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What Type of Recognition Do Employees Want? (Types & Ideas)

Posted: July 11, 2023

A strong team will complete tasks with high quality before their deadlines. Every company wants to create a resilient group that will complete tasks at a high pace and on consistent bases. This, however, is not a simple quest, and companies must use their skills, time, and energy to build such a team.

Employees are the backbone of any company. They deal with the customers, complete multiple tasks and work continuously in a company. These completed objectives and functions must be recognized. So many ask What type of recognition do employees want?

Employee recognition has many forms, and team leaders must use the best-suited program to ensure that every team member feels recognized throughout their career. The praise should be a weekly or monthly task to ensure the team feels validated and appreciated, leading to higher productivity and motivation.

According to Zippia, only 60% of employees receive recognition and appreciation. Of that 60%, only 3% say they are recognized frequently enough.

What Does Giving Recognition Mean For Employees?

Recognition occurs when an employee or team completes tasks and objectives or reaches goals that the team manager or company provided. The employee will have to complete multiple tasks within a time frame.

Recognition given to employees can have multiple benefits. When employees feel appreciated, validated, and recognized, they tend to have higher production and motivation and strive in their everyday tasks and objectives provided by the manager or company leader.

Companies can reinstall their company values through recognition programs. By looking after and recognizing employees, the company will reinforce its core values of caring for them.

A business leader can use recognition to encourage employee engagement. Employee recognition can increase their engagement. Employees tend to share more innovative and creative ideas when they feel heard and recognized by the company.

Many will ask if incentives really work and if they genuinely impact the company culture. This is true; by using non-monetary recognition programs regularly, a company can build a strong team and a more robust company culture that will increase multiple aspects within the company.

Small businesses can access benefits of employee recognition by using the same format or type of incentives throughout their business, motivating and recognizing the team for their dedication and hard work.

Challenges Of Recognizing Employees In a Modern Work Environment

There are multiple methods of recognition of employees for their achievements and high performance. Non-monetary recognition leads to employees receiving extra off days, working from home, or leaving the office earlier on some days.

The challenges for this specific program will leave the company without its best employee. Allowing them to have an extra day off, or work shorter hours, as stated by the program, will leave the office with one employee short. This can lead to burnout of employees covering for the absent one, work needing to be completed, or late submissions of tasks connected to a deadline.

Employees will work hard to feel recognized and appreciated by their manager or company CEO. This can lead to employees manipulating and cheating their way to the top. Competition is healthy; however, once employees start to use external methods to reach the top, the company might lose the power and benefits of its recognition program.

One of the biggest problems that occurs with employee recognition programs is the limitations that are created. Employees will work hard on the one project that will give them recognition while avoiding all other tasks and goals. The employee will only complete one task expecting praise while neglecting all other less critical duties.

What Do Employees Want?

Employees want recognition. More importantly, they want it on a consistent base. When a company creates a program that incentivizes and recognizes hard work, it must ensure that it can be repeated at least once a month throughout the year.

Companies should use reputable incentives to assign it to an employee without skipping a month or a week. Some incentives can cost the company money. These monetary bonuses can occur once a quarter or twice a year to ensure they can be repeated, while non-monetary recognition occurs once a month or as the goals are being completed.

Employees want consistency not only with when the recognition programs are handed out but with the same intent and measuring stick. If an employee receives a shoutout in front of all peers, a similar task completed by another employee should receive the same type of recognition.

All employees must be informed of these programs if companies have recognition programs. A low 58% of employees that work in a company with a tangible reward system know of the program. Sales teams will use incentives to ensure that the members are motivated. Employees want to know that they will receive recognition and appreciation as they complete their goals and objectives.

Most employees want to feel appreciated and validated. The recognition program will ensure that employees and company teams receive recognition and appreciation throughout the year for their hard work and dedication to the company.

Surveying all employees to discover what they want will be the best feedback the company needs. Rewards and recognition should be determined by what the employees want and need, not solely what the employer can afford or provide.

When To Give Recognition?

Timing is everything when it comes to recognition programs. Employees will become lazy and only complete some tasks if a company provides recognition early. If a company offers credit too late, employees will feel undervalued, and the program will not have the necessary effect that the company desires.

