I'm trying to develop a new training incentive program and am looking at starting a rewards program. For example, each class they attend is worth X number of points. Points are redeemable for merchandise.

Does anyone do anything similar? Does it work? Are there tax implications (in other words does the trainee have to pay income tax on merchandise redeemed? Besides merchandise and money, what other things could be offered?

Thanks in advance for any help!!

My philosophy (based on research and actual experience) is that when the training is directly linked to business goals and job performance (i.e. the WIIFM is crystal clear) and when the training experience is meaningful, enjoyable, enlightening and applicable, one doesn't have to offer extra trinkets to get people to go.

I agree with FF, but I had to do something because there was NO training dept before I got here. So, anything I could do to "reward" them helped. We use what we call "B" Bucks. $$ Amounts printed on green paper and they get X amount for class. (I also give the $$ out for other things here --- trivia) I have little things that have our logo on it and I let them "buy" stuff with it.

They enjoy it.

Yes, My company offers incentives for just about EVERYTHING, not just training. Basically the way it works, is if an employee goes out of their way to assist you, or if they have performed above and beyond their expectations, they get a "extra effort" buck. These can be saved and turned into the HR dept for a reward of their choice, including company merchandise and local vendor gift cards.

Now, that is all changing because of tax implications. The employees will no longer be able to receive gift cards. Anything that can be redeemed for cash is going to be taxed. So, if there is a 5.00 gift card awarded to an employee, they have to pay 2.50 of that in taxes. Just doesn't make a lot of sense to continue doing it.

We are in the process of redeveloping our reward/incentive system to exclude the receipt of gift cards. I'm not sure how well this is going to go over with the employees! Probably like a ton of bricks!

Whatever happened to "you have a job, we pay you and expect you to do well at what we paid you to do. In order to help ensure that, you will take this training"?

Doing something is exactly what I'm talking about -- if there was NO training department, what better way to get people coming then to make the benefits of it crystal clear (linked to good performance) and make the training meaningful and enjoyable to attend. Frankly, I don't want someone in class who is there just because they got a prize or a few extra bucks to be there.