France is the fifth largest economy in the world and the second largest economy in Europe (next to Germany). France entered the 2008 global recession later – and bounced back earlier – than other impacted countries.
France’s population exceeds 65 million and the national language is French. The literacy rate in French is 99% and the workforce makes up 29 million people.
The marketplace for companies who offer loyalty programs in France is vast because it is a relatively untapped market. This is because France has been late in the game as far as recognizing the value of motivated employees in the workplace.
Hay Group recently completed a study in France that revealed French businesses are not giving employee engagement the attention it needs, and are missing a massive opportunity to release an untapped potential in their workforce. The study revealed a major contradiction in French organizations. While most French executives recognized that de-motivated employees present one of the top three threats to their organizations, it is a subject that is rarely discussed at the board level.
Hay group surmised that this may be because French employees are happy overall and motivation levels are reasonably high. The study did reveal that 82% of employees surveyed were, in fact, engaged in the workplace. While this number is high, it is also one of the lowest percentages when compared to other European countries.
While French employees are motivated, it seems that they haven’t turned their motivation into productive action. The Hay study revealed that a little more than half of the employees who participated in the survey feel that they have everything they need to get the job done. The other half admitted to finding it difficult to work effectively. The result is frustrated employees, less productivity and fewer results for the companies who employ them. This is where the opportunity for loyalty programs providers lay.
Loyalty programs providers enable organizations to implement performance based employee loyalty programs that help organizations to set performance benchmarks. When these benchmarks are reached, this will result in recognition and rewards from employers. This not only motivates employees but also helps organizations to improve their employees’ overall performance.
One of the most important factors when entering the marketplace where motivation is already high is to bring product to the table that will truly excite employees and give them a reason to become even further motivated to achieve results for their employers.
The three most important factors that a loyalty programs provider will need to consider in this regard are how they will structure their program for the French company and worker, how they will deliver their program and what types of rewards and incentives they will offer.
Structuring the Program. Loyalty programs providers who want to enter the market in France will need to clearly understand the internal challenges that French employers face and the barriers that they will encounter in order to overcome them. Since productivity is more of an issue than motivation, loyalty programs providers must demonstrate to their clients how loyalty programs will improve the performance of their employees.
Delivering the Program. Loyalty programs providers must be able to deliver their programs online. Employees get more excited about rewards when they can actually login, see their points accumulate and browse catalogues to see what they are working towards. Software as a Service technology is an excellent solution for delivering loyalty programs. Software as a Service technology provides employers with a method to deliver their program that offers a low cost of ownership, is accessible anywhere there is an internet connection and is scalable to an organization’s growth.
Provide Valuable Rewards. The rewards themselves must be something that the employee will get excited about. A loyalty rewards solution should enable the employee to redeem their points for merchandise, travel, entertainment and more. Products should have the ability to be quickly redeemed in the location where the employee lives and works.
French firms have a lot to gain by focusing senior attention on employee motivation and connecting motivation to performance based rewards. The Hays research study revealed that firms who connect motivation to enablement see revenue growth 4.5 times greater than industry peers. Currently, only half of French businesses are currently in this category.
If you are an Employee Recognition, Incentive or Loyalty program provider who is interested in entering the market in France with the world’s leading “white labelled” Software as a Service (SaaS) based system delivering global rewards, please contact Rob Purdy at 905-477-3971 at Global Rewards Solutions or visit www.globalrewardsolutions.com.