Avoiding Incentive and Recognition Mishaps. how to avoid incentive and recognition disaster by leaving it to the pros
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1 Avoiding Incentive and Recognition Mishaps how to avoid incentive and recognition disaster by leaving it to the pros
2 Is this ebook for me? Are you thinking of implementing a recognition or incentive program? You probably know the benefits of outsourcing incentive and recognition programs, but you're a busy professional. You have a lot of responsibilities and spending countless hours managing an incentive program takes you away from other priorities and to do it right, involves knowledge of program management. Before you head down the road of potential program disaster, ask yourself: Do you have enough time to manage the program? Do you have experience in incentive program design? Do you have the technology and resources to support the program? Need Help with Executive Buy-In? Download our Guide Why Implement an Enterprise Employee Recognition Program
3 There are a lot of benefits of outsourcing your incentive and rewards program. Weighing all of these considerations is critical to the success of your program. An experienced incentive company understands the science and art of motivation and how it applies to business goals and objectives. They know goals direct behavior and when an incentive is included with a specific goal, an individual is more motivated to achieve that goal. Designing an effective program for behavioral change requires experience and incentive design knowledge. Sales Operation and Performance Expertise A reputable incentive company knows sales performance. They understand how to design a program that aligns with sales objectives using fair and equitable goals. They also include plan design elements that correlate with your work culture, performance model and sales roles and models, as well as for different industries, sales cycles, performance levels, etc. Self Liquidating A well-designed and managed incentive program will pay for itself by creating additional value for shareholders.
4 Administration A professional incentive company has the experience and resources to manage all aspects of a program, including data, budgets, customer service, fulfillment, etc., efficiently and effectively at a much lower expense. Knowledge of Program Design Program design can make or break your incentive goals. It requires knowing how to structure a program with the right motivators for the right behavioral outcomes, how to budget for a program, which types of rewards to offer and a long list of additional elements. Liability and Tax Compliance Your incentive provider should guide you on the specific provisions of the program to determine your tax consequences and design the program accordingly. An incentive company has the knowledge and expertise to advise you about any liability issues associated with an incentive or rewards program and in some cases, will bear the liability. If a company chooses to manage the program internally, all liability falls within the company. Click here for more information about understanding incentives and taxes
5 Dedicated Account Team Let s face it. The person who is administering your program most likely has many other job functions. This means your incentive program gets partial attention, which means it will get partial results. An incentive company s job is to be at your service whenever you need them. Travel Expertise If your program includes incentive travel, you want to take advantage of the expertise of an incentive travel company. They will not only have knowledge of the travel business, they will have a wide network of resources, purchasing power and negotiating skills to ensure you have the ultimate experience and the optimal price. Choice of Rewards Purchasing power applies to all rewards as well as travel. If you include merchandise and gift cards, an incentive company will have partnerships and bargaining power to offer your participants the widest variety of reward offerings while maximizing spend. Hidden Costs Consider program management and costs such as: administrative, fulfillment, customer service, technology support, legal and tax compliance. Can you support these functions internally?
6 Security Program administrators are responsible for the security of employee data and other confidential information that could lead to program mismanagement, including theft and financial misreporting. Outsourced providers are experienced and prepare to assume the accountability and liability for the security of your program. Technology Incentive and rewards platforms are specially designed to execute programs, from e-commerce functionality to database and reporting technology and integration with other systems. Incentive companies with these platforms have the resources to administer and manage them, and have the expertise in online reward technology to implement and operate a program with a seamless user experience. Reporting/Metrics Although companies may have data on their employees, they often don t know how to use it for an employee recognition or incentive program. Incentive professionals can take various forms of data and aggregate them to help gain insight and analytics about the success of your program.
7 It's in the Numbers: Cases for Outsourcing A major airline decided to outsource its employee recognition and incentive program when they realized their decentralized rewards programs did not align with the company's business objectives and were not achieving the results they wanted. The airline has seen substantial returns from its outsourced investment with an active participation rate of 70% in its rewards program--about double the average participation rate. In addition, the program generated: 490,002 recognition contacts (the number of recognition receipts) 1,470,006 recognition impressions $346 million in value to the business in terms of initiatives supported with programs a 3,975% return on recognition (ROR) Outsourcing Adds Value A study by the Incentive Research Foundation showed a variety of efficiency-oriented metrics favor outsourcing incentive management. For example, companies that outsourced incentive operations were able to hire and train sales reps more quickly and report average sales cycles 21% shorter than other firms.
8 Communications and Marketing The key to success for any incentive program is making sure your participants understand it, and are continually reminded of it to generate enthusiasm. Incentive companies should have a thorough communications plan to support the program, including branding, messaging, design and delivery. They will have the expertise to create effective communications that motivate your participants as well as measure and adjust campaigns accordingly. ROI In any business initiative, results matter. A professional incentive company measures the metrics of a program from start to finish ensuring you realize your desired outcomes, whether it s a lift in sales, improved retention or productivity, etc. A professional incentive company will be able to to measure your costs versus your investment to determine ROI, as well as gather the right information to measure tangible as well as intangible results. Click here for insights on incentive program ROI
9 Checklist for Hiring an Incentive and Recognition Company 1. Does the company specialize in incentives and rewards/recognition? 2. Does the company offer strategic solutions as well as tactical implementation? A full-service company should have the expertise to design a program as well as implement and manage it. 3. Does the company have experience in behavior change as well as sales incentives? 4. Do they understand how to align your program with your business goals and objective? 5. Does the company understand the concept of "moving the middle?" 6. Does the company have an online incentive program system that incorporates communications, rewards, reporting, e-cards, gamification and social recognition? 7. What marketing expertise do they have? Get examples of past communications and their results. 8. Has the company been clear on what is included in their budget, including administration and management fees? 9. Do they offer comprehensive reporting and ROI services? 10. Have they explained program tax implications and their policy? 11. Is the company Sarbanes Oxley compliant? 12. Does the company offer training and technical support? 13. What level of customer service is included in a standard contract? How often is it available? 12. Does the company provide reward fulfillment? What are the fulfillment policies? Ask for testimonials, case studies and references!
10 Resources ebook:the A-Z of Sales Incentive Programs Articles: Four Ways Rewards and Recognition Can Impact Your Bottom Line Data Sheet: Rewards and Recognition Video Blog: Use Incentives to Help Fill The Sales Quota Gap Contact our recognition and incentive experts for a demo! Blog
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