Run it yourself or outsource it? Choosing how to run your reward program

Every reward program needs someone to run it. Claims have to be checked, rewards paid, participants answered and reports written. For a small staff recognition program that might take a few hours a month. For a cashback campaign with thousands of claims, it can be a full time job.

So one of the first decisions is who does that work: your own team, or an outside team that runs the program for you. This guide sets out what running a program involves, the case for each option and the questions to ask before you choose.

What running a program actually involves

Running a reward program is more than switching on software. The day-to-day work usually includes:

Setting up and changing the program: rules, rewards, targets, campaigns and content.
Checking claims: matching each claim against the rules and the evidence, and handling duplicates and queries.
Approving and paying rewards: releasing points, ordering gift cards and making bank payouts.
Helping participants: answering questions about eligibility, claims, rewards and sign in.
Communicating: sending launch emails, reminders and updates.
Reporting: telling the business what was claimed, paid and achieved.
Managing the budget: tracking spend against what was planned.

The load varies a great deal by program type. A peer recognition program mostly runs itself once it is set up. A claims or cashback program needs steady attention, because every claim needs a decision.

The case for running it yourself

Running the program in house works well when:

You have someone with time to own it. A program without an owner fades quickly.
The program is closely tied to your culture, such as staff recognition, where your HR team knows the people and the context.
Volumes are manageable, so checking claims and answering questions fits around other work.
You want full, hands-on control over every decision, every day.

The trade-off is time. Program admin tends to grow, and it lands on people who already have a full job. If claims start to queue or questions go unanswered, participants lose trust.

The case for outsourcing the day-to-day work

Having an outside team run the program works well when:

Volumes are high, such as a cashback campaign or a national dealer program with many claims.
Participants are outside your business, such as dealers, installers or customers, who need answers but are not your staff.
Your team is small or already stretched, and the program would otherwise become a side job.
You need consistent checks, with the same rules applied to every claim, and a record of each decision.
You run campaigns in bursts, where hiring or rostering staff for a few busy months is hard.

The trade-off is distance. You still set the rules and the budget, but someone else makes many of the daily decisions. That works when you trust the process and get regular, clear reports.

Our older post on effective outsourcing covers the general principles, and most of them apply to reward programs.

What should stay with you either way

Even if the program is run for you, some decisions should stay with your business:

The goals and the budget.
The rules: who can take part, what they earn and what proof is needed.
The rewards on offer.
Changes to the program, such as new campaigns or bonus periods.
Exceptions, such as unusual claims above a set value.

A good arrangement is clear about which decisions are yours and which are delegated.

Questions to ask before you choose

Work through these with the people who would run the program:

How many claims, approvals or queries do we expect each month?
Who in our team would own the program, and how much time do they have?
Who are the participants, and where do they go when they have a question?
How quickly do claims need to be reviewed to keep participants engaged?
What does finance need to see, and how often?
What happens when the owner is on leave or leaves the business?

If the honest answers point to a lot of work and not much time, outsourcing the day-to-day work is usually the safer choice.

Questions to ask an outside team

If you decide to outsource, ask any provider:

What exactly do you do, and what stays with us?
How do you check claims, and how are duplicates handled?
How do you help participants, and through which channels?
What reports do we get, and how often?
Can we see every claim and decision ourselves?
Can we take the program back in house later without starting again?

The last question matters more than it seems. Needs change. A program that starts outsourced may later suit your own team, and the other way round. Choose a setup that lets you switch.

Comparing platforms as well as who runs them? See how RewardCo compares with other reward platforms.

A middle path

The choice is not always all or nothing. Some businesses run staff recognition themselves and outsource a cashback campaign. Others run the program themselves but bring in help for a launch or a busy season. Start with the option that matches your volumes and your team today, and review it after the first few months.

Putting it together

Run the program yourself when you have an owner with time, manageable volumes and a program closely tied to your people. Outsource the day-to-day work when volumes are high, participants are outside your business or your team is stretched. Either way, keep the goals, rules and budget with you, and make sure you can switch later.

With RewardCo you can do either: run your program yourself, or have RewardCo run it, checking claims, paying out rewards, helping participants and sending you a monthly report. You can switch between the two later. See how it works, from setup to launch.

Not sure which suits your program? Book a demo.