HOW TO RUN A SUCCESSFUL BUSINESS INCENTIVE PROGRAM

Ranked #1 in the Industry

 The company's president wanted to run through the office shouting the news: sales for the first half of the year exceeded projections and expectations!

When he reflected on how the company arrived at this point, he had little doubt that instituting incentive programs companywide had been one of his best moves. From sales staff recognition to safety incentive programs to the recognition program, each one supported the organization's core values.

Employees fully understood how their performance affected their co-workers and the company overall. This organization was proof that if you motivated and rewarded workers, you could positively impact the bottom line.

The news was cause for a celebration. The company president wanted the entire staff to feel great about what they had achieved together.

One of the most critical questions facing companies today is: How do you improve employee morale and productivity while still reining in costs?

Slashing incentive programs is not the answer. In fact, when designed properly, a corporate incentive program can be one of the most powerful business tools available to companies today. According to the experts, the return on investment from a properly run incentive programs can be four-to-five times that of other capital expenditures.

Consider the possibilities. A sales incentive can boost incremental sales as well as market share. Need some help launching a product or jump-starting a slow mover? Time and again incentive promotions have proven their value to sales and marketing efforts.

Reward and recognition programs are just as effective with non-sales employees. From reducing absenteeism to improving safety to enhancing employee commitment and morale, incentive management does the job. It helps keep workers engaged and motivated despite the distractions of everyday life.

Numerous studies have shown that if a company wants high customer satisfaction and retention ratings, it needs these highly motivated employees who stick around. Furthermore, low turnover means lower costs associated with finding and training new people.

One of the biggest mistakes an organization can make is to assume that, in a down economy, their top people aren't being recruited by the competition. When the economy is up, talent is critical. When the economy is down, talent remains critical.

U.S. companies spend approximately $30 billion a year on incentive award programs, according to a study from the Incentive Federation. That's a strong testament that incentive systems must be doing something right.

Whether you're an experienced user of the performance incentive or new to the concept, this comprehensive how-to e-booklet outlines proven principles and methods for running an effective employee recognition program.


CREATE AN INCENTIVE GAME PLAN

An incentive must support specific business goals or it is meaningless. From the beginning, it's important to establish what the performance incentive program is designed to achieve and how those objectives tie in with the company's overall strategy.

To design effective objectives for both new and existing programs, arrange a brainstorming session with colleagues who will be involved. If possible, also include a few employees who will be participating in the final business incentive group.
This mix of people will provide valuable insight into changing market conditions or special characteristics of your customers.

Make a list of the company's most pressing needs or issues, both sales and non-sales related. Some of these topics will pop up every year, others will be new. As your team works, keep the following questions in mind: