Incentive Research Federation Study on Incentives in the Tech Industry

A recent study conducted by the Incentive Research Foundation found that the top performing technology firms are twice as likely to use employee reward and recognition programs as a competitive advantage over competition.  Top performing firms were classified as those that demonstrated more than a 5 percent increase in revenue or stock price in 2018. Of the 118 technology companies reviewed, only 49 organizations made the cut. 

Other findings of how these companies use reward and recognition compared to average performers include: 

·       22 percent are more likely to structure their programs with the goal of reaching each participant versus only recognizing the top performing participants.

·       25 percent are more likely to look to outside partners for expertise on the best ways to recognize and incentivize their program participants.

·       They spend an average of $6,833 per person for their sales incentive trips, while average firms shell out an average of $6,000 per participant.

·       21 percent are more likely than those at average performing firms to use financial metrics as program qualifiers.

·       They spend about 6.7 percent of participant income in annual spend for rewards and recognition.

·       They award a value of $4,292 on average to their top performers and $2,685 to their average performers in award points, merchandise and gift cards.

·       20 percent are more likely to offer a top performer sales award, with 23 percent of them having that award include a group trip.

·       13 percent award a variable versus fixed number of winners.

·       14 percent have their awardees earn automatically on predefined goals versus committee selection intervention.

·       9 percent are more likely to include achieving 100 percent of the predefined goal to qualify for a trip versus requiring their sales people to exceed their goal. 

·       19 percent are more likely to provide simple rules for their program. 

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