Department heads can start by rewarding employees based on performance. When an employee completes a difficult assignment or project, the manager can recognize and reward the employee. This will allow the employee to feel validated by their hard work. Performance-based recognition is one of the popular rewards in the business world.

Other great times to reward an employee or team are when they are promoted or advanced within the company, when an employee completes a class, achieves a new level of professional development suggested or required by the company, or on employee anniversaries or birthdays.

Employers can provide staff members with recognition when they improve areas highlighted as troublesome by their manager or employer.

Check Out Why Employee Recognition is Essential for Performance Management:

Recognition Types

There are various methods, formats, and types of recognition programs. Each recognition reward will benefit different employees and allow the business to access various benefits through the recognition type.

One type of recognition will only suit some employees or employers. Thus, finding the balance between what works for each employee and the employer will be critical. The best practice is to have multiple types of recognition available and allow the employee to pick or determine the reward that fits them.

Public Recognition

Public recognition refers to employers rewarding their staff before the entire company, team, or peers. The employee will receive a few words of recognition due to their performance. This will allow the whole group or company to identify the hard work and performance that the individual did to achieve this recognition.

Shout Outs

Shoutouts are when the employer or team manager shares their gratitude to a specific person in front of the team. The manager or employer will share the employee’s name and recognize and share their hard work and performance with the rest of the team. They are validating and appreciating it.

Peer-to-Peer

Peer-to-peer recognition is when an employer or manager acknowledges a set of skills, performance, or goals an employee achieves and praises them by sharing it with others. The employer will honor and recognize the hardworking employee to their peers to ensure the other employees can appreciate the hard work. This will motivate them to work hard and increase their performance to ensure they receive the same recognition as their peers.

Use Social Media

Social media is a robust platform that allows companies to share their team achievements with the world. A post or story on these platforms to recognize and appreciate hardworking employees will lead to a motivated and valued team.

Social media posts will be acknowledged by peers and team members and by the entire following of the company page. This will allow external individuals and companies to recognize the employee’s hard work and dedication. More people will remember the employee and feel validated and appreciated throughout the program.

Team

Individual recognition will differ from a team incentive program. There will be more individuals to consider, and employers must find a reward system to benefit the entire project team. The aim should be to ensure the whole team receives the reward, making them feel acknowledged, validated, and appreciated.

Incentive Trips For The Team

Incentive trips are rewards programs allowing the team to travel without paying for expenses. These trips usually will be to a location where the team can relax and recoup or complete multiple team-building exercises to strengthen and reenergize the team. Incentive trips are a powerful tool companies can use to reward hard work. These trips depend financially on the company, and the employer must ensure they budget for them.

Appreciation To The Best Team

A strong team will need external motivation, which can be achieved through recognition. Showing appreciation in front of the entire company will ensure that the company understands and rewards each individual’s hard work to provide a successful project. By acknowledging the team in front of others, the entire group will experience gratitude and appreciation for their work.

Structured

Structures recognition comes in the form of a specific location within the company. A fixed location will be used to recognize and appreciate employees. This location can be an entire wall, a corner in the business, or a company room with pictures, prizes, and appreciation text to a team or employee. Employee of the Month, or performance recognition, can be placed on the structure where everyone can identify the hardworking staff members of the month.

Wall of Recognition

A wall of recognition is a structure where employers can set pictures of the employee or team that are rewarded for their strong performance. The wall will allow individuals that pass by to identify hardworking individuals and teams within the company.

Outstanding Employee Event

Creating a structure that consistently praises employees for their hard work is critical. A personal event can be hosted monthly or quarterly to ensure that every team member and employee knows who the hardworking individuals are. This will show recognition to the standout employees and motivate other employees to achieve their goals to ensure that they can be recognized at any future event.

Private

Sometimes acknowledging hard work in private will do the job. Employers do not have to overcomplicate or create a big event to show recognition. Some employees prefer a firm shake of the hand and the words well done to feel appreciated and recognized. Private recognition only works for some, but most employees will appreciate this gesture above not being recognized.

