Table of contents
Rate changes and point value fluctuations
Taxes, fees, local and international laws
Overview
Simpplr has introduced Rewards to the Simpplr Recognition Suite. With Rewards, app & recognition managers, as well as those with permissions, can distribute allowances to your intranet users each month. The Rewards program is a point-based system, where the recognition manager sets a recurring allowance for users each month (point values can vary), and those points can be exchanged for prizes, all done directly in your Simpplr intranet.
There are four types of allowances included in rewards; Individual, Users, Manager and Audience allowances. As a recognition manager, you can use any combination of these allowances; just one or all of them. However, any single user only ever receives one allowance type.
What to know before getting started
Because rewards require additional billing beyond the standard SaaS license fees, a representative from your org will need to sign an additional non-negotiable Rewards terms agreement with Simpplr whereby your org agrees to pay Simpplr for the face value cost of the gifting on specified terms. Contact your account manager to learn more about this.
You will need to procure a budget beyond just the cost of the tool to fund the cost of gifting in the system.
In order to utilize the rewards feature, you'll will need to follow the standard process of creating peer recognitions. This process hasn’t changed, and you should think through all options when it comes to the naming, connection to company values, and badges. Since all rewards points are gifted with peer recognitions, not having any peer recognitions live when rewards are enabled will make it impossible to gift or receive points.
Enabling rewards/Budget setup
The rewards budget allows organizations to set up a desired spending amount for its rewards offerings. Simpplr will track the organization’s spend against this number and send alerts to recognition managers as it approaches this number so that recognition managers can either lower allowances or attempt to get more budget.
Note:
The budget tracking feature is currently built for alerting purposes only. It has no hard stop and will let organizations run over their budget. We plan on allowing organizations to set the budget with a hard stop in a future feature enhancement.
To get started as the app manager or recognition manager, head to Manage > Recognition to head to the main Recognition menu.
- Click into the Rewards tab. Then select Add budget. This will be your organization budget, or how much you want to spend in any given fiscal quarter or year.
- Decide how you want your budget configured. You can configure frequency, as well as when your fiscal year begins. Given that you likely won't begin the Rewards program at the same time as the start of your fiscal quarter/year, you can choose the budget amount to be applied for the current year here as well. Choose the full annual budget, a pro-rated annual budget or a custom amount to be applied to the current year.
Allowances
The users allowance, while the most common allowance type you'll likely use, is the lowest specificity and will be overridden by any other allowance for an individual. So, for example, if I’m eligible for the manager or audience allowance, that would replace the user allowance.
Note that ALL allowances are use-it-or-lose-it every month, meaning you cannot save allotted points month-over-month. If you do not distribute points by the end of the month, they will be gone. This encourages more frequent point distribution. Simpplr does not charge for unused points.
Individual allowances
The individual allowance is the highest specificity and will override any other allowance for that person. So, if I am eligible for an audience allowance and an individual allowance, I will only get the individual allowance.
Manager allowances
Manager allowances apply individually to every people manager, replacing any user allowance they have. Users eligible for both a manager and audience allowance will receive whichever single allowance has the greatest value. For example, if I am eligible for both (I’m a manager but I’m also in an audience that has an allowance), I should get whichever allowance is of the highest value (as long as I don’t also have an individual allowance, which would override both).
Note that having a manager allowance does not limit you to only distributing points to your team.
Direct report allowances
Managers also have the option to set variable direct report allowances. Below is an example of a manager allowance with a variable amount. Here, all people managers will get a base of 50 points a month plus 10 points per direct report. So if you are a people manager with 4 direct reports, and you have the allowance set to 10 per direct report, that's 40 total points.
The base amount can also be set to 0 if you prefer to give budget to people managers entirely by team size.
Audience allowances
Audience allowances apply individually to each audience member, replacing the users allowance these members may have. Users eligible for both an audience and manager allowance will receive whichever single allowance has the greatest value. If a user is in two audiences that both have an allowance value, that user will only receive the single value that is the highest.
Note that you will be able to see all audiences created here, even if you do not have permissions to manage audiences in the intranet.
In the example below, the organization has given its 1,517 full time regular employees 50 points a month to gift and its leaders (however they have defined that audience) of 57 users 1,000 points a month to gift with recognition. If a user is removed from an audience, they will not lose any points they were given while in the audience; but the following month, they won't. receive points if those points are given to the audience.
Allowance stacking
Users in one or more allowance groups from individual allowances, manager allowances, or audience allowances will get the highest amount of points, regardless of which allowance that point value is in. The points are not in addition to each grouping. However, users in the individual allowance list will get that allowance regardless of it being the highest or not; it is a full override.
