The Right Partner Makes All The Difference Part II
In my last post, “The Right Partner Can Make All The Difference!,” I talked about how surrounding yourself with the best-possible people puts you in the best-possible situation to succeed. This holds true for sports, business, and life in general. For success in the business world, I suggested that a great way to bring in the most-talented employees is by providing a corporate incentives.
But do incentives really make a difference?
Yes! Incentive programs create a corporate culture that helps separate your business from your competitors, and help you hire–and retain–the best of the best. Not offering incentives, or offering the wrong incentives, can cost you a chance at winning gold, as your competitors pass your by and poach your top talent from you.
Check out the stats below:
- Properly structured incentive programs can increase employee performance by as much as 44%.
- Companies using incentive programs reported a 79% success rate in achieving their established goals when the correct reward was offered.
- A 5% increase in employee retention can generate a 25 to 85 percent increase in profitability.
- 42% of employees consider rewards and recognition program opportunities when seeking employment.
- Companies that executed a formal, planned-out employee engagement program reported a 64% greater increase in the level of employee engagement than those without one.
- 41% of customers are loyal to a brand or company because they consistently notice a positive employee attitude
- Annual revenue increases are 3x higher in companies that use a tangible sales incentive over those that don’t use an additional incentive
- 90% of business leaders believe that an engagement strategy could positively impact their business, yet only 25% actually have a strategy in place.
Tips To Consider When Designing Your Own Incentive Program
Okay, so we have the stats that say an incentive plan works, but what are the steps you need to consider when designing and implementing your own incentives plan?
What Is The Purpose?
What is the point/goal of the incentives plan? What is your company looking to achieve? Properly outlining goals and objectives allow you to have measurements in place that will help you effectively track if the incentives program is successful. These goals should be properly communicated and outlined to all those involved so your management and employees all have a clear understanding of the goals and how they can be rewarded if they reach them. Decide who is participating in the incentives plan and who would benefit the most from these rewards / incentives.
What Are The Metrics?
Ok, so now you know what you want, so how are you going to measure success? What are the metrics for the incentives plan? Are you counting annual sales, revenue growth, income, earnings, etc.?
What Is The Structure?
The structure of your incentive plan is next up. How are you going to award incentives? Is there a minimum or maximum limit? How are payments delivered? How do the incentives tie into your sales cycle? What key data is needed to determine who and when payouts are awarded?
How Is The Plan Going To Implemented & Administered?
Proper management and project administration are necessary to ensure a successful incentives program. Set up correct policies, monitor progress, communicate to staff, and timely payouts are all critical. Remember, choosing the right program partner, can make all the difference.
So Which Incentive Should I Chose?
Employees prefer cash or cheque-based rewards. However, cash or cheque-based rewards are slow to send out, lack modern security measures, and are easy to misplace and hard to track.
An open-loop incentive card is the best route to take. Simple, secure, and usable virtually everywhere that Mastercard or Visa is accepted, including online and overseas, a reloadable card is the modern tool for incentive disbursals. Payments can be sent out to cards in minutes, and can be made as often as required. Plus, the branded cards serve a great reminder that your employees are part of a winning team.
Designing and implementing an incentive plan takes teamwork. To succeed, you will need the right partners from top to bottom, from employer to base-level employee. If you want to directly improve the bottom line of your company and ensure the long-term success of your employees, you need the proper partner to help implement your plan.
Mark McKoy, is a retired Canadian Olympic Athlete and Gold Medalist. Mark’s Gold Medal in the 110-metre hurdles was the first Track & Field Gold Medal for Canada in 60 years. He was also one of the inaugural recipients to be inducted into Canadian Track Hall of Fame. Since retiring from competition in 1996, McKoy has been a trainer, sports ambassador and business consultant.
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