Incentives are EVIL?

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‘Incentives are EVIL’ – this may sound like an extreme view, but read on and you may be surprised...

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Incentives are EVIL?

  1. 1. corporaterewards.co.uk Incentives are EVIL Dan Kelly, Sales and Marketing Director, Corporate Rewards
  2. 2. Incentives are EVIL • Dan Kelly, Sales and Marketing Director at award-winning incentive recognition and reward, motivation and events agency Corporate Rewards, presents the changing perceptions of incentive programmes • “Incentives are EVIL”. This may sound like an extreme view, but you may be surprised...
  3. 3. Opposing views • Incentive schemes can be divisive, provoking opposing views: – Those who view them positively and believe in the benefits – Those who are ambivalent, perhaps even disinterested – Those who consider incentives to be an unnecessary, timeconsuming, admin-generating evil • Those in the latter category generally believe that employees shouldn’t be rewarded for simply doing their jobs; what are they paid for? Why give them more? What’s wrong with commission? • And so on...
  4. 4. Driving productivity • Research proves that incentives and rewards increase productivity more than commission. Why? – Commission is perceived as a salary extension – Incentives are viewed as a bonus - recognition for going the extra mile • The frequent inclusion of commission in job ads presents it as a part of a standard package • Incentives exist to reward over-achievement and therefore drive overachievement!
  5. 5. Good & bad • Poorly executed incentive schemes can create negative feedback • Getting it right can positively impact your bottom line • Successful incentive schemes are strategically embraced and driven from the top • Love them or loathe them, incentives now play a huge role in today’s competitive business culture • Used well, they will: – promote business growth – attract and retain the best employees
  6. 6. Why incentives? • Commission is basically cold, hard cash • ‘Incentive’ and ‘recognition’ are emotive words, triggering: – Passion – Accomplishment – Satisfaction – Motivation
  7. 7. The history • Historic poor use of incentive schemes has generated negativity • Most negative feelings date back to early, experimental initiatives • Drivers of this ‘evil’ image were: – increased admin – high costs – complex arrangements • These are no longer a part of the incentives world • In the past three or four years online schemes have facilitated a shift into genuine business benefits
  8. 8. The next generation • The next business generation will be the internet generation • The internet is your quickest and most direct route to your staff • 10 years ago social media hardly featured. Now: – Facebook has 995million users – Twitter sees over one billion tweets every three days – Four million YouTube views take place every day – Amazon has 75million unique visitors every month. • It’s why businesses are embracing online culture in every way they can
  9. 9. Why online? • ‘Switched-on’ businesses are turning to online incentive platforms for: – Ease of use – Affordability – Quick impact – Taking the ‘evil’ out of incentives • We recognise this is how the world communicates now • It’s the driving force behind our own bespoke, easy-to-manage online platform
  10. 10. Online benefits • Managing incentive schemes online reduces admin through: – integrated reporting tools – dashboard reporting – putting management information at your fingertips • Performance is easily tracked and rewards are facilitated quickly by: – online catalogue – e-vouchers – prepaid cards • The upshot is: – reduction in costs – no drain on resource • Only an online system could deliver these benefits quickly and efficiently, without complex processes
  11. 11. EVIL can be good! • Going online is the ‘good’ approach, negating the ‘evil’ of old • However sometimes there’s no harm in evil, as long as you know what it really means... • Incentives and rewards should – be Engaging – add Value – Increase revenue – provide Longevity in relationships • Used correctly, incentives are a necessary evil that deliver £££ to your bottom line!
  12. 12. Find out more www.corporaterewards.co.uk/blog @CorpRewards Connect with corporate-rewards-uk Call us 0370 405 2020 Let’s start the conversation
  13. 13. Call us 0370 405 2020 8 The Courtyard, Timothy’s Bridge Road, Stratford-upon-Avon, Warwickshire. CV37 9NP email us enquiries@corporaterewards.co.uk corporaterewards.co.uk

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