Note:
If a new user joins in the middle of the month, and falls into one of the allowance groups above, they will receive the full month's point value upon starting, regardless of the specific day they join. Similarly, if a user leaves the company, your org is eligible for a credit for that user's unused points. Talk to your account manager for more info.Currency conversions
As the app or recognition manager, you're able to set currency conversions so when reward points are distributed internationally, the value is automatically converted to the user's form of currency. Note that all reward redemptions are billed in USD. A recognition manager can change the USD amount, and it will reflect the current foreign exchange rate value for the given currency in real time.
Points-to-USD conversion is always 10 points to $1 USD in the system. However, optionally, you can set custom currency conversions per 10 points. You might do this to control the purchasing power from one region to another (e.g., Mexico is generally cheaper to live in than the United States so most organizations with employees in Mexico will want to lower the value of 10 points for users paid in Mexican Pesos).
Any world currency can be added to the conversion table. By default Simpplr will populate the table with all payroll currencies for users in the system. Recognition managers can add additional currencies even without users having the given payroll currency in case they are preparing for new hires.
Simpplr will allow organizations to control cost of living (purchase power parity) for points by the user’s payroll currency. This is a new field to sync with the user data. App managers can configure this data. Note that if configuring this new syncing field for the first time, syncing will take up to 24 hours unless a scheduler is manually run.
For users with any non-USD payroll currency, the recognition manager can set custom conversion from 10 points to n USD in the given currency. For all users that do not have a valid payroll currency, Simpplr will use the standard USD conversion of 10 points to $1 USD.
The currency conversion tab will show how many users in the organization do not have a payroll currency set.
Rate changes and point value fluctuations
All users will get a USD value for their points at recognition gifting time. This value will be based on the custom currency conversion table. All USD payroll currency users will always have 10 points equal $1 USD, but other payroll currencies might have some point value fluctuations. Check out the below scenarios for more.
User transfers and gets a new payroll currency
If a user receives points with a given payroll currency, and then their payroll currency changes and the conversion is at a different rate, the user will not lose any value as their points always have a true USD value. However, they might see some buy power changes since the new points will be either worth more or less based on the custom currency conversion table.
Recognition manager changes custom currency conversion
If a recognition manager changes the value of a given currency while the rewards system is active, it will affect only transactions that happen after the new rate is saved. Since the users will have a hidden USD balance adjusted when they receive recognition with gifted points, that value will not be affected but future points they receive gifted with recognition will be based on the new rate.
FOREX conversions
When gifting, only the custom conversion rate is used to calculate the USD value of points, but when redeeming, the total value in USD for a user’s points is made available to be converted to the given redemption currency. This conversion is based on the true FOREX rates from Simpplr’s partner Tango Card.
Gifting points
Recognition managers will first need to enable peer gifting in the Manage > Recognition > Rewards menu.
To reward colleagues, users simply need to create a recognition the same way as always. Only now, they'll see a toggle switch to Gift points. Flip the switch to set the amount of points you'd like to include in your recognition. If you're recognizing multiple colleagues, the points you gift will be split evenly among them.
All users will see the amount of points they have allotted, and can choose up to 1,000 points to award at a time. If you do not have the amount allotted, the option to give will be grayed out.
The recognition will be visible to everyone who can see where you posted it (i.e. home or site feed) but the points you gave will only be visible to the giver (you), the receiver (colleague), their manager, and the recognition and app managers.
Points will not be available to spend until 24 hours after the gifting occurs.
Gifted points are not capped, meaning users can hang on to their gifted points as long as they'd like to save up for larger prizes.
Rewards store
The Rewards store allows users to redeem their points for real prizes, including:
- Gift cards
- Prepaid cards
- Charity donations
Gift cards, Prepaid cards and Charity donations
The main menu of the Rewards store (Gift cards tab) displays gift cards you can browse to trade in points for. You can search for specific brands, stores, etc. or categorize gift cards by type. You can also sort by location, and there are specific gift cards available depending on the location you choose.
Note:
The merchants displayed here are not sponsors of the Rewards program and are not affiliated with Simpplr.The Prepaid cards tab allows you to spend points on an international MasterCard prepaid card.
The Charity donations tab allows you to select form a list of charities to donate your points (currency value) to.
Clicking into any reward option will bring up a menu where you can choose the amount of points you'd like to trade in, as well as the monetary value of those points. Some merchants have a fixed amount to choose from, like Apple.
Some merchants, like Amazon for instance, allow you to manually input any amount of points you'd like to trade in or trade in all your points at once.
Once you've made your selection by clicking Checkout, the following screen will ask you to check the box confirming you understand your purchase is non-refundable. Then you'll be prompted to enter the email address of where you want the reward sent. This email will contain the reward.
Order history
The Order history tab will bring up all orders you've ever placed with the Rewards store. This is useful in case your email containing the reward gets lost in spam or isn't delivered for any reason. You're able to resend any reward at any time. Note that as of now, this list cannot be exported.
