Organizations that implement non-cash reward and recognition programs have annual revenue increases averaging of 9.6% vs. just 3% for all other companies – more than three times higher! A new study by the Aberdeen Group and distributed by the Incentive Research Foundation (IRF) underscores the importance of rewards and recognition as a vital compensation component and outlines the competitive advantage companies gain when they go outside their organization for assistance in designing and implementing such programs. IRFPresident Melissa Van Dyke explains that the study examines “Best-in-Class” trends for sales force compensation, finding that top-performing companies are twice as likely to use an external partner when designing and implementing such programs. “Interestingly, this study also demonstrates that the size of the organization isn’t a significant factor, but that corporate senior leader buy-in is a key ingredient for success,” adds Van Dyke. “This study definitively shows organizations that implement non-cash reward and recognition programs outperform all other organizations in several major business indicators,” notes IRF Chief Research Officer Rodger Stotz. “Perhaps the best lesson to be learned from our analysis is that professional sales staffs respond to measurable rewards and recognition much like other employees, so it’s not surprising to find that companies using such programs post better sales results.” To view the paper, select the Research tab at www.TheIRF.org or visit http://theirf.org/research/ Greg McKegg Authentic
