Back to Incentive Basics: Types of Incentive Programs
Get to know the types of incentive programs you can use to drive performance.
When it comes to motivating your team in this day and age, you’ve got multiple types of incentive programs to choose from. But while that can be a blessing, it can also get confusing, and fast. What works for one organization might not work for yours. How much do you spend? Who’s eligible? How do you figure out the best incentive program for you?
It’s OK to feel under-informed and overwhelmed at the same time. But don’t worry, we’re here to help. Whether you’re rebuilding an old incentive program or starting from scratch, let’s introduce (or review) the different types of incentive programs available.
But first, the basics BEHIND the basics:
Know your business. And know your people.
That’s it. Learn ‘em, love ‘em, live ‘em. If you don’t follow those two simple instructions, no incentive program you come up with will ever hit the mark. Now, once those are covered, how do you choose the right way to motivate your team to achieve higher performance levels?
- Define clear goals: What are you trying to accomplish, and why? Is it achievable? Is it measurable?
- Set your budget: If you’re developing your first program, start small – you don’t want to set a bar you can’t reach next year. If you’ve run programs before, leverage your existing data to determine the most bang for your buck.
- Consider your audience: Is age a factor? What about location and demographics? You don’t want to reward your beach-loving Hawaii rep with a North Face parka. What will motivate them? What’s worked well with past incentives? What’s relevant and valuable? And what will make your people feel appreciated?
This may seem like a lot of questions, but the more you can answer now, the more successful your program will be. Now, once your homework is done, there are three basic buckets of incentives to consider for your program:
Cash and Bonuses
This is still the easiest, most common, and often the first type of incentive people think of. But while cash is king, it’s not the most personal option, and can be easily forgotten. And, although cash can be an effective motivator to hit goals on a deadline, many organizations (and recipients) don’t tie this incentive to a specific goal, often relegating it to an end-of-year bonus for overall performance. To make this option work harder, consider tying it to specific tasks or goals, and then putting the cash towards an experience or personal goal, like finishing a degree, learning to sail, or putting a down payment on a car.
WORKS WELL FOR:
- Sales teams
- Employees (company-wide)
Points-Based
With this type of incentive program, recipients earn incrementally and have significantly more personal choice in their award than a check at the end of the year. You can set your program to accrue points based on sales, leads, calls (for call centers), or any other desired action. Then, much like popular loyalty programs, your people can cash in their points for experiences, travel, merchandise, or gift cards whenever they choose, whether it’s one gigantic top-tier item, or several mid- or lower-tier items.
WORKS WELL FOR:
- Sales teams
- Employees (company-wide)
- Distributor/partner programs
Travel Incentives
One of the best ways to reward your people with experiences rather than “stuff” is the travel incentive, which is often tied to larger goals over a longer period of time, and awarded to an elite group of performers. You choose a destination and event that fits the culture of your business – but also one your people aren’t likely to get to on their own (high-profile conferences, conventions, concerts, or festivals come to mind). Once goals are set, either individually or as an organization, progress (sales or other metrics) can be tracked to determine eligibility for the group travel experience, and just like that, you’re making memories worthy of your company’s “About Us” page.
WORKS WELL FOR:
- Sales teams
- Network marketing teams
- Distributor/partner programs
So, there are the basics – a good starting point if you’re just ramping up your incentives journey, or rebuilding your program. Need help taking the next step? We work with you to ensure that every base is covered, every incentive is meaningful, and you get just the right fit for your business and your budget. Just contact us today to get started.
Give Your “B” Team the “A” Team Treatment
There’s big benefit in motivating your average players.
You may be old enough to remember the old “We Try Harder” advertising campaign for Avis. If you’re not, here’s a two-sentence case study: Avis was the number two car rental company (behind Hertz) for years. Rather than fight it, they embraced their second-place status in their marketing with the simple line: “When you’re only No. 2, you try harder.” It works the same way for your organization.
Number two is hungry. The middle kid wants attention. The second-string quarterback wants to get off the bench. And your “B” team wants to get to that next level. So why not encourage it?
Technically Speaking, It’s Not About Money
When it comes to attracting the top tech talent, look further than your checkbook.
From Silicon Valley to Washington, DC, the war for the top tech talent rages on. But in a marketplace crowded with stock options and sleep pods, how can you make your organization – and your compensation plan – stand out? (more…)
The Power of Personalized Incentives
Why relevant, tailored incentives are more meaningful than cash.
Bonuses or cash incentives are supposed to be a lay-up – the easy, simple, way to encourage your salespeople, channel partners, or employees to reach their goals. But if that’s the core of your incentive program, you could be failing as you read this. (more…)
It’s Not a Trip; It’s An Experience
Why the smart approach to incentive travel is no longer just about the destination.
From magazines and morning TV shows to one of the most popular rewards programs in the world, there’s a lot of talk about accumulating experiences instead of stuff. And it’s gaining just as much traction in the world of incentive travel. (more…)
3 Ways to Increase Meeting Engagement
Getting attendees to the event is the first step. Keeping them engaged is the game changer.
There’s a lot of time and effort that goes into preparing your event or meeting, from choosing an enticing location and intriguing topics to selecting speakers who people actually want to listen to. But these days, even when attendees are “there,” they’re not. Work e-mails, phone calls, the yummy apple tartlets on the continental breakfast table – everything is nibbling away at their actual engagement. (more…)
You’re Not Spending, You’re Investing
Channel & sales incentives aren’t expenses – they’re relationship and business builders.
The expenses associated with offering rewards, events, and exclusive experiences for distributors and channel partners can be a daunting proposition – especially if you work with a large network and have a limited budget. But what you might be missing is the value of these incentives – not to your partners, but to your business. (more…)
What You Need to Know to Get Started With Channel Incentives
As distributors and channel partners, you understand the importance – and challenges – of cultivating strong relationships. Keeping your partners motivated and aligned with your desired outcomes is a perpetual task, and without robust channel partnerships, your products are literally going nowhere.
So how do you engage and encourage your channel partners, get them focused on your products, or steer them towards specific behavior to benefit everyone? (more…)
Why Sales Incentives Work
If you have a sales team of any kind, chances are you’ve implemented some sort of incentive or bonus plan to motivate them. Whether it was cash based (commissions, bonuses, etc.), or non-cash based (trips, prizes, points, or other awards), sales incentives play a large role in the way we motivate our teams.
The type of sales incentives that work best for your team largely depends on your goals. Regardless of the type of incentives you choose, there are many more benefits from a sales incentive program other than simply “improved performance” or “higher sales,” especially when the rewards are not cash-based. Read on to discover the benefits. (more…)
Congratulations 2016 Star Performance Award Winners!
We at Motivation Excellence are dedicated to providing incredible experiences for our clients as well as participants on each and every program we deliver. In order to accomplish this, we partner with only the finest hotels & resorts, destination management partners, and travel support companies in the industry. Our commitment to excellence largely depends on the companies we choose to partner with. (more…)