Analytics
Reward activity
From the main Rewards Overview screen, scroll down to view rewards activity and metrics on points given and points redeemed form across the org.
Here you can see all activity, along with financial information done in the timeframe you set (choose from 30 days, 3 months or 12 months). You can also download a CSV of this data, which can be used for tax reporting or sharing with Finance teams.
Reward analytics
To view full analytics for reward distribution and redemption, head to the Recognition analytics menu. There is a new tab for recognition managers here labeled Rewards.
Reporting
Since rewards and redemption have a financial component, Simpplr offers detailed reports for all activity that has a financial impact. From Manage > Recognition > Rewards > Overview, recognition managers can view activity tables for both Gifting and Redemption by date range. These activity tables can be downloaded to CSV. The CSV activity reports contain many more fields to cover any reporting need for an organization including, USD values, payroll currencies, transaction currencies, exchange rates, departments, locations, etc.
From these reports, organizations can examine real costs as well as charge/pay taxes for their employee gifting program.
Invoicing
Simpplr bills its customers for points gifted in the system in arrears. This is known as a Bill on Issuance model for gifting (not issuance of allowance). Twice a month Simpplr will invoice your org for gifting activity during the previous period. These invoices will have net-15-day payment terms.
This model allows Simpplr to offset its risk for rewards costs while allowing customers to not prepay for points in the system - locking up thousands of their dollars before any value is received. It also helps organizations no longer worry about making users redeem points in order for them to be accounted for on a given fiscal year budget.
Taxes, fees, local and international laws
Taxes
Simpplr does not consult on any taxes. However, generally, employee rewards programs are taxable, and organizations should consult their accountant on if and how taxes should be applied to their users. Utilizing the downloadable activity tables in Manage > Recognition > Rewards > Overview, an organization can assess taxes and fees on either gifting or redemption.
Fees and local laws
Simpplr does not know local laws or regional fees. Organizations should be aware of any additional compliance costs to running an employee rewards program. To the best of Simpplr’s knowledge, no additional fees are required for the use of rewards and does not assess any fees.
Regulations and international laws
It is the responsibility of all Simpplr customers to abide by international laws or governing regulations. Simpplr will also abide by international governing agencies. This includes prohibiting the transmission of monetary gifts to:
- Russia
- Ukraine
- Myanmar
- Cuba
- Venezuela
- Iran
- North Korea
As needed Simpplr reserves the right to change its rewards features to meet regulatory conditions and interpretations.
FAQ
Q: Can I restrict allowances to certain employees (e.g., part-time workers, contractors, interns)?
A: No. you cannot restrict point allowances to certain groups of employees.
Q: Is there a setting to turn on and off points that carry over?
A: No, points do not carry over at all in allowances.
Q: Does Simpplr bill against the budget amount?
A: No, Simpplr will only bill you at the time of gifting.
Q: If I am removed from an audience that received an allowance, will points get deducted?
A: No, points will not be immediately deducted from that month's allowance, but you will not receive the points when allowances refresh for that audience in the following month. Points do not carry over.
Q: Is there a limit to the number of points a person can receive?
A: There is currently no limit on the amount of points one can receive. Best practice is to spend points more often than not, unless you're saving up for a major prize.
Q: What does it mean when Simpplr says, "We bill in USD”?
A: We bill all rewards gifting totals in USD regardless of the customer organization location.
Q: Will you refund for points that are not gifted?
A: No, because there is no cost to ungifted points so there is nothing to refund. Costs are only incurred upon spending of points.
Q: Can I set Charity donations, to a local office? For example, could I specify my local United Way office?
A: No. Charity donations cannot be specified to a specific location.
Q: If a new user joins the company in the middle of the month, will they receive partial or full amount of whatever monthly allowance they're a part of?
A: They will receive the full amount.
Q: What happens to unused points if a user is de-provisioned from the intranet?
A: Simpplr will credit back (for a service fee) unused points upon request. Otherwise those points become voided.
Q: Are there other options for rewards besides gift cards and prepaid cards?
A: Currently, no. All points must be exchanged for virtual gift cards.
Q: What if the reward vendor is one of our competitors? Can we block purchases to a vendor?
A: No. Vendor purchases cannot be blocked.
Q: What happens if I change allowances in the middle of a month? Do they take effect immediately?
A: No, allowance changes will take effect on the 1st of the following month.
Q: How is the reconciliation handled with changing exchange rate?
A: Customers are charged $1 USD for every 10 points gifted or for the custom purchase power parity currency conversions set up by the organization. Redemption uses live Forex rate (updated once daily).
Q: Can points be gifted on recurring awards?
A: Currently, no. Only peer-to-peer recognition supports gifting of points.
Q: Is the allowance credited at a fixed time for all users or based on user timezone?
A: Allowances are credited at a fixed time (UTC).
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