Instant Performance Feedback

Instant performance feedback will allow the employer or manager to provide instant feedback on a project or task the employee completed. Going through the entire project and stating clear positives will enable employees to feel they have achieved something. Many use this feedback opportunity to communicate negative aspects, but employers should provide the good and the bad throughout the project.

The sharing of positive feedback will boost the confidence of the employee. This form of recognition will lead to employees going the extra mile or reaching the ultimate goal to ensure that they receive the recognition reward.

A Simple Thank You!

Sometimes a simple thank you will do just fine. Managers can say well done to the employee when they complete various tasks or achieve set goals. The simple thank you will allow the employee to feel validated, increasing productivity and motivation. Be careful not only to use this method.

Time-offs

After a long and hard-fought project, employers can give employees a few hours or days off to rest. The employees will feel appreciated and valued and return with more energy, motivation, and inspiration to tackle the next big task.

Milestone

Instead of celebrating the completion of a project or a goal, employers can focus on milestones. Milestone moments recognition will increase employee appreciation and motivation for the rest of the project. This will allow employees to feel supported throughout the entire project. When they feel stuck, they can ask for support and will engage throughout the project due to the milestone recognition.

Why Should You Personalize Employee Rewards and Recognition?

Every employee is different. Some employees enjoy the recognition and rewards in public spaces where every staff member can put them on a pedestal, while others enjoy the enclosed thank you with the feedback to ensure that they can improve.

Employers must know each team member’s style and method of appreciation. Employees will not experience the desired recognition and reward when the wrong type of recognition is used. Thus, providing employees with multiple recognition options will reward them best.

FAQs

What Do Employees Want To Be Recognized For

Performance, anniversaries, and birthdays are some of the reasons that employees want to be recognized. Other reasons can be due to the achievement of a goal, the completion of a project, or promotions.

How to Recognize Success at Work

Employers can use a variety of methods to show appreciation. There are structured ways, such as events and walls, that lead to recognition. Public recognition can be through shoutouts, peer-to-peer appraisal, or sharing the individual employee on social media platforms. Some employees prefer private recognition where only the team managers and the employee know of the success and the hard work.

Final Considerations

Employee recognition can influence company culture. Monetary rewards can significantly benefit, but a few simple words in public to show appreciation to an employee might last longer and have a bigger impact.

There are many types of employee recognition, and every method has its place within the company. Instead of spending too much time and money, companies can ask employees to provide straightforward recognition programs to suit them. In this way, the employer and manager can thank the employees for their hard work, and employees will experience validation and appreciation regularly.

Kelly Murphy

PRESIDENT & FOUNDER

Certified Meeting planner with 20+ years of event management experience, founder of ConferenceSource, expert in meeting facility sourcing & contracting in North America, Europe, South America and Asia. Kelly will manage your budget as if they were her own, negotiating the best possible rate and hotel contract to benefit and protect every client and exceed all expectations for all planning aspects for sales meetings, educational meetings, product launches, incentive trips down to a small board of directors meeting. We make meetings easy understanding your meeting objectives and delivering meeting matched components.

Need Help Planning Your Next Corporate Event or Meeting?

Maximizing Success: How to Approach Sponsors for an Event

Posted: June 1, 2023

Businesses can use events in many different ways. Many use them to educate and entertain their target customers, while others use them to advise, inform or answer set industry questions. However, the main focus of the event should be to maximize the event through multiple channels, and the main question should be whether the company must approach a sponsor.

There is an array of methods that companies can use how to approach sponsors for an event. The main question is whether sponsorship is needed and what the goal is for the collaboration. Sponsors can provide finances, venues, giveaway items, or support throughout an event. Companies, however, choose a sponsor that shares their goals, innovation, and customer relations.

The team must first identify the goals and reasons behind a sponsor before finding the ideal company to work with. There are, however, many different sponsorships, and each has its benefits. The key is to ensure that the sponsor aligns with the company values and goals to provide the best event for the attendees.

Why Do Companies Sponsor Events?

There are a few main reasons why companies sponsor events. The primary aim and apparent reason is to have their company and logo present at the event. Not only will the attendees identify and follow the logo, but they will also connect the company to specific industries.

