Dangan Reward Points
Tax-Free Employee Incentive Programme
The Challenge
Dangan Group is an Irish company with three divisions – Dangan Recruitment, Dangan Facilities Management, and Dangan Stationery Supplies.
Dangan wanted to introduce a sales incentive for all non-management staff. The goal was to incentivise employees to reach and exceed their monthly sales targets throughout the year. The company wanted to use the Small Benefit Scheme to reward employees up to €500 over the year tax-free for achieving targets.
The incentive had to be engaging as well as rewarding, and needed to motivate employees to maximize their performance each month.
The Solution
Allgo set up a branded incentive website – DanganRewardPoints.com – that allows invited employees to find out what they need to do to earn points, read FAQs, log in to see how their current points balance, and get all the Ts&Cs associated with the programme.
Every 4-week cycle, employees’ results are measured against target. Employees earning at least 80% of target earn Dangan Reward points. Points are capped at 120% of targets. At the end of each cycle, Allgo emails the points to employees (with an SMS alert). 1 Dangan Reward Point = €1 in value. Employees can also log into the incentive website to review their earned points history.
Based on the cumulative points earned by employees, Allgo also updates a league table after every points award cycle. A leaderboard of the 10 employees with the most points is published on the incentive website. Allgo also broadcasts a branded eZine to all employees every month with the Top 10 Leaderboard and each individual’s position on the overall league table.
To be compatible with the Small Benefit Scheme, employees build their Dangan Reward Points balance through the year, and then at year end-
- Employees who have earned less than €500 in Points are sent an Allgo Mastercard Gift Card for the amount of points earned. This gift card will be completely tax-free for both the employee and Dangan Group under the Small Benefit Scheme.
- Employees who have earned more than €500 will be sent a €500 gift card (tax-free) and additional gift cards up to the total value of their points balance. The additional gift cards are subject to BIK, which Dangan Group will pay by “grossing up” the value of the additional gift cards in payroll.
Employees on the Top 10 Leaderboard at the end of the year are also entered into a prize draw for a luxury weekend for two in 5 star hotel in Ireland. The prize can be done live at a Dangan Group company event, or can be drawn by Allgo with the winner announced by email.
The Result
Dangan Group has successfully used the Small Benefit Scheme to run a year-round tax-free incentive programme. The monthly Employee Leaderboard provides a gamification element, and the monthly personalised comms provides individualised incentive performance results to every employee.
Not only are the rewards tax-free for both Dangan Group and its employees, the programme delivers ongoing engagement and motivation throughout the year, ensuring employee performance is maximized throughout the group.
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Allgo’s numerous clients across all industry sectors have one thing in common – they look to Allgo to provide the ideas, systems and management to incentivise performance and drive results in their businesses.