How To Motivate TheHow To Motivate TheNext Generation ofNext Generation of
Sellers The Right WaySellers The Right Way
Featured SpeakersFeatured Speakers
Leo JakobsonSenior Editor
Incentive Magazine
Jim WexlerExecutive VP of
Marketing
BrandGames
Michelle PokornyManager of Performance
Improvements Solutions
Maritz Motivation
Motivating The NextMotivating The NextGeneration Of SellersGeneration Of Sellers
Leo JakobsonLeo Jakobson
Senior EditorSenior Editor
Incentive MagazineIncentive Magazine
Motivational DifferencesMotivational Differences
Jim Jim SchroerSchroer, CEO of Carlson Marketing, one of, CEO of Carlson Marketing, one of
the largest incentive houses in the industry, said:the largest incentive houses in the industry, said:
““When I was growing up, teacher and leaders couldWhen I was growing up, teacher and leaders could
tell you what to do. You cantell you what to do. You can’’t tell Generation Yt tell Generation Y
what to do. You have to persuade them, and youwhat to do. You have to persuade them, and you
have to do that face to face.have to do that face to face.””
Loyalty DifferencesLoyalty Differences
Other industry leaders discussed Gen X andOther industry leaders discussed Gen X and
Gen Y at Gen Y at IncentiveIncentive’’s Sixth Annual Industrys Sixth Annual Industry
Roundtable on June 1Roundtable on June 1
Spencer Toomey, VP, Sales and Marketing, TheSpencer Toomey, VP, Sales and Marketing, The
Corporate Marketplace; board member of theCorporate Marketplace; board member of the
Incentive Marketing Association:Incentive Marketing Association:
Gen Y Gen Y ““is going to change careersis going to change careers——not jobs,not jobs,
careerscareers——three to five times in their lifetime.three to five times in their lifetime.””
Retention ChallengesRetention Challenges
Retention is among the biggest industry concern overRetention is among the biggest industry concern over
Gen X and Gen YGen X and Gen Y
Society for Human Resource ManagementSociety for Human Resource Management’’s (SHRM)s (SHRM)
2006 Workplace Forecast: HR professionals believe2006 Workplace Forecast: HR professionals believe
retention will be as big as rising health care costsretention will be as big as rising health care costs
Retention wasnRetention wasn’’t even an issue two years earlier. Gen Xt even an issue two years earlier. Gen X
and Gen Y are a major cause of the new concern.and Gen Y are a major cause of the new concern.
SHRMSHRM’’ss 2006 U.S. Job Retention Poll: 73% of HR 2006 U.S. Job Retention Poll: 73% of HR
execs worry about retentionexecs worry about retention
Industries SufferingIndustries Suffering
Professions like nursing have already been hitProfessions like nursing have already been hit
hard by retention woes, and are respondinghard by retention woes, and are responding
aggressivelyaggressively
IntegrisIntegris Health in Oklahoma offers $1,000 Health in Oklahoma offers $1,000
referral bonuses and enters referrers intoreferral bonuses and enters referrers into
drawings for Plasma TVs and two-year car leasesdrawings for Plasma TVs and two-year car leases
The Incentive IndustryThe Incentive Industry
Incentive Federation study: Incentives are a $28Incentive Federation study: Incentives are a $28
billion industrybillion industry
IncentiveIncentive magazine 2007 Sales FACTS Report: magazine 2007 Sales FACTS Report:
half of all incentive sales programs will spendhalf of all incentive sales programs will spend
more per person this yearmore per person this year
Impact On Incentive IndustryImpact On Incentive Industry
Non-sales incentive programs that recognize allNon-sales incentive programs that recognize all
employees are a huge growth areaemployees are a huge growth area
Generally operated online, they offer immediateGenerally operated online, they offer immediate
