6 May 2010
Travel perks lead to high engagement for Travelzoo
According to The MacLeod Review, employers have yet another challenge on their hands with the issue of holding on to their best employees. Travelzoo has found a novel solution which has increased retention and, in turn, boosted the business.
Post-recession, businesses are beginning to get back on their feet and many are hiring again. But it’s not just leadership teams and executive boards that are switching their focus from survival to revival. Valued employees that have remained in their roles and ridden out the financial crisis are now starting to consider their career options, and retaining top talent is rapidly becoming a hurdle many employers are having to address.
Employee engagement is now more important than ever before because it’s those employees who feel they get out as much as they put into their work who are more likely to remain loyal to the business as much during the tough times as they would in the good times.
Engaging figures
Findings from The MacLeod Review, published in 2009, commisioned by the UK's Department of Business, Innovation and Skills to carry out research into the state of engagement across UK companies, revealed:
- Engaged employees are 87% less likely to leave their organization than the disengaged.
- Engaged employees in the UK take an average of 2.69 sick days per year, compared to 6.19 days taken by disengaged staff.
- Engaged employees are more likely to advocate their company or organization. 78% would recommend their company’s products of services, against 13% of the disengaged.
Travel Incentives
Travelzoo, a global online travel publisher, uses travel incentives as part of its engagement strategy. Two years ago, the company developed the “Travelzoo Experience” as part of a benefits program offered to employees. The experience includes a yearly travel allowance of $1,500 to $2,000 for all employees who have worked at the company for more than a year, plus an additional three days holiday in order to take advantage of any travel offers. In return, all they have to do is take photographs of their travels and write about their experience for Travelzoo’s newsletter to subscribers.
The "Travelzoo Experience" includes a yearly allowance of $1,500 to $2,000 for all employees, plus an extra three days holiday.
“Staff engagement is key to our mission – our staff, the deal experts at Travelzoo, legitimize our offer of the deals out there – they are quality control offers,” says Katy Benedicto, director of human resources at Travelzoo North America.
And the results speak for themselves. The company reported fourth quarter revenue of $23.8 million in 2009, and staff retention is high, registering only 10% turnover.
As the deals disappear as quickly as they become available, managers are encouraged to be fast and flexible when responding to employees leave requests. Travelzoo employees also have the option to work from any one of the company’s 20 offices around the world in order to take advantage of midweek flights and deals.
“Employees are given the chance to live the deal,” says Aaron brown, a senior travel producer at Travelzoo. “Within the company we know the different trips people have been on, so staff can provide valuable insights about the cities, hotels, resorts, and air fare deals that we are publishing.”
Martha Appiah, a producer at Travelzoo has used her Experience bonus to take a short cruise, spend a week in Jamaica and fly to New York. She says that most of her colleagues are avid travelers. “It’s a perk that’s in line with were we work,” says Appiah. “Whereas we could have a gym membership or a free lunch, free babysitting or another similar set of services, I think this is just a direct correlation between the company, what we do and what we all like.”
Have your say
Has retention become an issue for your company post-recession? What engagement tools is your organization using to motivate employees? Does your enagement strategy tie closely with the company's business objectives?
Recommended resources:
Five minutes with David MacLeod and Nita Clarke
How to develop an innovative culture
Essential techniques for employee engagement
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