X

Would you like to customize your experience?

We will only send you the content you are most interested in.

I'm interested in:

Not now, thanks.

Stay Up-to-date with Xceleration

Improve the results of your sales incentive programs

When designing sales incentive programs, many companies take the time to survey their employees about potential rewards. However, this could lead to a disconnect between what workers say they want and what will actually motivate them.

When designing sales incentive programs, many companies take the time to survey their employees about potential rewards. However, this could lead to a disconnect between what workers say they want and what will actually motivate them.

World Incentives Vice President Wayne Hodges notes that in surveys, staff members often state that they prefer cash rewards, but industry studies have shown that this is a poor motivational tool. Cash is quickly forgotten once it goes into an employee's bank account. After earning repeated rewards, employees often begin to think of this cash as part of their earnings, which requires firms to continually increase the amount of funding dedicated to employee reward programs.

InsideView suggests that organizations use non-cash rewards for incentive programs. One particularly effective reward is vacations to exotic locales, as the source states that these are trips that employees want to take but often can't afford. Helping top performers achieve a relaxing and memorable life goal can motivate employees to work harder to accomplish objectives. In addition, workers will return from their trips less stressed, which could further boost productivity.

Keep efforts targeted and personal
Not all rewards need to be large and expensive. Small, personalized items can be just as effective at motivating personnel if used regularly. Managers should be encouraged to recognize employees that work hard and are influential in helping their departments reach quarterly goals. Staff members should always know that their efforts are noticed and appreciated.

Ongoing recognition programs can help companies target incentives to where they will do the most good. InsideView's blog states that focusing efforts on middle tier workers can lift the performance of an entire department. Most workers will fall into this middle tier, meaning that everyone will feel that they have an equal chance to earn recognition and a meaningful reward. This is essential to generating high levels of participation that can drive results. When staff members feel they have little chance at earning a reward, they often stop trying as hard to achieve goals.

Employees in the middle tier are often hard workers who need a little extra support to get them to the next level. By targeting incentive programs, companies can focus their efforts in areas where they can reach the most individuals and deliver the best results. Collecting regular feedback about initiatives will help organizations see continual improvement, but they should be careful about how they interpret the results. 

What are you waiting for?
Subscribe to get the latest from our blog!