Clothing retail improves rewarding efficiencies

A multinational clothing-retail company achieved rewarding of one in two employees of their workforce and improved on-site rewarding

Client

Our client is one of the world's largest fashion companies with more than 171,000 employees worldwide. Offering fashion and quality at the best price and in a sustainable way and with our fast expansion we are always looking for new talents. The group comprises nine independent brands with 4,900 stores across more than 73 locations.

Challenge

Our client has a well-managed and internally developed system for their Human Resource management process. It was only with the implementation of their employee rewards vertical that they faced multiple challenges. 

The first of the challenges was that there was only a cash form of rewards and this reward cash was distributed along with the salary of the employee. This cash mode of rewards did not allow the employee to receive the entire reward value, because of a flat tax rate that was charged on the reward amount. 

The distribution of the reward amount over the employee’s salary also imposed logistic complications. Each time an employee was rewarded, it was a tedious process to coordinate with multiple teams - namely, the salary processing team, the winners and the HR-BP team.

The next of the challenges were related to the on-site employees who were rewarded. The value of the rewards got reduced because of both the conversion rates and applicable taxes - which reduced the actual value of the rewards.

The Evaluation Process

The HR team at our client conducts employee surveys every six months to understand the requirements of the employees. The reward mechanism came up as an issue during these surveys. The HR team contrived a solution of creating point-based rewards to resolve this issue. The following were the reasons for our client to choose Xoxoday Empuls:

1. Excellent customer service

Xoxoday had a track record of excellent customer service with another business unit. Our client conducted a pilot run during which Xoxoday excelled in their customer responses and services.

2. A simple and user-friendly solution

Xoxoday’s solution was simple and it made the rewards process highly efficient. The multistep overheads related to reward allocation, tax processing, salary processing, etc, reduced to a maximum of two steps for reward allocation.

3. A rewarding mechanism that is global

The points mechanism and support for multiple currencies made Xoxoday highly convenient for international rewarding. Since a considerable number of our client employees are appointed overseas- they needed a solution that accommodated their expat employees.

“Our employees really like the Xoxoday rewarding process. The customer service that they offer is exceptional and commendable. That was the most important criteria for us to decide on them.”

Human Resource Business Partner

Solution

Multiple reward options

The point-based rewarding process of Xoxoday is now used for multiple kinds of rewards - performance based winners, tenure awards, managers and team awards. From just having cash as a reward option, Xoxoday provided a wide variety of rewarding and redemption options across these categories of rewards. With experiences, gift vouchers and perks, the employees could redeem their rewards in a category of their choice. Resultantly, the overall participation in reward programs increased over the implementation both of the off-site and on-site employees.

Tax savings on rewards

Our clients’ employees were losing out on a considerable portion on their rewards when a flat tax was applied. With Xoxoday, they get an exemption in tax to a predefined limit. This allows them to receive and redeem the full amount of reward points.

Increased rewarding efficiency - 52% of employees nominated

The rewarding process has grown much simpler through the use of the Xoxoday Empuls, reducing the many steps of interdepartmental coordination that the HR team had to do. This process simplification has also led to an increased number of peer to peer and manager nominations and rewarding - 52% of all the employees have been nominated in the last FY and out of which 10% have won awards.

Ease of on-site rewarding

The onsite employees can easily be rewarded using Xoxoday through the use of points that can be easily customised as per the currency. Depending on the conversion rates, the reward points could be equated to a higher denomination - as per the discretion of the HR team. The catalogue, too, supports all the countries our client has operations in - that enables the employees to easily redeem their points as per their interests and geography. This has also resulted in a significant increase in the participation of on-site employees.

Our client conducts ‘litmus score’ tests - which are employee surveys that determine the efficiency of the HR initiatives and leads to decide the initiative targets for the HR team for the next quarter. These litmus tests have proven that a majority of the employees of our client are in favour of the Xoxoday program. The HR team also received direct responses from employees that spoke of its advantages. Xoxoday Empuls has truly improved the way and the efficiencies of rewarding our client.