Here’s an interesting figure (as reported by the American Institute of CPAs) – 68% of a company’s value is in its employees.
Human capital makes the wheels go around. And performance management in the form of incentive programs keep that human capital on deck.
Turnover is reduced and turnover costs money - money that can be put to better use.
If you thought the number at the head of this post was interesting, try this one – The Society of Human Resource Management has determined that incentive programs improve productivity at a rate of 63%.
And this was accomplished even when the incentive program was smaller in scope, encompassing top performers only.
What does a 63% hike in productivity mean?
It means a commensurate 58% increase in profits.
That’s how much incentive programs can increase revenue!
When deploying incentives, it’s key that goals set for participants be challenging but attainable. Setting unrealistic goals is an alienating practice from the employee’s viewpoint.
Goals seem less intimidating when employees can see themselves achieving them. The trick is to set the bar to a height not (yet) attained, but entirely possible with just a little extra “lift”.
Every incentive participant gets a personal goal that transcends the previous quarter’s results. The incentive is awarded when these achievable goals are met by everyone on the team.
Your incentive should be clearly explained. Send the message and then repeat it again and again. Face-to-face and electronic communication, signage, progress check-ins and other opportunities to share the information allow the incentive to gain steam and spur productivity.
Here’s a framework for communicating with participants:
This is a simple but effective framework for sharing the incentive with your team and spurring them forward to achieve just a little more. With achievable goals, you know they’re going to go for the gold.
And you know they can do it!
Something key to remember about incentive programs is that your company gets the benefit before the cost is even incurred.
An incentive program is an investment that reaps immediate rewards in the form of revenue via productivity, motivation and competition.
A well-crafted incentive program increases revenue. By how much is down to the effectiveness of the program’s design, execution and the level of engagement.
Factors like knowing what motivates your employees to participate wholeheartedly are key. This is the cornerstone of effective programming.
Incentive Travel Group has been creating winning incentive programs for companies like yours for over 20 years.
We know your staff is giving its all. Add capacity with a trusted advisor who brings you superior programing insight, laser-sharp logistics, seamless execution and professional outsourced support.
If you’re ready to see employee engagement skyrocket, call on the incentive programming experts at ITG. That engagement is where revenue growth begins.
Make your incentive program count, with ITG.