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 atmichelle.pokorny@maritz.com

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!