Want to Know How Incentive Programs Make Companies Perform Better?
July 3, 2019SHARE:
In a recently released study, the Incentive Research Federation has focused exclusively on the technology sector: What is it that high-performing tech companies do differently than average-performing tech companies when it comes to rewarding and recognizing their employees?
After looking at revenue growth, stock price gains, customer satisfaction, employee satisfaction, and other metrics, the IRF sorted the 118 survey respondents into 69 average-performing firms and 49 high-performing firms based on their responses regarding how their incentive programs were developed. The in-depth survey looks at reward programs overall, including sales incentives and channel/dealer incentives.
Overall, the high-performing companies surveyed demonstrate a greater respect for the value of reward and recognition programs than average-performing companies. They are twice as likely to believe these programs give them a competitive advantage (86 percent versus 44 percent) and are 15 percent more likely to say that such programs are a critical tool to manage performance.
For sales incentives specifically, high-performing tech firms are:
- 13 percent more likely to have a variable number of winners, rather than a fixed number
- 20 percent more likely to have a top-performer sales award
- 23 percent more likely to include a group trip for top performers
- 20 percent more likely to have tiered reward programs
- 21 percent more likely to use financial metrics as program qualifiers
In fact, IRF also has a similar study focusing on financial-services companies.
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