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The Incentive Research Foundation Resource Center

Rewards and Recognition as a Vital Compensation Component

Aberdeen Group Logo

 

 

 To download the full paper, click here.

Background

In September and October 2011 Aberdeen surveyed 291 companies to support research on their study  "Sales Performance Management 2012: How Best In Class Optimize the Front Line and Grow the Bottom Line."  Their findings showed that the top 20% of companies (aka the "Best in Class") had the following profile:

  • 83% of Best In Class companies' sales reps achieved annual quota in the last year compared with 51% of Industry Average firms and 22% of laggard companies.
  • Best In Class companies had 23.1% average year over year growth in corporate revenue versus 7.2% for Industry Average firms and a decline of 5.9% for Laggards.
  • Best In Class companies had 9.7% average year over year improvement in average deal size, compared with 1.9% for Industry Average companies and a .4% decline for Laggards.

Key Findings: Organizations that Provide Non Cash Reward/Recognition Perform Better

  • Best in Class companies are more than twice as likely as all other firms to provide non cash incentives (21% of Best in Class vs 10% of other companies use R&R programs) 
  • 64% of Best in Class companies have a process to incentivize rapid activity around a particular product, an end-of-cycle-push, or even a way to dispose of excess inventory using spiffs versus compared with 48% of Industry Average firms, and 38% of Laggards.
  • Organizations that provide non cash reward/recognition had an average year over year annual corporate revenue increase of 9.6% versus 3% for all others.
  • Organizations that provide non cash reward/recognition had a 2.1% year over year increase in revenue per sales FTE versus a 0.7% decrease for all others.
  • Organizations that provide non cash reward/recognition had a 1.6% year over year increase in team attainment of quota versus a decrease of 2.2% for all others.
  • Adopters of non cash rewards/recognition also had 34% shorter sales rep time-to-productivity and 10% shorter sales rep time-to-hire.

Case Study

  • The paper also provides an short case study of an Incentive Travel Program implemented to improve sales productivity.  
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