Effective Motivating and Rewarding to Accelerate Success

May 18, 2011

These days everyone is looking for the perfect solution to ramp-up sales. The compensation package, including sales incentives, is an important key to your salespeople’s success. 

A well-designed incentive program that is implemented effectively helps an organization attract and retain the best salespeople.  It also energizes and motivates salespeople to engage in activities and behaviors that will drive high levels of desired results.  An effective incentive plan can also be a considerable source of enthusiasm and inspiration! 

There are so many reasons why is makes sense to incorporate sales incentives into a salesperson’s total compensation package:

  1. Salespeople Drive the Company’s Top Line – A highly motivated salesperson will create more sales than a less motivated one. 
  2. The Output of Salespeople is Measurable – It’s easy to track, report, and reward salespeople’s metrics. 
  3. Acknowledges a Salesperson’s Success – The rewards generated from an incentive program serves as a constant reminder of their success.

Rewarding your sales staff on “activities” is an effective way to encourage and develop specific desired sales behaviors. According to a marketing research firm, it is crucial to establish a link between rewards and performance – which will provide a clear and fair relationship between expectations, achievements, rewards, and your corporate strategy.

Expectations:
Your employees must be aware of the expectations within their job. Your rewards program could be off to a bad start if the expectations are not clear.

Sales Goals:
For goals and achievements to have the greatest motivational impact, they must be measurable and visible.  The earning rules for the sales incentive program must be clearly designed and communicated.

Rewards:
Other than using a points-based system, maximize effectiveness with possible rewards such opportunities for growth and a work/life balance. 

Corporate Strategy:
Make sure you are including your organizational strategy within the rules of the program.  For example, if your company is redefining its sales process to better meet the needs of the multi-national customers, your sales incentive should reflect this initiative.

When trying to increase sales, retention, and engagement, an effectively planned and executed sales incentive can help you achieve your goals.  Is your organization including sales incentives in their total rewards package?

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Survey Finds American Workers Unhappy . . .

May 6, 2011

Many American workers feel undervalued, unhappy, and dissatisfied with their current job situation, according to a survey by the American Psychological Association (APA). This survey was conducted with Harris Interactive earlier this year. 

Less than half of employees (43 percent) who responded to the survey said they receive adequate non-monetary rewards and recognition for their contributions at work; only 57 percent reported being satisfied with their employer’s work-life practices. Just 52 percent of employees said they feel valued on the job, only two thirds reported being motivated to do their best at work, and almost a third (32 percent) indicated that they intend to seek employment elsewhere within the next year.

Although times have been tough for many organizations everywhere, APA has recognized those employers who have stepped up to the plate and understand the link between employee well-being and organizational performance.  These employers reported an average turnover rate of just 11 percent in 2010 – significantly less than the national average of 38 percent as estimated by the U.S. Department of Labor. Additionally, only 6 percent said they intend to seek employment elsewhere within the next year, compared to 32 percent nationally.

This is the perfect time to create a culture of recognition within your organization! Creating a culture of recognition with your workforce is good for employees and great for business.  Recognition leads to happy, motivated, and engaged employees. Make it a daily goal to recognize someone in your organization.  Did you recognize someone today?

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What is the “Right” number of Sales Incentives?

April 11, 2011

Throughout the sales incentive and performance improvement industry, no compelling data exists regarding implementing the “right” number of incentives in any industry.  It appears that companies often don’t know how many incentives are running at any given time since the use of incentives is not always centrally administered, nor do multiple-location organizations account for programs in a way that a representative from the company can gather accurate data.

Having too many sales incentives can be equivalent to not running any at all.  The purpose of an “add on” incentive is to create focus on a particular new product, solution or skill.  If you have three or more programs running simultaneously, no one can remember how to play, when you can play, or the key metrics. 

According to research completed by The International Society for Performance Improvement, when tangible incentives are carefully selected, implemented, and monitored, they increase work performance an average of 22%.  This study identifies the criteria for successful incentive design. The key is to outline the steps needed for success, then reward along the way for good and excellent execution of the desired steps.

