A better incentive program can start with cultural differences. A well-designed rewards system can improve your team’s performance by 40% when it matches the local preferences and customs! Success comes from paying attention to what motivates people across different regions and cultures.
Cultural customization delivers real business results – this guide covers four important areas – cultural norms, creating assessments, customizing incentives, and putting programs into practice. You’ll need to think about things like individual versus group recognition hierarchy preferences and how different cultures view workplace rewards.
The right cultural strategy changes average incentive programs into engagement tools. I’ll show you how to create rewards that resonate with your widespread workforce. These changes will drive measurable results. Let’s get started.
Learn About Cultural Norms
Cultural values affect how well your incentive programs work across different countries. People from different regions think differently about success, motivation, and what makes a worthy reward. You’ll need to adapt your strategy based on where your employees live and work.
Look at nations like America and Britain – these are individualistic cultures. Your employees there want personal recognition and individual achievements to be seen. A sales rep in New York would love a spotlight during the company meeting for their hard work.
Business works differently in nations like China and Japan, where people care about team success and keeping everyone happy together. Your incentive programs there should start with group achievements. Sales teams in Tokyo would celebrate their wins as a team instead of singling anyone out.
The way people view workplace hierarchy matters, too. In regions like Denmark and Israel, employees expect everyone to be treated the same way. That means your rewards should be similar, whether someone’s just starting out or sitting in the corner office.
But head over to Asia or Latin America, and you’ll find that people expect clear distinctions between job levels. Your reward system needs to align well with these differences. Senior staff should receive different benefits than junior employees.
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Some of your employees will want everything spelled out. Take German workers. They love having structured and organized programs where they know what they need to earn rewards.
British employees like more flexibility in their incentive programs. You might want to give them options like opportunities to lead fun new projects or work-from-home options. They like having different ways to earn their rewards.
About 70% of incentive programs don’t work out because businesses forget about these cultural differences. What gets your London team excited might fall completely flat in Beijing. You should always check where your employees are from when you’re putting these programs together.
Conduct Cultural Assessments
The organization’s cultural community should be your top priority before launching any incentive program. Organizations often throw money away because they use the same strategy for everyone. They should start with customizing their strategy.
You’ll want to start by collecting complete information about what drives your employees and what they care about. You can send out some surveys to your whole workforce to get the basic facts. Then, follow up with face-to-face conversations to show the cultural elements that might not show up in survey replies.
When you bring people together to focus groups, it usually shows surprising plans about what motivates your teams. Your employees will probably speak more openly when they’re sitting with their coworkers and sharing ideas that higher-ups might never have considered.
The way different cultures respond to incentives can be night and day. Some of your employees might love individual recognition and cash rewards. Others might feel uncomfortable with public praise and like celebrating team wins instead.
Once you have gathered all this information, your real work begins. You can look at all your findings and start finding patterns across different teams and office locations.
Professional tools like the Organizational Culture Assessment Instrument will help you get a clear picture of your company culture. This framework will teach you where the situation stands and where everyone wants to go. It also shows any mismatches between what leadership thinks and what’s actually happening on the ground.
Make sure that you hear voices from every level of your organization during your assessment. People working directly with customers often see situations very differently than their managers or the executive team. These perspectives will give you the full story of your cultural community.
Remember that your organization’s culture never stays the same – it’s always growing and changing. You’ll need to check in and update your cultural assessment so your incentive programs stay useful. What got results last year might fall flat.
Customize Incentives to Cultural Contexts
Cultural differences have a big impact on how you should motivate your employees. Your rewards program needs to match what drives the people in different regions. Something that gets your New York team excited might leave your Tokyo staff feeling awkward or unmotivated.
In locations like the United States and Western Europe, people care about standing out and doing well on their own. Your employees there will get excited about personal bonuses and individual shoutouts. Google nailed this strategy with its peer bonus program, which allows employees to give rewards to coworkers who are great at their work.
The story is different in countries like Japan and South Korea, where people care about the whole team winning together. Toyota shows this well in action. Instead of putting the spotlight on one star performer, they reward entire teams for reaching goals together.
Global businesses are stronger at this, too. They now give different benefits based on where their offices are located. Their American teams might get individual performance bonuses, while their Asian offices start with team celebrations and group rewards.
Organizations also let employees pick and choose their benefits. Your team members can choose what drives them the most based on their cultural background. That includes different types of mental health support, family time off, or ways to get recognized for outstanding work.
Businesses that solve this challenge right see results. When they customize their incentives for different cultures, everything works way better. Some have watched their turnover drop by 40% and seen their teams become way more involved across their global locations.
The way you give out these rewards matters just as much as the rewards themselves. While your Latin American team might love being celebrated in front of everyone, employees in other parts of the world might find that uncomfortable.
Involve Local Teams in the Design
You’ll get better results from your incentive programs when you listen closely to what your employees like. Different people from different cultures can respond to different types of rewards and recognition, too. A reward system that motivates your team in New York probably won’t have the same results on your employees in Tokyo.