recognition: the instant gratification Gen X andrecognition: the instant gratification Gen X and
Gen Y wantsGen Y wants
Instant GratificationInstant Gratification
Gift Cards: The fastest-growing incentive rewardGift Cards: The fastest-growing incentive reward
categorycategory
IncentiveIncentive 2007 Gift Cards FACTS Report 2007 Gift Cards FACTS Report
preview:preview:
82% use gift cards as an incentive award82% use gift cards as an incentive award
One-third increased their gift card budget in 2007One-third increased their gift card budget in 2007
Changing Face Of TravelChanging Face Of Travel
Gen X and Gen Y want: adventure travel,Gen X and Gen Y want: adventure travel,
extreme travel, eco-travelextreme travel, eco-travel
Reno/Tahoe is a top incentive destination thatReno/Tahoe is a top incentive destination that
has seen a rebirth after embracing Gen X andhas seen a rebirth after embracing Gen X and
Gen Y three years agoGen Y three years ago
What To DoWhat To Do
Joanne Joanne CuddebackCuddeback, VP, Employee Engagement,, VP, Employee Engagement,
Maritz Inc., one of the largest incentive housesMaritz Inc., one of the largest incentive houses
in the business, believes the industry will figurein the business, believes the industry will figure
out how to motivate, retain and rewardout how to motivate, retain and reward
members of Gen X and Gen Ymembers of Gen X and Gen Y
““It will be great when they actually move in and takeIt will be great when they actually move in and take
over this industry, then they can solve their ownover this industry, then they can solve their own
problems.problems.””
The Science and Art of People and Potential
Motivating and Retainingthe Next Generation of
Sellers
Michelle PokornyPerformance Improvement Solutions Manager
Maritz, Inc.
Maritz helps companies tap the potential of people to achieveunprecedented results in unexpected ways.
We partner with Fortune 1000 companies to design and executeprograms and solutions that drive greater performance through
Understanding, Enabling and Motivating their people.
Custom Learning Customer Loyalty Experiential Marketing Market Research Performance Incentives Recognition & Rewards Travel, Meetings & Events
What Defines a Generation?
• It’s more than just age…
• Reference Points
– Events, people, places and things
• Conditions, Environment
– Economic, world, labor, and social
• Life Experiences
Baby BoomersBorn: 1946-64
Ages: Late 40s to
Late 50s
80 million
41.5% of workforce
Generation XBorn: 1965-1980*
Ages : Mid 20s to
Late 30s
46 million
29.5% of workforce*dates vary
Generation YBorn: 1976-2001*
Ages: Mid Teens
to Early 20s
76 million
22.5% of workforce*dates vary
‘Generations’ in Today’s Workforce
Within a total US workforce approximately 150 million strong…
Sources: Wikipedia; End of Year 2006 RainmakerThinking, Inc. Analysis.
What Shaped Them…Who They Are
Generation YGeneration XBaby Boomers
OK City, Columbine, 9/11,
Internet, Mass Comm.,
Clinton-Lewinsky, Digital
Media, Technology
Watergate, Fall of Berlin Wall,
Challenger Disaster, Reagan,
Gulf War, PC Boom, MTV
Vietnam, Civil Rights,
JFK, MLK, Woodstock,
Cold War, Roe v. Wade
Formative
Events
Family Focus, Nurtured,Indulged, Scheduled
Latch-keykids, Independent
Ozzie & Harriet; Care forparents, kids and
grandkidsFamily
Assumetechnology
Usetechnology
Forcedtechnology
Technology
Killer lifestyle – Work toLive
Killer life and resumeKiller job – Live to workEmployment
Rewritethe rules
Reject / questionrules
Conform to, play bythe rules
Authority
Optimistic/Realistic, Patriotic, Civic
Responsibility
Pragmatic/Cynical
Optimistic/ Idealistic,Competitive
Outlook, WorldIssues
Assumediversity, globally
connected
Acceptdiversity
Diversityas a cause
Multi-Culturalism,
Globalism
Sources: Various articles,research and books by ClaireRaines and Cam Marston;Research and consultationby Mary Kausch.