Many companies get “addicted” to sales contests; a study from The Complete Guide to Sales Force Incentive Compensation.  A large computer manufacturer’s sales force was known for running many sales contests – executives within the organization referred to this as “incentive plan obesity” or the tendency to overload the incentive plan by “throwing money at every problem.”  An ex-director in compensation at this organization confessed, “Our organization gave bonuses and awards for every imaginable action by the sales force.  The more complex it got, the more difficult it was to administer, and the results were not convincing.”

If an incentive is poorly designed or poorly communicated, even one incentive is TOO many. Remember, incentives are about doing something NOW. They are “in the moment and they call people to action”.  If you continue to add incentives on top of other incentives, it is hard for sales people to stay focused on what it is important.  How many sales incentives in your organization running and are they working for you?

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Recognition and Change Management

March 21, 2011

We are often faced with change in the workforce.  Some people deal with change well while others don’t. Change within an organization can come in all shapes and sizes – new management, acquisition, shift schedule, new team member, etc.  Even the smallest changes can cause a major ripple in your employees’ work life.

Effective change implementation means careful planning, communication, and facilitation.  During change, managers need to involve their workforce, not just impose it.  Change can be seen as “threatening” and can be disruptive to your organization’s ability to run efficiently. Change managed well will ensure your workforce is engaged and able to adapt.

Here are some ideas for instituting change: 

  1. Communication, Communication, Communication! – It is important to keep communication lines open during change. According to Right Management , organizations that effectively plan for and communicate change, while allowing their people to become actively involved in the change process, are taking positive action to ensure their workforce is adequately prepared and positioned to perform at higher levels.
  2. Train your Team – Senior management’s most important task during the change is to train middle management.  Middle management may have the most difficult position: they must facilitate change AND help their employees understand the reasons for the change. They must also be equipped with the knowledge and skills needed to help their employees. Training is the cornerstone for building knowledge about the change and required skills. Here’s an idea: Recognize and reward those who know the new knowledge!
  3. Positive Consequences – When dealing with change, the most effective way to deal with the change amongst your peers and employees is creating a culture of recognition. According to a survey conducted by Right Management (link), organizations that do not manage change well are four times more likely to lose talent. Early success and long-term wins during change must be recognized and celebrated – for recognition to be most effective, it needs to be personal, immediate, sincere, and specific.

During any type of change in your organization, remember to communicate, train your troops, and recognize those exhibiting the new behaviors.  Recognition is a necessary component of change management in order to cement and reinforce the change in your organization. As a result, your workforce will be engaged, motivated, and happy!

The great news is change doesn’t have to be seen as a negative – if your organization will be undergoing a change, do you have your plan in place?  Remember to recognize individual throughout your change implementation.

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Gift Cards: Are they really an Award?

February 28, 2011

Many of my clients say their employees would like to see gift cards in their reward selection. But are gift cards truly rewarding?  Countless studies regarding cash and non-cash rewards show non-cash rewards get the greatest results. Gift cards are considered equivalent to cash because of the face value and are much less effective than rewarding with tangible, merchandise-based awards.

Many organizations look at gift cards as the ultimate flexible reward – a participant can choose what they want from a local retailer.  But if you look closer at what this person is using their gift card for, it might surprise you.  Many of those who select gift cards are using them for household items such as groceries, diapers, etc.  Are these “disposable” items really a memorable award?

A tangible expression of thanks can be an excellent way to encourage increased performance, promote company values, and boost retention. Here is some data that supports why tangible rewards are more powerful: 

  • Tangible Rewards are Visible – Tangible rewards have trophy value; share your success with co-workers, friends, etc. 
  • Gift Cards are Spent on Necessity – Participants who receive a gift card typically use it for everyday items and rarely on a special purchase, event, or experience.
  • Don’t Remember? – After 30 days of receiving a cash reward or gift cards, a participant will not recall what it was used for.
  • Increased Loyalty – Tangible rewards reinforce association with the sponsor company and increase loyalty. 

A study conducted by the Incentive Research Foundation shows that tangible incentives increase work performance by an average of 22%.  When looking at cash or gift card-based programs, tangible award programs outperform those by an average ratio of 3:1.