Your company’s incentives will work much better if you add some employees from different backgrounds to the planning process. Take Netflix as an example: Netflix started customizing its rewards to match what each culture appreciates most. Their employee satisfaction shot up by 25%. Teams naturally like to be more productive together when they feel like their cultural values matter to the company.
The most useful programs combine personal and team-based rewards in creative ways. Google nails this strategy with its flexible system. Their Japanese offices start with celebrating team wins instead of individual achievements. That’s what matters most in Japanese work culture.
Your leaders need training about cultural differences to run these programs well. Make sure that your managers learn about what motivates different groups of people. They should welcome their teams to share directly about which rewards would mean the most to them.
Businesses send out employee surveys to learn what different groups actually want. Others hold regular feedback sessions where workers can share their honest thoughts about the incentive programs. You can test different methods and see what gets the best response from all your teams.
Look at how well Unilever works with culturally aware incentives. They have built different reward systems for each region they work in. Some locations start with individual bonuses, while others celebrate team achievements – whatever works best for that culture.
Organizations that find and respect these cultural differences see good results. Their employees stay longer and collaborate more. Studies have shown that different teams perform notably better than their competitors when their incentives match their cultural values.
Offer Different Incentive Options
You have to adapt your incentive programs to match your workforce’s cultural values and preferences. American employees like to grow on individual recognition and personal bonuses. Your Japanese team members will probably respond better to group-based rewards.
Your employees might actually like flexible hours or extra vacation days over cash bonuses. Some team members would love the chance to learn new skills or address fun projects. What matters is to give your people rewards that mean something to them.
Cultural differences can completely change how your rewards are received. In some cultures, public praise makes people beam with pride. In others, it makes them want to sink into the floor. A reward that delights your American team could miss the mark with your Asian colleagues.
Organizations give their employees a combination of different incentives. You might want to pair traditional cash bonuses with engaging team activities or professional development workshops. Your reward system also needs to align with what your company stands for and where it’s headed.
Our workplace is more diverse than ever, so your motivation strategies need to step up. Organizations now let their people pick from different reward options. This way, everyone gets something they’ll actually use and like.
The most useful programs combine quick wins with long-term results. You could give bonuses or public recognition for immediate results. Then, back those up with deeper growth opportunities or fun project assignments. This keeps people motivated at every level.
Local traditions have a big impact on how people view different rewards. Status symbols could matter in one culture while work-life balance takes the crown in another. When you follow these cultural preferences, it helps you create rewards that connect with your team.
Match Incentives with Company Values
Businesses need to know what motivates their employees when creating incentive programs. When you make these programs feel more real and relatable to your workforce, you’ll get better success.
Your company can now earn rewards for being environmentally responsible. You’ll get bonuses for trying to cut back on your team’s carbon footprint or launching new recycling initiatives. Some organizations even spotlight their eco-warriors through recognition programs like “Green Champion of the Quarter.”
Different cultures can respond to incentives in completely different ways. Your Japanese teammates might love group rewards, while your American colleagues like standing out as people. These cultural preferences will help lead your incentive program to succeed.
Unilever will show you how to adapt rewards across different regions. Their Dutch employees grow on team achievements because their culture prioritizes group success and equality. Their American workers grow with individual recognition because they love healthy competition.
Modern businesses are innovative with their performance rewards. You’ll find cash bonuses for fresh ideas that support company goals. Some organizations also give extra training or let their creative minds go after fun projects.
Your input shapes these incentive programs. Nobody knows what drives you and your colleagues better than you do. Regular feedback helps your company adjust its rewards program and proves that your voice counts.
Modern analytics tools let businesses measure their incentive programs’ success. Your organization can now track which rewards inspire the best performance. You can use that knowledge to create even better incentives in the future.
Level Up Your Incentives and Rewards
You need some strong incentive programs that can connect well with your team. That means putting in the time to know what makes each person tick. You’ll want to give feedback closely to your employees and learn about their different ambitions and priorities. You’ll create rewards that improve performance and make your team feel valued.
Your incentive strategy might need a fresh assessment. Businesses don’t realize their reward programs aren’t hitting the mark until they see engagement drop off. The best programs grow right along with your company. You’ll want to check in with your team to make sure the rewards still excite them.
At Level 6, we help organizations just like yours create incentive programs that get results. Whether you’re looking to fire up your sales team or improve company morale, we have the services that deliver measurable results. Our lineup features branded debit cards, employee recognition programs, and sales incentives that match what your business needs. Our custom-built programs are designed specifically for your situation.
Schedule a free demo with us! We’ll show you how other high-performing businesses are crushing their sales goals and getting good returns on their investment.
Claudine is the Chief Relationship Officer at Level 6. She holds a master’s degree in industrial/organizational psychology. Her experience includes working as a certified conflict mediator for the United States Postal Service, a human performance analyst for Accenture, an Academic Dean, and a College Director. She is currently an adjunct Professor of Psychology at Southern New Hampshire University. With over 20 years of experience, she joined Level 6 to guide clients seeking effective ways to change behavior and, ultimately, their bottom line.