Workplace Characteristics
Dislike menial work
Lack experience, people and conflictmanagement skills
Impatient
Over confident, sense ofempowerment
Impatient with poorperformers, slow process
Trouble identifyingw/others
Lack mgmt skills
Low on attention andrecognition
Overvalue hours worked
Job, paycheck = reward
Opinionated, questionsauthority
Slower to adapt/learnnew/use technology
Liabilities:
Multi-tasking, problem solving
Goal oriented
Positive attitude
Question (Gen “Why?), innovative,tolerant of change
Tech and ‘street’ savvy
Collaborative
Technically competent
Fresh Perspective
Systems, Big-Picture andresults orientation
Self-reliant, direct
Care less about status,power
Lots of experience andknowledge
‘Anything is possible’attitude
Champions of teamwork,“works well with others”Process oriented
Assets:
Flexibility
Don’t command, collaborate
Respectful, social relationships
Want Role models, knowledge, skills
Challenge, involvement, recognition
Friendly, fun, socially responsible
Work-life balance
Casual, friendly,respectful environment
Functional, efficient, fast
Technologically updated
Learning, skill developmt.
High level of freedom
Strong Work Ethic
Structured
Teamwork, Consensus
Relationship Building
Loyalty to company andexpect from those thatwork for them
PreferredWorkplace
Environmentand WorkEthics:
Generation YGeneration XBaby Boomers
Sources: Various articles, research and books by Claire Raines; Exec Summary:Managing the Generation Mix 2007, RainmakerThinking, Inc
Bye-Bye Boomers
• Between 8 and 10 thousand Boomers turn 60 everyday– By 2015, _ of Boomers will be 60
• Millions have and will retire over the next decade, virtuallydisappearing by 2015
• Single largest knowledge drain in American workplace history…when companies need intellectual capital most
• 2 experienced workers leaving for each inexperienced one whoenters
• Major challenges for organizations:– Capture boomer wisdom and
– Prepare to attract, retain and motivate the diverse workforce thatfollows…
Sources: Various articles, research and books by Claire Raines; Exec Summary:Managing the Generation Mix 2007, RainmakerThinking, Inc; “The Boomer Bust- BigProblems Ahead for Organizations”, Frederick A. Miller and Judith H. Katz
Talking to and Teaching Generation X and Y
Struggle to accept constructive criticismBetter with ConstructiveCriticism
Value Collaboration, Input, GuidanceWant Choice and Control
Technological Communication the norm (e.g.email, IM, SMS/text. blogs)
Not just classroom, technology options and tools (particularly Gen Y)
Coaching Relationships, Teamwork, Mentors
New, Experiential, on the job learning activities
Ready for – and demand to learnimmediately, anytime and anywhere
Want lots of marketable skillsand experience
Learning
Preferences
Leadership Development
Frequent Informal & Social Communication.Desire positive, motivational feedback
Less Frequent InformalCommunication
Communication
Preferences
Technological Communicationokay
Direct, Specific Words and Feedback
Two-way communication (regardless of level) , explain why and request input
Generation YGeneration X
Sources: Various articles, research and books by Claire Raines; Human Resource Executive July 1, 2006 “Here They Come”; MANAGEsmarter “Are youReady for Us” June 07,2007 and “Generational Series, Part2: X-Y Vision” June 8, 2007; Human Resource Executive “Here They Come” July1, 2006;Dialog NewsEdge “Younger Employees Want More – Connection That Is” October 19, 2006;
Attracting and Retaining Generation X and Y
Sources: Fortune “What do Gen Xers Want?”, Anne Fisher January 2006; Research by Charlotte Shelton,management consultant at WiseWork; “Attracting and Retaining Generation Y Employees”, Steve O’Malley,Insurance Advocate November 2006.
