Employee merchandise incentive program, what is it and how to build it

In today’s competitive business landscape, employee engagement and satisfaction are more critical than ever. One of the most effective strategies to boost morale, reinforce company culture, and drive performance is by implementing a well-thought-out employee merchandise and incentive program. This approach not only rewards your team for their hard work but also aligns their efforts with your company’s long-term objectives.

In this comprehensive guide, we will explore why an employee merchandise and incentive program is essential for your business, how to get started, how to scale your efforts as your company grows, and most importantly, how to measure the impact of your program to ensure it delivers the desired results. Under our Employee Engagement track we can also assist you in setting this up.

What is an employee merchandise and incentive program?

An employee merchandise and incentive program is a strategic initiative designed to reward employees for their contributions and align their efforts with the company’s objectives. These programs typically include branded merchandise and anniversary gifts that employees can earn through various achievements, such as hitting performance targets, completing training modules, accumulating years of service, or contributing to team goals. By integrating high-quality merchandise into your incentive strategy, you create a system that drives immediate action while also fostering long-term brand loyalty and employee engagement.

Why use merchandise in an employee incentive program?

1. Immediate incentive: High-quality merchandise acts as an immediate reward, making employees feel appreciated and motivated to continue performing at their best.
2. Long-term (employer) brand ambassadorship: The more employees use and wear branded merchandise, the more they internalize and promote the company’s brand, both consciously and unconsciously.
3. Reinforced company culture: Consistent use of branded merchandise helps reinforce company values and create a strong, unified culture among employees.

You can read more about the general impact of strategic merchandise on your marketing and HR goals in this article.

Step-by-step guide to building a successful employee merchandise and incentive program

Step 1: Define your goals, metrics & team

Start by clearly defining what you want to achieve with your program. Are you looking to increase employee engagement, improve training participation, or boost overall performance?

• Set a baseline: Understand your current metrics to measure the effectiveness of your program.
• Determine key metrics: Identify specific KPIs, such as employee satisfaction scores, training completion rates, and productivity improvements.
• Assign the team: Assemble a cross-functional team to oversee the program, ensuring HR is involved, but also include representatives from various departments to provide diverse perspectives and ensure the program resonates across the organization.

Step 2: Start with the right foundations

As your employee merchandise and incentive program grows, scalability and efficiency become critical. Establishing the right foundations from the outset will ensure long-term success and avoid potential pitfalls as the program expands. Here’s how to do it:

Choose the right platform

1. Scalability from the start: It’s crucial to choose a platform that can grow with your program. You don’t want to switch platforms midway through your program because it’s become too successful to manage. Starting with a scalable platform ensures that your program can handle increased participation without missing a beat.
2. Flexibility to experiment: Not every campaign will be a home run, and that’s okay. A good platform offers the flexibility to test different campaigns and adapt to what works best for your company culture. This adaptability is key to refining your program and finding the perfect fit for your team.
3. Effortless management: Partnering with a platform like Sunday Wardrobe allows you to offload the hassle of managing orders and logistics. You don’t want to become a victim of your own success, overwhelmed by the administrative burden of processing orders and shipments. A dedicated platform handles these tasks seamlessly, letting you focus on strategy rather than logistics.
4. Data-driven insights: A robust platform not only manages orders but also tracks the impact of your merchandise. Sunday Wardrobe, for example, keeps detailed records of what has been ordered, how often items are worn, and how this translates into better brand ambassadorship. This data is invaluable for measuring the success of your program and making informed decisions moving forward.

Outsource logistics

• Global reach: Even if you’re starting with a pilot program in one country, consider the potential for global expansion. Choose a logistics partner capable of handling international shipments, whether you’re scaling the program to other regions or incorporating it into global events.
• Consistency in delivery: Reliable logistics ensures that your merchandise is delivered promptly and in perfect condition, no matter where your employees are located. This consistency is key to maintaining the credibility and effectiveness of your program.

Set up a webshop

1. Flexibility in choices: Employees appreciate the ability to choose rewards that resonate with them personally. A well-designed webshop offers a variety of options—whether it’s t-shirts, polos, sportswear, or travel bags—allowing employees to select items that they’ll actually use and cherish.
2. Coin system for easy rewards: A coin system adds another layer of engagement, enabling employees to earn and save coins for various achievements. This system encourages participation and allows employees to work towards more significant rewards over time, enhancing the overall impact of your program.
3. Enhanced user experience: A well-designed webshop increases the perceived value of the merchandise. When items are displayed professionally and the user interface is intuitive, employees feel like they’re shopping from a high-end fashion line rather than selecting from a catalog of corporate gifts. This elevates the cultural significance of the merchandise within your company.

Choose the right infrastructure

• Volume handling: Ensure that your platform can manage varying order volumes, from a few weekly orders to large-scale shipments. The ability to scale storage and distribution as needed is essential for maintaining the program’s efficiency and effectiveness.
• Integration capabilities: As your program grows, you may want to integrate merchandise incentives into other areas of your business, such as onboarding, anniversaries, or social media engagement. Choosing a platform with strong integration capabilities allows you to centralize these efforts, creating a seamless experience for your employees.

Starting with the right foundations—selecting the best platform, outsourcing logistics, and setting up a flexible and user-friendly webshop—will set your employee merchandise and incentive program up for long-term success. By investing in these areas early on, you’ll ensure that your program can scale efficiently, adapt to changing needs, and deliver measurable results.