Another reason a sponsor company can join an event is to increase its customer base and sales. Consumers will identify the need for the sponsor product and buy it, which increases the company’s sales. The business can grow its market and advertise to a broader untapped customer base.

Creating a positive reputation and conducting market research are two other examples of the reasoning behind sponsorship. Companies can advertise and display their good reputation by assisting other companies to grow and build their brand, which will portray a positive character of the business.

Lastly, sponsorships allow companies to build relationships. This is not solely true for businesses but for customers, clients, and other corporate entities. The team will have the opportunity to network and connect with other industry leaders, which will lead to collaboration at a later stage.

How Does Sponsorship Work

Sponsorship is when a company provides support to an event or non-profit organization. The support can come in multiple forms, such as financial, informational, product, or any other form. In exchange, The company will receive benefits such as product advertisement, company logo usage, or other benefits that both parties agree on.

Do You Need To Have A Sponsor For Your Event?

This question has no clear answer, and companies can host a successful event without sponsorship. The key focus, however, should not be whether the event will succeed without the event but rather what benefits there will be if the event has a primary sponsor connected to it.

Sponsors do add credibility to the event. When companies sign industry leaders as sponsors, many potential attendees will add credibility due to the sponsor. Major companies will not sponsor all events; thus, adding these names to the event will provide all the credentials to showcase its validity.

Four Types of Event Sponsorship

The most popular sponsorship among companies is financial sponsorship. In this instance, companies will provide financial support for events or conferences and receive benefits through mentions and company logos.

The second type of sponsorship comes in the form of in-kind support. In this example, companies will provide services or products instead of finances. The company will use its best products or services to ensure the event succeeds. Companies can sponsor venues, prizes, or food for all the attendees. All great examples of in-kind sponsors.

Another example of sponsorship is a media sponsor. The company will provide media footage or marketing support to ensure that the event reaches the target audience. The team will create videos on the day or take photos throughout the event to ensure the hosting company has the necessary media footage. ages.

Promotional partners are the last form of sponsorship. The company will promote, advertise and share the marketing and advertisement on their platforms to ensure that the event reaches a wider audience. Promotions will allow the possibility to grow in popularity, and more potential customers will be aware of the event.

Both parties are acquired to create a social media post of the event. The corporate sponsorship will benefit from this because there will be traction to their social media platform. The perk is that the event budget will not be raised, and the ideal sponsor will not have to spend money on creating and posting this promotional information.

Why Should Someone Sponsor Events?

There are multiple reasons for sponsoring an event, and companies can capture various benefits that will build their company through sponsorships. The main focus points, however, are brand awareness, credibility, and publicity.

For Brand Awareness

Many companies take advantage of the benefits of sponsorships with a focus on brand awareness. This will allow customers and clients to become familiar with the company brand, and they will identify the brand and understand the values, products, or services they provide.

The credibility of the Company or Brand

Credibility is built through sponsoring significant events or regularly sponsoring smaller events. Significant events will not allow any business to become a sponsor and collaborate with the event. Thus investing in a big event will provide the target customers with the evidence they need to add credibility to the company and brand.

Publicity

Publicity is known for drawing attention to a company or product. This is one of the benefits of being a sponsor. All the attendees and potential customers will witness the company at the event. Thus drawing them toward the business, website, or sale team, which can then be used to transfer them to customers. By simply being present many will identify the company, leading to more publicity and attention for the brand or company.

Check Out What Do Your Sponsors Actually Want:

How to Choose A The Right Sponsor for Your Event

Many variables and factors must be considered to ensure that the sponsor is the best choice for the event. Many think that any sponsor is great, but this is not true. Companies must evaluate and question the sponsor to ensure they fit the job best.

Know your Audience

The team must know the target audience and the expected attendee at the event. The sponsor must have some benefit for the attendee. If the company hosts women in business events, having a running sponsor will be no benefit. The hosting company must know what the audience wants and needs and provide a sponsor based on that.