• Don’t respond to the same carrots or sticks that motivated theirelders
• Work life balance as important as money or promotions
• Tolerance for change, not afraid of being fired or leaving
• Want:– Great Bosses and Relationships
– Frequent Feedback
– Flexible work environment and control of their time
– Collaboration and Teamwork
– Access to information and education
– To make impact and a path for advancement
• Competitive salary and benefits important… but “if they comejust for the bucks, they’ll leave for the bucks”
• Building their engagement with challenging work in a nurturingenvironment is a better bet
Motivating Gen X and Gen Y
• Beyond cash - Incentive programs with clear, measurable goals thatcan be reached within short-term timeframes
– When polled, 79% of employees under 35 (vs. 68% overall) feel additionalreward opportunities would motivate them to be more productive in their jobs
– Answer the “5 questions”
– Consider team-based incentives where appropriate
– Tie personally meaningful rewards to measurable performance
• Give Praise – Provide formal and informal recognition– Want to feel motivated by their work and be recognized for their impact,
achievements and a job well done
– Recognize improvement
– “Give praise as soon, as sincerely, as specifically, as personally, as positivelyand as proactively as possible”
– Recognize in meaningful ways
• Ask for Input– Want to be involved, help plan and shape the organization
– Formal and informal idea sharing systems and forums for process,product improvement input
Sources: Maritz Research 2006 Poll; “Attracting and Retaining Generation Y Employees”, Steve O’Malley, InsuranceAdvocate November 2006. Dr. Bob Nelson quoted in and excerpts from Wall Street Journal, “The Most-Praised GenerationGoes to Work”, April 2007.
Rewards Should Reflect Lifestyles and Trends
• “Green” is Good
• Live For Today
• And Luxury for All
• Smart Products
• America Unplugged
• Choice, Choice, Choice
• Flexible and Cultural
Generation X
•$736 Billion Estimated Spending Power
•Think Family and Home
•Majority now home owners
•Personal services, Household items, Major ElectronicUpgrades
•High in Luxury spending
•Items that make life easier
Source: 2002 American Demographics www.demograhics.com;
Kahuna Bob Surf
Lessons- adventuroustravel destinations
Fisher Price Elmo
Knows Your Name-techy parents buy techy
toys
Digital
PictureKeychain-cutting edgeelectronics,
keepingfamily close
Sony VAIO Digital
Living System- Willingto splurge on Home
Entertainment
Homedics
Music SyncMassageSeat-relaxingwith technologyafter a long day
IO Digital Display I-Theater- driving the travel
market- take along thelatest technology
The Good Bead
Cancer AwarenessBracelet - benefitscharity- important toXers, still fun and hip
Keurig B60 SpecialEdition Single Cup
Home BrewingSystem- just like thecafé- but right in thekitchen (Insperience)
EcoPod Recycling
System- Leaders inhelping out theenvironment
Generation Y
•$187 Billion Estimated Spending Power
•Think Personal Appearance and Fun
•Majority either paying rent or living at home
•Electronics, Electronics, and more Electronics
•Gather information online to determine spending
•Items that make life enjoyable
Source: 2002 American Demographics www.demograhics.com
Experience Fashion
Week- great way tolive out a dream
Nintendo Wii-
Next greatgame systemshowing up atevery party
Sony VAIO UX Micro
PC- quick to explorethe latest trends
Apple iPod 80GB Video –
Always having entertainmentby their side
Whistler
LaserRadar
Detector-live fast,drive fast
Oakley Thump Pro 1GB
Digital Eyewear – Looks
cool and helps them have alittle extra fun
Razor
RipStick –Ready for
the next newToy
Apple MacBookNotebook
computer- Wherea lot of time isspent and wheremany purchasesare made
Selling to Gen X and Y
Considerations for sales training/selling to Gen X and Gen Y:
• Boomers in the Marketplace
– Want products/services that help them regain their time, believetechnology brings as many problems as solutions, want individualcustomization, want products/services that indicate to peers theyare successful
• Xers in the Marketplace
– Can spot a phony miles away, rely on peer-to-peer referrals, wantoptions and back up plans, embrace technology, want to be incontrol of the sale
• Yers in the Marketplace
– Want to be like their peers but still unique, don’t want to behurried, will consider a company’s products if known for beingaltruistic, are loyal consumers, search for unique and hard to finditems
Source: www.marstoncomm.com and consultant, author and speaker Cam Marston;
Thanks!
For a copy of today’s presentation, go to:
http://www.maritzincentives.com/HowToMotivate
To reach Michelle Pokorny, please email [email protected]
For additional information on Maritz, go to www.maritz.com
Engagement and Employer Branding
for the
Next Generation
Sales Force
The Changing Landscape…
It’s a New Generation of Talent…
• Who are they?
