At some point in your career, you probably had the opportunity to participate in a sales incentive program or two. The program was communicated company wide, with reminders and information posted everywhere. Rules were clearly written and your manager was fully informed. Did it really go that well? Chances are, probably not. Not all incentive programs are created equal.
Many organizations design and deploy sales incentive programs with the best intentions – to increase engagement and improve performance. Years of research and data demonstrate how successful sales incentive programs can be without costing the employer too much money. But of course, things don’t always go as planned.
University of Washington researchers along with a co-author from Harvard University, Lamar Pierce, recently took a closer look at programs that went wrong. In particular, they studied and researched a program launched by an industrial laundry organization to assist with their constant tardiness issue. The rules were simple – the mangers had a monthly drawing for a gift card for those with a perfect attendance record.
The program did the opposite of what the organization desired – it resulted in a decrease in productivity from the most productive employees. Many employees saw this program as unfair as non-productive employers were being awarded. Some managers believe throwing any type of reward at their employees will cause a behavior change. You need to make sure the reward is truly rewarding and you are rewarding the right behavior.
According to Pierce, rewarding those employees who always exhibited those key behaviors, would have resulted in a better return. Then, the behavior will be learned and replicated throughout the workforce. A poorly designed program can cost an organization more than you think.
Designing high impact rewards and recognition programs is a science and an art. Using a professional rewards and recognition provider to assist with designing, deploying, and tracking your program can produce the results you desire and more. In fact, Anderson Performance Improvement guarantees at 200% ROI. They are experts and fully understand the science behind creating a successful program. Is your incentive program producing less than desired results? Is it time to find a new partner? If so, contact me and I would be happy to help!
Posted by wendlynm 