Look For Brands that Align with your Fans

The use of sponsors is optional, and this is what most companies forget. The host must find sponsors that not only align with the company brand but also aligns with the attendees of the event. The core values of both parties must be aligned. If both parties believe in innovation and creation, the partnership benefits the event and the attendees. On the other hand, if a company believes in safety for the user, while the other company wants sales, they will not greatly benefit each other.

Sponsors Motivated by ROI

Every expense in the business must have some form of return. The return on investment refers to the quantity of finances, sales, or publicity a company will receive for providing the sponsor. Both parties must receive a great value in return for the time, energy, or money they have placed within the event.

Finding Sponsors For An Event

The strategy for finding a sponsor might differ between corporate companies. The idea behind the concept is to find the ideal company with the same goals and values to join the event through sponsorship.

How to Look For Local Sponsors

The first option is to find a local sponsor with the same event goals and intentions for the company’s customer base. A local sponsor refers to a company that exists and trades within the same city as the hosting company. However, The sponsor must provide the necessary sponsorship activation to ensure they can form part of the event.

Find Sponsors From Previous Events

The best method of identifying and using a corporate sponsor is to use a company that sponsored at previous events. The event hosts will know the company due to previous interactions and sponsorships, and this will save the company time searching for a sponsor and provide them with critical knowledge of what the sponsor brings.

The company can use sponsors that previously provided finances, products, or services. If the sponsor is well-known for site security and has the tools, knowledge, and tips for running onsite security, the company can reuse them for the current event.

Use Resources Online To Find Sponsors

With the current advances and progression of the online era, every individual and team can access online platforms. Some of these platforms are reviews and comment based. Companies can use these platforms to evaluate potential platforms by simply observing the reviews that customers comment on their social media pages and website.

Another method of capitalizing on online resources is to use social media platforms. Companies can search for a broad market and identify industry leaders that will be the best suited for the sponsorship. The company can contact them with a proposal to benefit both parties.

Get Help From Your Audience

The target audience is an excellent indication of what type and company will fit the sponsor role. Companies can ask the audience for ideas and company names they want to see and experience as sponsors for set events or conferences. This will allow the team to identify the top companies benefiting from the event. The team can identify smaller or unknown businesses with much to offer to the event and the attending audience.

How to Pitch a Sponsorship

Specific points are extremely important when a company pitches a sponsorship to another business. The first focus should be on a short briefing of the type of event that the company wants to host. The team must provide the potential sponsor with market research and number to prove to the sponsor that the event dramatically benefits both parties.

The team can then afterward layout the proposal for the sponsorship. The proposal should cover more than just signage and the benefits that the sponsor will receive. The company can add value and growth in the customer base that can grow from the event. The focus is to turn the sponsor into a long-term relationship, thus providing both parties with benefits in the long run.

Look at Events Similar to Yours

Events are all over the globe. The leaders in every industry take advantage of events. This can be of great benefit to the company. They can use these similar events to identify the type of sponsors they have acquired. This will provide them with clear examples of sponsors that will work for the event they want to host. The company can contact these hosting companies for guidance and support in identifying key event sponsors.

Creating a Winning Sponsorship Proposal for Your Next Event

A strong team will have the necessary skills to create and present a proposal that will convince any company to join the team as a sponsor. The event sponsorship proposal, however, must have clear and valuable points to ensure that the team understands the benefits and importance of the partnership between the two companies.

Enticing Sponsorship Package

Companies must present sponsors with an enticing package to ensure that the sponsorship is worth the time and money of the sponsor company. A package will provide the sponsor with a layout of the benefits that they will receive. A clear description and summary of the requirements will be included in the package that the sponsor receives.

Creating an enticing package will allow sponsors to observe the entire sponsorship package, and this will make the perception that the company that wants to acquire the sponsor is professional and can commit to collaboration between the two parties.

Creation of Value Proposition

A value proposition is a key part of a winning proposal for a sponsor. The value proposition will provide the sponsor with information on the company itself. The brand the company represents, the competitive advantage, and the company’s values, principles, and goals.

This will allow the benefactor to provide the patron with information that can be seen as valuable. The sponsor will be able to identify key points and determine whether the partnership will produce the results that they desire.

Case Studies

Case studies will be real scenarios the company has faced or overcame to produce a great event. This will allow the sponsor to identify their need within the event. Case studies will provide the company with valuable information on how the benefactor treats sponsors and how they deal with stressful situations.