Step 3: Match your program with an engaging and ongoing employee experience

Creating a successful employee merchandise and incentive program starts with a comprehensive onboarding process and continues with ongoing engagement strategies that foster loyalty, continuous development, and team unity. Here’s how to ensure your program sets the right tone and sustains long-term enthusiasm: Engage from day one with an onboarding merchandise kit Your onboarding process is the first opportunity to make a lasting impression on new hires. A well-curated onboarding merchandise kit not only welcomes them to the team but also immediately connects them with your brand. Include essential items like branded caps, t-shirts, socks, tote bags, and water bottles. These tangible expressions of your brand help new employees feel valued and part of the company culture from day one.

Incentivize continuous learning and development

Encourage ongoing learning by tying merchandise rewards to your training programs. Offer exclusive items as incentives for completing training modules or earning certifications. Implement a tiered reward system that allows employees to earn increasingly valuable merchandise as they progress in their professional development. Aligning your training modules with specific merchandise rewards motivates employees to continuously improve their skills and expertise.

Celebrate achievements and milestones

Recognizing and celebrating employee milestones is crucial for reinforcing positive behavior and fostering a sense of loyalty. Personalize these celebrations by rewarding significant achievements with customized merchandise, such as a bespoke jacket or a special item. Public acknowledgment of these milestones—whether through company newsletters, the intranet, or social media—amplifies the recognition and sets an example for others to strive toward.

Boost team spirit with events and kickoffs

Team events and company kickoffs are key opportunities to build unity and reinforce your brand culture. Provide merchandise that employees can wear during these events, such as branded hoodies, jackets, or hats. Not only does this create a sense of belonging and pride, but it also strengthens team cohesion as everyone represents the company together. Kickoffs are also an ideal time to introduce new merchandise collections or limited-edition items that align with the goals or themes of the event.

Keep the momentum with activations and product launches

To maintain engagement, regularly introduce new merchandise and activation campaigns. For example, when launching new products or services, provide employees with launch kits that include promotional items and relevant marketing materials. Additionally, run activation campaigns that encourage participation in company initiatives, offering limited-edition merchandise or exclusive event access as rewards. Periodically refreshing your merchandise selection ensures that the program remains exciting and continues to captivate employee interest.

Step 4: Pro tips for a highly successful employee merchandise and incentive program

Implementing employee incentive programs, including merchandise rewards, can have a transformative effect on your company culture and employee engagement. To maximize the success of your program, here are some expert tips:

Launch with impact and keep the momentum going
Launching your program with a strong, memorable campaign is crucial. Think of it like a fashion brand—people need to be aware and excited about it. Plan a launch event, take professional photos of the merchandise, and communicate the program effectively across all internal channels. Keep the buzz alive by regularly updating your employees with new items, upcoming launches, and success stories. An internal marketing plan is essential to ensure ongoing interest and participation. Read the PGS case on building their internal merchandise program.

Involve employees in the process
While you may start the program with a top-down approach, it’s important to listen to your employees as the program evolves. Solicit feedback on the types of merchandise they would like to see and even consider involving them in the design process. This not only ensures that the merchandise resonates with your team but also increases their sense of ownership and engagement with the program.

Celebrate employees wearing the merchandise
Recognition is a powerful motivator. Encourage employees to share photos of themselves wearing company merchandise on your intranet, social media, or internal newsletters. This not only highlights the merchandise but also fosters a sense of community and pride. Publicly acknowledging those who actively participate will inspire others to join in.

Manage stock wisely
While it’s important to have enough merchandise on hand to meet demand, be cautious about overordering. Limited editions should remain just that—limited. Having leftover stock from years ago can devalue the exclusivity of your items. It’s better to run out and create anticipation for the next release than to be stuck with outdated merchandise.

Maximize the coin system’s potential
If you’re using a coin-based incentive system, regular reminders are key to keeping it effective. Make sure employees know how many coins they have, how they can earn more, and what rewards are available. Regularly highlight different ways to earn coins, such as achieving performance targets, referring new hires, or participating in company initiatives. Align these opportunities with your company’s core values to reinforce desired behaviors.

Focus on quality
The quality of the merchandise you offer speaks volumes about how much you value your employees. Cheap, poorly made items can backfire, leading to disappointment rather than motivation. Invest in high-quality, well-designed merchandise that employees will be proud to wear and use. Partner with experts like Sunday, who can collaborate with your internal design team to create fashionable, on-brand items that truly resonate.

Align Rewards with Core Values
To ensure that your incentive program supports your company culture, align the rewards with your core values. For example, if innovation is a key value, reward employees for creative problem-solving or for suggesting new ideas. This alignment reinforces the behaviors you want to see more of within your organization.

Choose the Right Partner
Selecting the right partner to help you build and manage your merchandise program can make all the difference. Work with a company that has the experience and expertise to guide you through the process, avoid common pitfalls, and accelerate your success. An experienced partner can offer valuable insights, streamline operations, and help you achieve your goals faster.

Conclusion

A well-executed employee merchandise and incentive program can significantly boost engagement, performance, and loyalty within your organization. By following this guide, you’ll be equipped to create a program that not only rewards employees but also strengthens your company culture and brand identity. If you’re ready to get started, the team at Sunday is here to help you design and implement a program that aligns with your goals and drives meaningful results.