• How do they learn?
• How can we appeal
to them?
Employees Under 40 Grew Up with Computersand Videogames
•Top talent are already using PCs and playing games every day.
•Games are the #1 activity on the Internet
–55 million casual gamers on the web,
–43% of gamers are females
A New Way of Learning and Working
Key talent has moved on
to a new communications
paradigm…have you?
“…this generation has systematically different ways of
working…choose systematically different skills to learn and
different ways to learn them…
…they desire different goals…think differently about their
companies, careers and co-workers, how they take risks,
compete and fit into teams.”– John Beck/Mitchell Wade
Got GameHarvard University Press
Top young talent see games as:
• Puzzles to be solved
• Connectivity platforms
• Personal branding
statements
• Facts of life
Baby Boomers See Games As Toys...
A New Relationship with Talent
The next generation of star employees has grown up in a consumer-
centric society and is used to ‘having it their way’.
They want to know “What’s in it for me?”
This is a fundamental change:
• Corporations who see training as an employee obligation
risk having employees who view their job as a means to an end
• Corporations who see training as an opportunity to engage and
stimulate have employees who see their job as a challenge.
But trickles out at the employee level like a garden hose
The Corporate Culture Story Gushes From HR
Management Like Water From a Fire Hose…
Institutionalize Best Practices
Context
Go beyond just teaching “what” to learn
Today’s employees want to know:
• “Why should I learn it?”
• “What does it mean?”
Message Control
– Shared mission and vision
– Consistent culture and values
– Transferable skill sets across operating systemEngagement + Consistency = Results
A new Towers Perrin study of 86,000 employees worldwide
shows:
•Organizations with highly engaged employees are far more
likely to have stronger revenue growth, lower costs and higher
income than companies with less engaged employees
•Only 14% percent of people are highly engaged on the job with
the ability and willingness to go the extra mile to help their
companies succeed.
Source: 2006 Towers Perrin Engagement Study
Engagement = Revenue
How Can We Make Learning More Effective?
• Communicate with employees in a way they enjoy, and rewardthem for their effort – so the concepts stick!
• Make it relevant -- Speak the language of today’s “digital”employee’s
• Make training programs fun to complete
• Incentivize participation
In 2007, deploy training games/Sims
Create excitement foster competition increase information recall
Studies show the information recall benefits
of Learning by Collaborating and Doing
over other learning formats.
Learning By Doing
Different Types of Games
for Learning 1. Arcade-Style Games
– Addictive Gameplay
– Reps play and learn over and over
– Learning is built-in to the fun
– Sports Games, Action/Adventure
2. Game Shows– Everyone loves Game shows!
– Q & A, Jeopardy-style, Head-to-Head Competition
3. Simulations– Immersive 3-D Retail Environments
– Realistic Graphics, Sound, Videos
– Scenario-based customer learning and sales situations
Arcade-Style Games -- Examples
Reps compete for high scores forprizes and ‘bragging rights’
Sirius Sales Training
• Targeting retail reps
• Activate the NFL partnership
• “ Tom Brady’s QB Challenge”
• Incentive: win prizes throughgameplay
• Thousands of hours of training
Nokia BuzzTribe Games
• Reps at Cingular stores
• 5300 reps visit website 3.61times each
T i l d th t t hi h
Nokia Results Summary
• Total Game Registrants: 4,926
• Total Number of Visits: 9,242
– Users are averaging 3.61 visits
• Total Number of Page Views: 383,093
– Users are averaging 41.45 pages/visit
Traffic to Each Page
• The Game file constitutes for the most web traffic
• The Buzz Stories receives the most traffic of the added
value elements
Traffic By Page
0
2000
4000
6000
8000
10000
12000
14000
16000
Gam
e Site
Gam
e Play
Hom
e
Intro
Video
Qua
lity
Rules
Buz
zsto
ries
Time Spent
Page Views
Time Spent on Web
• 20% of users spent 1+ hours per session
• 25% of users spent between 15 minutes and 1+ hours per session
• 61.5% spent at least 5 minutes on the website per session
Duration of Visits
0
500
1000
1500
2000
2500
0s-30s 30s-2mn 2mn-5mn 5mn-15mn 15mn-30mn 30mn-1h 1h+
Time Spent
Visits
Time of Day
• Most of the website visits occurred in thelate evening/early morning time framewhich is consistent with the gamingcommunity
Playing Times
10%
8%
7%
5%
3%
3%
3%
2%2%
1%1%2%4%6%
7%
8%
9%
9%
11%
12:00 AM
1:00 AM
2:00 AM
3:00 AM
4:00 AM
5:00 AM
6:00 AM
7:00 AM
8:00 AM
9:00 AM
10:00 AM
11:00 AM
12:00 PM
1:00 PM
2:00 PM
3:00 PM
4:00 PM
5:00 PM
6:00 PM
7:00 PM
8:00 PM
9:00 PM
10:00 PM
11:00 PM
CUSTOMER FIRST Metrics
In the last 30 days, what manufacturer was
most recommended by the reps to consumers?
