According to human resource managers and compensation supervisors, DVD players were among the most popular gadgets that point mongers selected last year. Some companies' points programs allow them to exchange points one for one with airline frequent flier mileage, enabling point hoarders to win tickets with as few as 20,000 points. Nortel Networks is one of dozens of tech companies leading the alternative compensation charge. According to executives at companies that are powering the point programs, the idea is destined to become a common compensation practice within the next several years. How to recognize and reward employees has always been a real hot topic.
Points are a compelling tool that gets companies a competitive advantage.
Other nontraditional rewards programs aren't based on points but work similarly via online gift certificates. In this emerging cottage industry specializing in alternative rewards, Santa Clara, Calif.-based BeyondWork recently launched a product called GiftPass. The program, used by Charles Schwab and Wells Fargo workers, uses patent-pending technology to create an online mall tailored to a specific company's work force. Employees can redeem certificates or even donate to charities in a virtual store. Fueling their popularity with technology workers, virtually all of the points-based perk programs operate entirely online.