Companies with defined incentive, reward and recognition programs enjoy a higher market share, lower turnover rates, a more highly engaged workforce, higher productivity and a host of additional benefits, so it makes sense that an increasing number of companies are turning to these programs. But very few company leaders know which reward vehicles work best, understand the legal tax and regulatory issues involved, or employ staff with relevant experience to properly design programs. Yet, despite this, many still attempt to do so using in-house resources.
Professional program designers tap into custom designed solutions and information, including industry research that shares best practices, program results by type and industry, the most effective program structures and reward options that work best in each type of program, and much more.
Attention is Paid to What is Measured
Companies that do have established employee reward and recognition programs often maintain them simply because they are part of the corporate culture – not because they are measured and proven to be effective. To prove effectiveness and return on investment, there must be analysis and measurement.
Historically, almost half of corporate program administrators did not measure results at all. In 2019, however, the Incentive Research Foundation (IRF) found that there has been an increase in reporting and analysis among corporations:
- 27% of corporate program administrators do not do any program analysis or reporting (major room for improvement!)
- Those who do measure program results say that it’s rare that they are asked to review the data with management (room for improvement)
- 40% of corporate program administrators look at participation reports. (still more room for improvement!)
Two measurement tactics are typically used by top performing companies to determine the success of their programs and which they choose is based on the type of program.
- Broader organizational programs designed to improve morale, reinforce strong company culture, or build an environment of teamwork often have no specific measurement goals associated with the program. Program administrators may use company-wide engagement surveys, gather feedback in the form of focus groups and roundtables and evaluate program participation results to determine program success.
- Performance-based programs (including sales and channel incentive programs as well as safety, wellness and productivity rewards and recognition for employees) are designed to impact specific company goals or performance indicators. Because these programs specifically address metrics, a measurement system (and baseline of performance) can be put in place. These programs are the easiest to measure, track and report success.
Effective Programs offer a Measurable Return on Investment
A program’s success is often determined by the energy, enthusiasm and “buzz factor” generated. Budget-conscious company leaders may not be satisfied solely with a program’s ability to “get people talking”. And, because increasing employee engagement is a growing concern for many company leaders, they are now demanding more and more quantifiable results from their employee programs.
Trained incentive professionals have access to wide-ranging research and also draw from their own experience in developing incentive, reward and recognition programs that include measurement systems based on your specific goals and objectives. There is no need to learn by trial-and-error; experienced professionals are ready to help!
Contact us today to get started. All Star Incentive Marketing will help design a customized research-based program that will achieve the desired results – and report the data to prove it!