Historical Data of Events

Historical data is a great tool that will allow the sponsor to identify the company’s positioning and potential that they can add to the upcoming events. The historical data can produce weak areas that the sponsor will fix. The past events had a lack of social media presence. Thus working with the sponsor will provide the event with social media presence and advertising material to ensure the target audience can identify the event.

Present Current Event Attendee Statistics

Statistics is one of the best methods to provide another company with information on past events. The team can provide the sponsor with attendee statistics to drive home the mere fact that they need a sponsor to entice more attendees. The sponsor will be able to determine whether the event is worth supporting with the number of individuals that attended the last few events,

Include Your Social Proof

Social proof can be paramount when companies aim to secure a sponsorship deal. Social proof is accepting and following attendees who joined and enjoyed past events. The company can obtain testimonies of past event attendees to provide feedback based on their experience. This will display the positive aspects of the event. The social proof provides the sponsor with attendee feedback based on past events, which will be used to justify the sponsorship.

Another tool to ensure persuasion of the sponsorship is to provide the sponsor with post-meeting feedback that the company obtained through the attendees of the last event. The company can identify fundamental problems and provide the sponsor with clear solutions to these problems.

Improve The Event Website

An event website will be the first encounter many companies or attendees will encounter, and companies must build a website that provides sponsors with an accurate representation of what the event will bring to the table.

Make Unique Opportunities

Unique sponsorship opportunities will draw industry leaders. Companies must find innovative and creative ways to provide both parties with new unique opportunities. This will ensure attendees connect these opportunities to the event company and the sponsor.

Ideas for Virtual and Hybrid Event Sponsorship

Virtual events can add some difficulty to corporate sponsors for advertising and displaying their logo, products, or services on the event day. This, however, can be overcome by using creative methods to ensure that the sponsor receives the benefits they signed up for.

The first method is to allow the sponsor to create an advertisement that can be played and displayed as a keynote speaker alternate. The sponsor can have a speaker ready to communicate during the intervals to provide the attendees with information on products or services of the company or create an advertisement that will be played throughout the breaks of the events.

Another idea that can be used to ensure that the sponsor receives advertising is to use their products or services throughout the event. If the team produces excellent products, all speakers can use these products throughout the event. The team can precisely identify and thank the prospective sponsor for ensuring all attendees know the sponsor and their services.

FAQs

How Do I Write A Letter To Get Sponsors For An Event?

A sponsor letter has specific points within the letter. The company must start with an introduction that explains the event’s reason. After the introduction, the company can state the main reason for acquiring a sponsor. After the team can identify and clarify the benefits for the sponsor, state what the sponsor must provide to obtain these benefits.

Why Do You Want Sponsorship?

The four main reasons for a sponsor can be to obtain the necessary finances to host and run a successful event. Another reason can be to get the expertise or services that the sponsor has. The company can acquire a sponsor to provide the event with products for giveaways or winning prizes at future event. And lastly, sponsorship can be requested to provide the event with media presence or advertisement.

Final Conclusion

Sponsorship is a great addition to an event. The problem, however, is to accumulate and add the potential sponsor to the event. Companies must work exceptionally hard by providing clear benefits, information, and social proof to ensure that the potential sponsor can identify the perks of joining the event.

There are a variety of ways that sponsors can join in the event. Financial, media, providing services or products, or being a promotional partner are all great examples of ways a company can become a sponsor. The key, however, is to establish the benefits for both parties. The event can receive more traction and attendees by simply using valuable sponsors.

Kelly Murphy

PRESIDENT & FOUNDER

Need Help Planning Your Next Corporate Event or Meeting?

Sunshine Act – Tips for Pharmaceutical Meeting Planners

Updated: May 18, 2023

Discussions about the impact of major pharmaceutical firms on both the public and private sectors of healthcare are prevalent. Historically, these corporations enticed healthcare experts through pharmaceutical meeting planning, frequently including exotic trips, lavish meals, and significant gifts.

This practice eventually raised concerns about how they influenced doctors’ prescribing habits and the treatments they recommended to their patients.