When is comes to actual rewards, respondents to an Incentive Federation survey indicated merchandise and travel incentives are more compelling than cash. Merchandise transcends its roll as a reward and becomes a trophy to be “displayed.”  How this item was earned is shared with co-workers, family members, and friends.  You definitely earned your bragging rights!

Take a look at your organization’s reward mix.  Are you using the “right” rewards? And of course, remember to recognize those who go above and beyond!

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Posted by Recognize Right

Recognize Those Who “KNOW” It!

February 11, 2011

This week, I attended the 2011 Training Conference and Expo in San Diego, CA.  I hosted a seminar regarding the importance of using recognition with your training initiatives. 

During this seminar, I discussed the results in a case study highlighting our client’s success using recognition to ramp-up their training efforts.  Here are a few highlights from the case study: 

  • Situation – Large organization was experiencing insufficient and ineffective training.
  • Objectives – Management wanted to improve sales skills and solution-selling, increase sales, and increase multiple product selling.
  • Solution – Reps were awarded for taking and passing online quizzes about new products, selling techniques, and typical objections.  Team Leaders were also rewarded if 75% of their team participated and passed the quiz.
  • Results – The results were astonishing!  Sales increased in excess of 20%, Rep retention also increased, and the program ROI was over 240%!!

The Corporate Executive Board (CEB) recently released the results of a survey of 50,000 employees from more than 50 companies across multiple industries stating almost 2/3 of all employees are only 33% as productive as they can be because they don’t understand what they are asked to do, nor have the knowledge to do it.  

How can companies gain a competitive advantage when many of the employees don’t have a clear vision and knowledge of the corporate goals? CEB has identified that companies need to align their employees with their corporate strategies. A great way to share and educate strategies/goals to associates is through a knowledge-validation system and training, with recognition. If they know it, reward them!

Many progressive companies that are tying recognition to their training efforts are realizing these benefits: 

  • Boosts Confidence and Improves Performance – Give your employees the knowledge, and confidence will grow!
  • Engagement Increases – Employees will become more engaged because they have the knowledge.
  • Builds Loyalty – Those who gain knowledge about their role, products, and company are most likely to be long-term, dedicated employees.
  • Speed to Market – Employees will learn quickly and are more apt to learn the knowledge NOW!
  • Provides Coaching Opportunities – Managers can easily see who will benefit from additional training.
  • Builds Best Practices – Employees who learn best practices will put them to use – particularly if they are rewarded for doing so.  

Take a look at your organization’s training efforts.  Are you spending thousands of dollars on training initiatives without desired outcomes?  Recognize those who validate the knowledge!

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Reward Employees on a Budget

January 31, 2011

Everyone enjoys a pat on the back for a job well done.  Especially if it includes some type of reward! However, many businesses today face the dilemma of wanting to recognize employees but have a very limited budget to do so.  Engaging and rewarding employees doesn’t have to break the bank! 

A list of creative and easy-to-implement ideas was created by a variety of professionals in a range of industries.  They were asked “What are your best practices to recognize others without breaking the bank?” If your corporate goal for 2011 is to incorporate a culture of recognition and to run lean and mean, here are a couple ideas to get things started in the right direction: 

  1. Flex those Hours – Give deserving employees the ability to flex their hours.  This can range from allowing an employee to telecommute one day a week to the flexibility to start earlier and leave earlier in exchange for high performance. This perk offers the most gain with the least pain. 
  2. Handwritten Note – Hand out personal, heart-thought notes from the top-dog to the top-performers.  It is amazing the lasting power of this low-cost idea!
  3. Help them Connect – Introduce a star employee to someone in senior management or a key supplier.  This low-cost idea will make their day or even their career.
  4. Award a Free Pass – Reward an employee with a pass for a day off.  Everyone can use a day off!
  5. Make it Fun! – This is by far the most important – make it fun and your employees will play, which in turn will boast morale, increase production, and make your organization a fun place that people want to be.

A study conducted by Accountemps found that frequent recognition was named as the number one requested non-monetary compensation by full and part-time employees, with regular comp coming in at No. 2. It is so important to reward someone for a job well done. Recognition creates a positive environment that fosters improved performance. It is the fuel that inspires and energizes others to work smarter and harder, supports behavior change, catapults training initiatives, and increases productivity.

