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4 Tips to Create an Effective Incentive Program

How to Make Your Sales Incentive Program More Personalized and Effective
Tuesday, November 27, 2018

Published by: Online Rewards Sales Incentives

Sales Incentives

Today it is just not enough to have a sales incentive program—everyone has those. Your incentive program has to be effective for you to get the desired result. If you have not noticed a boost in employee motivation since you introduced your sales incentive program, perhaps it is time to put it up for review. You should consider making the program more personalized for all your staff.

A personalized incentive program uniquely affects all your employees. Personalization of your incentive program requires you to offer different incentives such as cash bonuses, paid time off, specific products, or gift cards. Your employees can then choose the incentive they would prefer after achieving the required goal. This is a great motivator because your employees know they will get exactly what they want.

Let’s take a look at four tips that will help you improve your sales incentive program.

1. Look beyond money

It is easy to believe that you can solve the problem of staff motivation by throwing money at it. However, money appears to work best in attracting and retaining people rather than being their primary motivator. An article on forbes.com states that emotional motivators are more effective than physical sources of motivation and they are usually conveyed informally. Peer-to-peer recognition is an excellent example of an emotional motivator because people appreciate approval from their peers.

2. Know what works best for your employees

It is important to note that not everyone can be motivated by the same thing. Understanding what drives your employees is a vital element of increasing their performance. You should organize a sales incentive program that will consider the different personalities within the organization and customize the methodology and awards accordingly.

3. Set reasonable quotas

Nothing is more demoralizing and frustrating than having an unreasonable target. One thing that your sales representatives will ask of you is that you give them a reasonable and potentially attainable quota. You need to be careful when allocating quotas for your staff so that you don’t kill their morale before they even start. A reasonable quota must be challenging yet achievable to provide the motivation required for optimal performance.

4. Select the right metrics for your compensation program

Choosing a compensation metric for your organization goes beyond merely selecting the first one you come across. You have to consider if the metrics will fit your organization’s structure to get the proper outcome. Ensure that everyone is working towards one common goal by involving the heads of every department in your organization in the process of selecting the right metrics. Just make sure that your company goals are put into consideration when choosing a metric.

Developing the right sales incentive program for your organization should be high on your priority list because it gives your organization a stable structure for impending growth. Although numerous factors will help you in putting together an effective incentive program, these four tips stand out and will help you in your task. In order to personalize your incentive program at an affordable cost, look no further than Online Rewards.

Sources: 2018 Global Human Capital Trends by Deloitte

Getting Maximum Results from Social Recognition

Gone Are the Days When Recognition Comes from the Top Down
Tuesday, November 20, 2018

Published by: Online Rewards Employee Recognition

Employee Recognition

It’s an age old fact that rewards drive even more success, but what kind of rewards work? This is where most people get it wrong. Yes, monetary rewards can be good motivators, but human beings aren’t donkeys—meaning, financially rewarding carrots don’t motivate us for long. It works initially, but eventually it loses impact.

The best kind of motivation is one driven from within: self-satisfying feelings of meaning, competence, and value. Smart managers are now adopting present day recognition programs that bring out these feelings to increase the productivity of their employees.

Social recognition is your best bet

Social recognition is an excellent way to develop a great working relationship among employees. When employees enjoy and celebrate their successes together, it improves the general working atmosphere within the organization. Gone are the days when recognition comes from the top down.

To keep your workforce motivated and satisfied, it is crucial that you adopt an effective employee recognition program that will keep recognition more democratic and horizontal. Social recognition shatters the idea that recognition should come from the boss to his employees.

Peer-to-Peer Recognition

Thanks to the technology available today, organizations can have workers around the world collaborating and interacting towards one common goal. These workers depend on each other for encouragement and support, so it is vital to have a social recognition system that will allow them to acknowledge each other from any part of the world.

According to a survey carried out by Interact Authentically and Harris Poll, over 69% of employees in America who have worked virtually agree that the adequate amount of communication needed for them to work effectively is lacking. About half of these people don’t feel connected to their colleagues, and about 53% stated that they put in twice the effort as their onsite colleagues to become connected within the organization.

Why is social recognition important?

Benefits of a great employee recognition program

Peer-to-peer recognition shouldn’t be ignored in today’s working atmosphere. Making your employees aware that their efforts have an impact on the growth of the company makes them feel more connected to their jobs and their peers. When an employee receives feedback on the job they have done, it motivates them to work harder for more feedback, thereby creating a positive loop.

You should take note that recognition—just like coffee—is best served hot, so ensure that the praise given out is meaningful and immediate. You don’t have to wait for your monthly meetings to congratulate the week’s top performers.

Peer-to-peer recognition also brings workers together and creates a friendly and healthy working environment. The availability of digital tools helps virtual workers become more involved in company processes and makes it easier to receive and give appreciation from their peers in the office.

One misconception that many managers have about recognition is that you only have to appreciate the "hard" goals. Yes, it is important to praise the employee that stayed up late to ensure that the end-of-year meeting was a success, but you should also not forget the employee that suggested the best snacks for the meeting.

Different people have different things that motivate them, so you should not assume that everyone will be motivated by the same thing. What most people generally appreciate, though, is when they receive public recognition from their colleagues.

This is the essence of social recognition. There are various ways you can maximize your recognition program. There are software platforms you can invest in that will help manage your recognition program efficiently.

Therefore, as a smart manager, you should not be afraid to join the bandwagon to move your organization forward. The Online Rewards employee recognition program can help you make your employees feel better about their work and improve the overall satisfaction in your organization.

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