Performance Plans
Performance Based Incentive Plans
The right incentive plan properly implemented can motivate employees, increase productivity and allow the employer to differentiate pay given to high performers. An article in the Harvard Business Review (March-April 2000), "Leadership That Gets Results," reported that of six leadership styles studied, the use of rewards was the single highest predictor of 'organizational climate' and in turn had a direct correlation with financial results. 'Organizational climate' refers to a set of measurable properties of the work environment that are perceived by the people who live and work in it, and that have influence on their motivation and behavior. Climate characteristics that have been determined to significantly impact a company's bottom line are: flexibility, responsibility, standards, rewards, clarity and team commitment.
Incentive programs with tangible, memorable rewards are proven employee motivators. They boost sales, company morale, and build lasting bonds between you and your employees, customers and partners. 'Performance Based Incentives' do much more than 'give stuff away.' Sales Creators is primarily an integrated business solution provider; we design plans to help drive performance by creating incentive programs that are cost effective and that deliver outstanding ROI for our clients.
Performance based incentive programs can be set up for every division within a company. This is one of the more effective ways of performance building and it explores new ways to motivate your employees to outperform while have fun doing so. Sales Creators will build the promotional materials for your incentive program, select the theme and prepare the administration tools. Proper design and presentation will engage your employees to get them excited, and keep them excited during the incentive period.
To Get the Most Out Of Any Incentive Plan, We Advise the Following:
- Post daily results in a location that cannot be seen by customers, but can be seen by the performers. The payout will vary (it can be weekly, monthly or longer), but feedback should be available daily.
- Separate incentive pay from regular pay. We advise issuing different checks rather than combining with regular paychecks.
- Another excellent method is to offer non-cash incentives. These are not confused with ordinary pay and will be remembered longer than cash.
- Individual incentives are more effective than group incentives. You may add an incentive for group accomplishments, but the plan should make a distinction between individual contributions and accomplishments.
- Make sure that your day-to-day management is positive. There is no substitute for daily positive contact with employees. Take time to recognize even the smallest success or improvements.
- Thoroughly evaluate the effectiveness of your incentive plan on performance, cost and employee satisfaction on a regular basis.
Performance Based Incentive Plans Start With a Company's Toughest Objectives:
- Increasing profit
- Increasing market share
- Increase profitable sales
- Acquiring new customers
- Branding your product or service
- Improving customer service
- Safety programs
- Customer building
- Reduce workplace turnover
- Attendance
- Greater employee motivation
- Increase productivity
Merchandise Incentive Programs
Merchandise point reward programs offer high impact incentives because of the long lasting value as well as the budget flexibility they offer. You can have Points given and accumulated for achieving certain goals. Points are redeemed for items the participant desires. For budgets that are very tight, strict guidelines can be set at the start of the program to limit the number of winners. Gift Certificates to local businesses or restaurants can be used for rewarding the achievements.
Contest Incentive Programs
Contests can be designed to help reach the company's objectives. The advantage of a contest incentive program is that it is the best way to involve different departments to solve a common problem (absenteeism, customer service, productivity, etc.). Contest themes can be designed to promote the objective or to support a local event or team.
Customer Incentive Programs
A recent study conducted by Maritz Research indicated that out of 1,205 adults polled, 49% participate in some form of customer-reward program. Eighty percent indicated they do more business with companies because of reward programs. Another customer Incentive Program is based on loyalty. A well executed customer loyalty program can deliver a substantial array of strategic benefits. Here are some examples.
- Increase purchase frequency.
- Build a history of the customer’s purchasing habits to serve them better.
- Establish a promotional campaign to drive marketing campaigns.
- Support brand-building initiatives by linking highly-perceived and complementary lifestyle rewards to a brand.
Team Building
Incentive programs can improve communication and build positive attitudes of employees who are assigned to do the same tasks. These programs always improve productivity, which leads to higher profits.
Destination Incentives: One of THE BEST Incentive Programs
Incentive travel programs are the most recognized and successful motivational tools available. They provide a 'once-in-a-lifetime' experience designed to motivate people and recognize participants for meeting exceptional levels of performance in support of your company's goals. If you are looking for new and innovative ways to increase your company's revenue and profits, improve customer satisfaction, promote team building, or provide a platform for both training and reaching new business goals, invest in a Travel Incentive Program. You will be investing money in your company to see greater profits.
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