In 2010, The Physician Payments Sunshine Act (Sunshine Act) was passed as part of the Affordable Care Act (ACA). The act oversees the transparent reporting of endorsements between pharmaceutical companies and physicians. This enables consumers and patients to have access to the right prescribed medication.

The act provides a barrier to protect consumers against biased decision-making and ensures that the relationship between drug manufacturers, producers of medical devices, and biologicals and physicians remain democratized through transparent systems that monitor payments and items of value offered to physicians and teaching hospitals.

What is the Sunshine Act

As already mentioned, the Sunshine Act was introduced back in 2010 by ACA which oversees fair and equal healthcare access to all American citizens. As part of the act, all drug manufacturers are requested to submit an annual report to the Centers for Medicare & Medicaid Services (CMS).

Moreover, the Sunshine Act requires group purchasing organizations (GPOs) to also declare specific ownership interests that are held by their partnering physicians and any immediate family members that might be involved in ownership interest.

Reporting of Transfer of Value

Today, a general rule is that all involved parties such as manufacturers of drugs, biologicals, and other medical devices annually disclose the transfer of value to physicians and educational teaching hospitals.

This means that any transfer of value, which refers to goods and items received, will need to be entered into the Open Payments portal. Transfer of value items can include meals, lodgings, honorarium, gifts, speaker fees, travel allowances, and any specific investor interest individuals might have.

How Does the Sunshine Act Improve Transparency

Manufacturers, such as those mentioned above are required to submit an annual declaration clearly stating payment and transfers of value made to covered recipients.

Seeing as The Centers for Medicare & Medicaid Services (CMS) fulfills this law via the Open Payments Program and platform, it’s now possible for individuals to look up any registered physician in the United States.

Estimates suggest that in 2021, more than 12.1 million records were published and managed to track close to $11 billion in the transfer of value.

While on the surface it might seem like a tedious administrative burden, these efforts are helping to keep the healthcare sector transparent and provide access to ordinary citizens to view and report any possible disputes at any given time.

Pharmaceutical Meeting Planners

Pharmaceutical meetings and networking events are essential collaborations between manufacturers and pharmaceutical healthcare professionals. These events provide industry specialists, experts, and professionals to partner on new developments and sector-specific innovations.

In addition to their other benefits, these events serve as critical tools in pharmaceutical event management, building a climate suited to drawing new business on a large scale. This is an important component of the pharmaceutical industry’s growth strategy.

The variety of commercial options created includes pharmacies, teaching hospitals, private clinics, and cooperation with industry influencers.

Furthermore, as part of the conference strategy, companies often launch new pharmaceutical products or services during the meeting to increase their brand awareness. This is usually where companies promote their business ventures and hope to drive more community-level influence.

With big companies working to foster new lasting relationships in the hopes of securing marketplace influence and growing their dominance against competitors, the value of transfers often goes unnoticed or unreported. This is where the Sunshine Act is vital in ensuring a transparent system between both entities or the involved parties.

Check Out Sunshine Act Overview:

How the Reporting Process Work

As already noted, several expenses are reported and tracked via CMS. Any company that fails to declare its expenses or provides false information will be subject to a fine ranging from $10,000 to $1,000,000. Companies must provide as much information as possible and read the data into the system.

Types of expenses that are required to be submitted under the mandate of the Sunshine Act include:

Declaration of Payments

Typically payments don’t necessarily refer to physical “cash” but instead to payments or transfers of value such as food and drink, any gift, travel, accommodations, contributions to charity, and even entertainment. The Sunshine Act also oversees that all licensed professionals that engage in payment activities in international agreements must declare those payments after the meetings.

Regardless of where these meetings occur, regulations require manufacturers to focus on gathering the in-person data and establish a developing system that helps consumers better understand the reporting criteria for companies.

Data collection

Once a payment has been accepted or approved by the doctor or physician, drug manufacturers will then need to collect all relevant data and verify the accuracy thereof.

Once the data has been analyzed and categorized, only then can it be submitted into the CMS reporting system. Afterward, the data is then cross-checked for accuracy and published on the Open Payments System, which then only allows citizens to review the data table. Gathering the data makes it easy to create reporting systems and focus on delivering transparent services to individuals.