Other
1%
Sony
Ericsson
1%Samsung
5%
Nokia
32%
LG
4% Motorola
57%
In the next 30 days, after experiencing the BuzzTribe,
what manufacturer would the reps most likely
recommend to consumers?
Other
1%Sony Ericsson
1%
Motorola
9%
Nokia
89%
492
Why was that manufacturer recommended?
30%
17%
23%
20%
30%
55%
0% 10% 20% 30% 40% 50% 60%
Form Factor
Customer
preference
Quality
Reception
Quality
Battery Life
Features
Other
CUSTOMER FIRST Metrics
Game Shows -- Examples
Mack Trucks
• Exciting way to introducenew product line
• Game Show played at salesevents and trade shows
• Hosted by Bulldog mascot
• Dealer Reps play game atwork and at home on the web
Quest Diagnostics
• Game Show to reinforcecorporate culture
• Employees nationwidecompete online
• Scoreboard and prizes towinners
Occupational Simulations -- Examples
Merrill Lynch
• Employee Orientation program
• “Virtual M&A” Simulation
• Recruits and new hires
• Puts business goals in context
• Challenge: Understand M&Abusiness and complete anacquisition.
Johnson & Johnson
• Leadership development
• Scenario-based learning game
• Communications Skills to helpNurses transition to NurseManager
Occupational Simulations – Multiplayer Online
The dynamics of your business translated into a
challenging, competitive, cutting edge BrandWorld
that allows collaborative skills practice in a
risk free virtual business environment.
What is a Multiplayer Online Occupational Simulation?
“Good Morning, Mr. Phelps…”
• Challenge your employees to take the helm of avideogame business mission
• Excite and challenge them within the context ofyour business.
• Deliver the benefit of hands-on, risk free high-recall involvement in your operations.
• Peer competition and personal challenge increaseengagement and shared culture
What’s the ROI ?
• Increased training participation and information recall
• Faster speed to competency
• Institutionalized best practices
• Lowered net training costs
• Improvement in:
• Productivity and performance
• Mission and cultural alignment
• Morale and retention
• Brand Stewardship
Alignment, performance, consistent execution,
speed to competency
and
being the employer of choice!
What’s the ROI?
Multimedia games:
acknowledge the audience’s
learning orientation,
engage them
on an emotional level
and
Speak Their Language
On BrandGames
• Track Record
– 25 years experience developing effective messaging and communications for
Fortune 100 companies
• Innovation
– Pioneered branded games (‘advergaming’) in 1995
– Launched first ever recruiting Sim for Merrill Lynch in 2001
• Quality/Relevance
– Commercial quality games that strike a chord with employees
• Skill Set
- High-impact story telling and message development
- High-end multimedia, game and simulation development
- Integrated campaign deployment
Contact:
Jim Wexler
212 780 0140 x203
wexler@brandgames com
Q & A PanelQ & A Panel
Leo JakobsonSenior Editor
Incentive Magazine
Jim WexlerExecutive VP of
Marketing
BrandGames
Michelle PokornyManager of Performance
Improvements Solutions
Maritz Motivation
Thank You!Thank You!