Today most companies are operating multi-location, multi-country business operations – with this comes the challenge of managing employee engagement across locations. Hence, rewards and recognition programs being a critical part of employee engagement need to be designed and rolled out globally.
Designing and running a global R&R program has its own set of challenges. Firstly, purchasing power differences across countries need to be factored into the rewards budgets – rather than having a uniform budget. Using an index such as purchasing power parity (PPP) to calibrate the budgets might actually help. Global rewards platforms need to be designed to take care of this.
Second and probably the most crucial element is factoring in the cultural differences between various regions in the selection of rewards. Hence, redemption and fulfilment needs to be localized as much as possible. Employees can opt for rewards that suit their culture and preferences. Also, the pricing of products might differ widely between regions even for standard branded products. Hence global rewards platforms need to be able to seamlessly handle redemption of rewards across locations.