Tuesday, April 10, 2012
Reward programs lift profits over threefold
Results of International Research Foundation research prove the effectiveness of non-cash reward and recognition programs to substantially increase business' bottom lines. Companies that implement reward programs, such as those tied to prepaid cards, can realize an average revenue increase of 9.6 percent, while companies that don't have reward programs see only 3 percent growth, the IRF found.
The findings, based on research conducted by the Aberdeen Group and published in Sales Performance Management 2012: How Best In Class Optimize the Front Line and Grow the Bottom Line, showed that organizations providing non-cash reward/recognition (R&R) programs for their employees had an average year-over-year annual corporate revenue increase of 9.6 percent, versus 3 percent for all other companies.
Additionally, R&R providers had:
- A 2.1 percent year-over-year increase in revenue per sales, versus a 0.7 percent decrease for all others
- A 1.6 percent year-over-year increase in team quota attainment goals versus a 2.2 percent decrease for all others.
- A 34 percent shorter sales rep time-to-productivity and 10 percent shorter sales rep time-to-hire for all others
The report can be accessed at www.theirf.org/research/content/6085642/rewards-and-recognition-as-a-vital-compensation-component/ .
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