How to inflation-proof your awards program

You’ve likely seen it: the media is awash with facts and figures demonstrating global inflation. According to the recently released Consumer Price Index report, inflation rose in January 2023 by 0.5% from December and up 6.4% from a year ago in the United States. 

Inflation increases the cost of living in an economy and adversely impacts businesses, making it challenging for companies to carry out their operations as they normally would. Running an awards program is one such activity that can be hampered by inflation. 

Let’s look at how to safeguard your awards program from inflation.       

4 effective strategies to shield your awards program from inflation

1. Keep your team in the loop

Communication is key when you are facing an uphill battle. It’s important to keep your team in the loop. Collaborate with your team to plan for any financial risks. 

Be transparent about the financial stamina of your company and any plans to deal with the demands of inflation. Transparency will help you align and avoid potential risks.   

2. Be prudent with your finances 

Making wise financial decisions can help secure your awards program from the effects of inflation. It’s important to work within your budget, and helpful to itemise the necessary costs of running the awards program and follow them to the letter. 

Consider trimming away any wasteful administrative costs. To weather the storm of inflation, it’s important to concentrate your resources on elements that have proven beneficial to the awards program.

A period of an economic downturn might not be an ideal time to experiment. This holds true for your marketing efforts for the awards program; stick to what works instead of burning your resources testing out previously unutilised marketing channels.

Ensure proper bookkeeping. Keeping track of your business’ income, general expenses and expenses related to the awards program will give insight into how to adjust in the event of inflation.       

3. Stay ahead of the curve

To truly have an inflation-proof awards program, you must stay one step ahead. This suggests analysing the economy to identify impending inflation and making preemptive moves to soften its impact.   

Inflation features a general and steady increase in the prices of goods and services in an economy. A smart way to stay ahead of the curve is to make necessary payments in advance. There might be services crucial to the operation of the awards program – think software. Usually, such services demand recurring payments. Since the service providers might increase the prices during inflation, it’s wise to pay early and in advance as much as reasonably possible to help avoid any price hike.

It’s also helpful to buy prizes and other tokens of appreciation early. If their prices in the market skyrocket, you can always use the ones you purchased at lower prices. 

To keep your awards program afloat during inflation, you need to make intelligent investments. While committing to business opportunities for returns on investment is necessary, building alliances are highly rewarding too. Form healthy relationships with other organisations within and beyond the confines of your industry. 

When running an awards program, you can reach out to these organisations for support. The support could be in the form of funds, award items, advertising or otherwise.      

4. Use tech to work smarter with less

Technology is a reliable stronghold for your awards program. It streamlines the process and reduces the need for many hands; the outcome is reduced overhead costs and hassle-free processes.

Implementing technology in the form of awards software leads to enhanced efficiency. Besides reducing the chances of error, such software makes it possible to automate recurring tasks. Whether you want to send emails or other notifications to award recipients or members of your team or forward entries through a multi-stage review or nomination process to the various judges, automating the process makes it easier. 

External automation tools such as Integromat or Zapier can also help with automating the processes of the awards program. (Learn more on how you can maximise your awards program efficiency.)

Inflation can be a challenging time for any business or organisation. However, by being transparent and communicating with your team, spending judiciously, being proactive and leveraging technology, you can effectively temper its impact on your awards program.