise, which in management circles was well known as the most effective non-financial incentive.

The shift towards experiential rewards is in keeping with the changing times in corporates and organisations, where competition is high and loyalty low. An efficient rewards and recognition (R&R) system that is alive to contemporary demands has become important. Rewards have to be attractive, experiential and continuous, says Phani N. Raj, chief of eYantra, a brand merchandising company engaged in giving corporates reward fulfilment ideas through innovative gifting and motivation.

The Hyderabad-based company recently acquired Privilege Corner, a Rs 7-crore Gurgaon company that has developed skill sets in rewards and recognition. How to motivate staff, especially Gen Y, in the traditional as well as new economy industries with innovative rewards is the big challenge it has been addressing. Mindtree, Mahindra Satyam and Essar are among its clients.

For decades, performance brought in recognition in the form of watches, silver and gold coins. In addition, points based or performance-based incentives such as cash prizes and merit certificates were the norm. However, the IT, telecom and multinational companies have ushered in new practices. There has been a shift towards experiences that translate into memories, says Phani Raj.

The Mahindra Satyam experience

The BOMB initiative implemented in Mahindra Satyam is based on the popularity of theatres and multiplexes for family outings and celebrations. It comprises two movie tickets with a snack combo across multiple theatre brands. In short, it involves the family, is applicable across the country, and doesn't trouble the wallet — what more can one ask for.

Says Devdutta Sarma, Head, Performance and Rewards Management at Mahindra Satyam: “We have implemented the BOMB and Privilege Club programmes with good results over the last eight months after revamping the reward and recognition programme.

“At Mahindra Satyam we have instituted a hierarchy of rewards for staff members as they work their way up. There are the spot or instant awards (praise, good job done cards, etc); the Bravo or token letter given by the functional head; to this we have added the BOMB. It is aimed at encouraging GenY (below 35) who are keen to achieve a work-life balance and maintain a family connect.

“Next is the Associate of the Month award which entitles the winner to a shopping voucher that can be used to buy aspirational brands. It is a shift from money to helping one realise one's aspirations. The next step in the rewards programme is the Privilege Club, that goes beyond traditional points-based reward programmes (with gold, platinum, legend) and aggregates points accumulated through different activities and recognition in the organisation,” he says.

He adds that as the company has associates located across the world, theirs is a global rewards and recognition programme. The tie-up with eYantra allows them access to global brands, says Mr Sarma.

Another initiative that eYantra has taken is to start stores in corporates. These stores contain a wide range of products that can be gifted on various occasions. The company sources the products from Indian and global manufacturers. The company has set up about 16 such outlets so far, , says Phani.

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