RRN: At the Intersection of Art and Science

By Bruce Bolger

Organizations have used rewards and recognition since ancient times in all areas of commerce, but until the 1990s there was almost no research on the subject, and one finds little coverage of the industry in the general business media, even though the Incentive Federation estimates its total size at more than $75 billion. In fact, one could argue that most organizations – despite what we, as industry professionals, know to be true – offer rewards program based on surprisingly little data and science, and quite often on the assumptions of people who in fact have had little or no training on the subject.

But that is changing. Thanks to the extensive body of research funded over the past 20 years by the Incentive Research Foundation, the Forum for People Performance Management and Measurement at Northwestern University (full disclosure: I was a founding trustee of the Incentive Research Foundation and a co-founder of the Forum) and other data produced by dozens of highly credible third-party research organizations, people now have available hard-to-refute findings that even address the legitimate issues raised by best-known skeptics of the traditional use of incentives, including authors Alfie Cohn and, more recently, Dan Pink.

Yet despite all of the science, many companies continue to give rewards without clear measurement or ROI; deliver rewards in retail boxes with no personalization; select and present rewards in a way that makes them effectively cash equivalents; and confuse compensation and pricing issues, thereby missing the magic opportunity to reinforce a lasting relationship. 

There’s nothing for these organizations to be ashamed of. Few companies of any size would think of handling a direct marketing or advertising campaigns without at least some training over time, but unlike these subjects, the theory and science of engagement and rewards isn’t taught in schools, and the learning opportunities created by organizations like the IRF and Incentive Marketing Association remain little known and underutilized.

Two decades ago, one could say that the industry was at fault – that the suppliers played into clients’ beliefs by making unsubstantiated claims about the efficacy of noncash rewards with scarce research to back up their claims. That can no longer be said. The industry – primarily through the Incentive Research Foundation – has helped fund credible research from dozens of leading organizations whose findings stand up to basic logic and statistical analysis.

We know the industry is up to the challenge. Most of its leading practitioners don’t need training on how to make their reward solutions engaging – they’ve been waiting for years to show what they can do and get the respect many deserve. But now the time has come to carry that message to the public at large.

The brands and wholesalers that are featured in the Rewards  Recognition Network (RNN) and who participate in the annual Rewards & Recognition Expo are excited to bring their ability to maximize the rewards and experience to any organization looking for ways to motivate people and appreciate performance and loyalty. They are ready to share ideas and strategies based on science that many businesses don’t have time to analyze, but who at least respect the importance of applying it to their programs. These brands and wholesalers can share new ways to select, customize and personalize rewards so that they stand out when they arrive in the office or at a home with a message that resonates not only with the recipients and their significant others, but throughout the organization long after the actual moment.

This is a relatively small industry of brands, wholesales, incentive representatives and some promotional products distributors that has existed in its current form since at least the end of World War II, yet it’s not bigger in terms of numbers than the size of a small private college. Many people know one another and, yes, there are different groups who get along to various degrees. There are different advantages to using different types of awards – group travel, individual travel, merchandise, gift cards, etc. – and plenty of room for competitive arguments between suppliers of these products and the groups that represent them.

RRN is about bringing more science and “disciplined art” to the use of engaging rewards in business. To share the expertise of all the people who have new products, services, ideas, trends, or other useful information to help organizations better engage their people to achieve critical goals by fostering fun, positive emotions and support necessary for sustainable success.

Welcome to our new RNN web site and digital and email editions. We hope you find these resources enlightening.