The 2017 Incentive Buyers Conference took a look at a
research study of how much attention the best performing companies pay to their
incentive, recognition and reward programs.
The research - "Things Top Performing 10 Businesses Do Differently in Recognition and Reward Programs" - showed quite clearly that the most successful firms view incentive programs as a strategic business advantage over average firms.
The IRF set out to look at what top performing companies do differently when it comes to their sales, channel, and employee reward and recognition programs. Instead of using a pre-set list like the Fortune 500, the IRF surveyed 400 companies and found 177 that met its definition of top performers: at least 5 percent annual growth in either revenue or stock price as well as 90 percent customer and employee satisfaction scores.
What the study found is that when it comes to non-cash reward and recognition programs, top performing companies do a lot of things differently, starting with how likely they are to use these incentive programs, and how important they feel those programs are to their success. Compared to average firms, top performing companies:
·
Use non-cash rewards and recognition in 90
percent of their sales programs compared to 75 percent of average firms
·
81 percent vs. 59 percent in channel sales
·
88 percent vs. 77 percent in employee loyalty
and engagement programs
Highly successful companies are far more likely to have
all of their programs organized under a single umbrella than average performers
-- 350 percent more likely when it comes to sales incentives and 250 percent
more for employee recognition programs. In addition they are substantially less
likely to use service anniversary programs, with only 39 percent celebrating
years of service, compared to 51 percent of average performing firms.
Another strategic difference is that the best companies are twice as likely to design their reward and recognition programs to have the broadest reach possible, with over half aiming to include as many employees as possible, not just the top performers. That's a tactic used by less than a third of average performing firms.
Another strategic difference is that the best companies are twice as likely to design their reward and recognition programs to have the broadest reach possible, with over half aiming to include as many employees as possible, not just the top performers. That's a tactic used by less than a third of average performing firms.
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