Change of Declarations

Manufacturers must track and report any payment, regardless of size or distribution method, during the meetings. Each year the threshold for declarations changes, which means that all annual payments will need to be reported.

Information Required

Finally, to ensure that all parties remain compliant with federal regulations outlined in the Sunshine Act, manufacturers must collect all the necessary data about payments and transfers of valuable information from all client meetings.

Further information such as personal and business contact details, manufacturing license numbers, and all relevant spending data such as the form of payment, date, and exchange is provided to CMS.

Tips for Pharmaceutical Meeting Planners

Keeping track of all this information is a tiresome procedure that requires a lot of physical working hours to analyze and compile. For pharmaceutical planners that engage with hundreds, if not thousands, of professionals at a networking event, keeping tabs on everyone quickly becomes daunting.

Service and product meetings now have a focused reporting system that ensures regulations are abided by, and data creation is easier for both private and public entities.

Instead, new and innovative technology enables the Sunshine act meeting planner to have more control over specific requirements and the information they have received throughout the event.

Here Are Some Tips for Meeting Planners:

Use Software Programs

Instead of having professionals complete forms the traditional way, consider using software specifically designed for these sorts of meetings and events. The software will enable meeting planners to better control and track the value of transfers.

Establish a List of Existing Physicians

With the aid of technology, meeting planners can establish a database of existing physicians they have worked with and engaged with. This will ensure that in the event of recurring payments, or possible changes, planners can seamlessly access the information they require. Even after meetings have been finalized data can still be updated accordingly.

Update the Database

Having a database of existing physicians and doctors is one thing, but not keeping it up to date can make it harder for companies to declare their information to the CMS system. Be sure to conduct regular updates at intervals, ensuring that all captured information is accurate and can be reviewed in case of a dispute.

Prepare Materials Beforehand

Before any pharmaceutical event, prepare any materials required for any meetings. This gives a person enough time to review the mandated information required by CMS and Open Payments. Additionally, it ensures that companies remain current about any possible declaration changes that might have occurred since the last submission.

Use Apps When Possible

As mentioned, software and technology have enabled meeting planners to have seamless access to information and data whenever required. Moreso, some apps exist purely to make the job of meeting planners a lot easier in capturing important information or transfers of value.

These apps were designed to make the process easier for doctors to accept or decline transfers of value during meetings. Digital signatures are captured and uploaded to an overall transfer of value report, which is then later submitted to the Open Payments System.

FAQs

Who Does the Sunshine Law Apply To?

The Sunshine Law is part of the Affordable Care Act (ACA) and applies to all manufacturers of pharmaceuticals, medical devices, and biologicals that are active participants in the U.S. federal health care system.

Is the Sunshine Act real?

The Sunshine Act was introduced to the Senate in 2007 by Senator Charles Grassley (R-Iowa) and Senator Herb Kohl (D-Wisconsin). In 2010 it was enacted along with the Patient Protection and Affordable Healthcare Act. Then on 30 September 2014, the Open Payment Program portal was launched with the first available data provided by the Centers for Medicare and Medicaid Services.

What Are Sunshine Requirements?

The Sunshine Act requires that all meetings of boards and commissions be made open to the public; a reasonable time notice of meetings must be given; information and minutes of the meetings must be captured.

What is a Sunshine Act meeting?

Any meeting conducted by an agency that is open to public observation, and is mandated to the collegial bodies of upper federal government agencies.

Final Thoughts

The efforts of The Sunshine Act ensure that citizens have the right and access to view any payments received by healthcare professionals such as doctors and physicians by manufacturers of drugs, medical devices, and biologicals.

This enables a transparent system that helps to democratize the federal government healthcare system to ensure fair and equal distribution of prescription medication is provided to civilians.

While the system exists within the realm of the public, pharmaceutical meeting planners are required to keep track of all transfers of value at conference or meetings. This requires them to utilize software-based programming that helps them to capture necessary information that can later be amended and submitted to the Open Payments System.

Kelly Murphy

PRESIDENT & FOUNDER

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