The great news is, you don’t need to break the bank and your bottom line will flourish. Today, I challenge you to recognize someone – make it fun and memorable!

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Don’t Lose Your Top Performers

January 10, 2011

Don’t let your top performers jump ship this year.  As a result of the recent recession, more and more employees are thinking about looking for a new gig.  Actually, according to a recent survey by Right Management, a division of Manpower, 84% of U.S. employees plan on looking for a new job in 2011. Only 5% stated they intend to remain in their current position, while 11% were not sure about their decision. 

The survey included over 1400 employees in North America.  Most are feeling increasingly restless and will be leaving in droves if the opportunity is favorable. Many employees sat tight through the recession without considering a job change because so few jobs were available.  But years of increased work without an increase in compensation, has many looking for greener pastures. 

Douglas Matthews, president and chief operating officer for Right Management, called the results a wake-up call to management. “This finding is more about employee dissatisfaction and discontent than projected turnover,” he said.

What can you do to keep your top performers on your team?  One of the top reasons people stay where they’re at is because of recognition.  This is the perfect time to create a culture of recognition! Statistics show companies who recognize their people outperform companies that don’t by 30 to 40 percent. Recognition leads to happy, motivated, and engaged employees, and that adds to the bottom line – both in employee retention and net revenue.

This year, make it a daily goal to recognize someone in your organization.  Did you recognize someone today?  Let me know how you’re recognizing your employees.

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Recognition Stimulates Innovation

December 30, 2010

I recently ran across an interesting study by a leading human resources consulting firm. The data gathered from the study stated that innovation will flourish within an organization when employees and associates are recognized for their ideas. This is especially true when they are encouraged and motivated by management.

Companies need to realize that innovative ideas and thinking can come from all levels of a company, not just research and development. Add some recognition, and the ideas will multiply! You might ask yourself, how can I get innovative ideas flourishing within my organization? Here are a few, simple ideas.

1. Recognize all those who submit innovative ideas with “instant” thanks. To encourage submissions, make all aware “no ideas are bad ideas.”

2. Share best practices with all levels of your organization.

3. If an innovative submission results in a new product or service, recognize that individual with a larger reward and have a fun event.

4. Don’t make things too complicated.

Those companies that do give positive feedback to new ideas and innovation will distinguish themselves from competitors. For example, a large energy company received over 7,500 innovation ideas from their recognition-based innovation program. The company implemented more than two-thirds of the ideas for a $17 million savings to the organization. The program was designed on a tiered reward platform with increasing reward values:

1. Tier One – Idea submitted

2. Tier Two – Idea accepted

3. Tier Three – Idea implemented

Has your organization implemented a culture of innovation? I would love to hear your ideas!

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Thank others this Thanksgiving

November 22, 2010

In the spirit of Thanksgiving, I would like to take this time to discuss the importance of saying “thank you” to your employees. Tell your colleagues, coworkers, and employees how much you value them and their contributions. It is a great time of year to recognize and thank each of your staff members for the things they do well.

One of the most important jobs of a leader is a simple one – say “thank you” and recognize others for their hard work. When you recognize people, you reinforce desired actions and behaviors. An effective employee recognition system is simple, immediate, and powerful!

Saying “thank you” and appreciation really goes a long way and can leave a lasting impression. Research has shown that employees respond positively when they’re recognized by their managers for a job well done. While they appreciate pay raises, year-end bonuses and surprise birthday cakes, it’s recognition that propels employees to perform at increasingly higher levels.

A recent Gallup study revealed that an increase in recognition and praise in an organization can lead to lower turnover, higher customer loyalty and satisfaction scores, and increases in overall productivity. Eighty-two percent of employees responded that the recognition or praise they receive at work motivates them to improve their performance.

Thank your team for their hard work and contributions to your organization. Showing appreciation will play a critical role in making your employees feel that you value them, take their well-being seriously, and strive to create opportunities for their career growth.

Have you thanked someone lately? Today, I challenge you to thank those who have gone above and beyond! I would love to hear your ideas!

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Posted by Recognize Right

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