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Sandi Daniel: 5 Common Incentive Program Myths
Today I am going to talk about: 5 Common Myths about Incentives:
Myth #1: CASH IS KING
Maybe so, but when it comes to engagement, cash is the court jester. Research proves that non-cash incentives are far more effective. People will gush about a trip or item they earned, but cash lacks the same trophy value. They will forget how they spent the money, but they never forget an experience. Plus, once people get used to cash, they don’t see it as recognition– they usually feel its “owed to them”.
Myth #2: INCENTIVE PROGRAM’s ARE EXPENSIVE
Trust me, disengaged employees are more expensive! Studies have proven that fully engaged employees are about 22% more productive than the average employee. Yet, employees who are fully disengaged perform at only half the value of average employees and that costs you a lot!
Myth #3: PEOPLE ARE LOYAL TO MY ORGANZATION
We’d all like to think so, but how loyal you are to a store or brand? Everyone wants to be true to their local shop, but at some point most people go to the big box. You can’t count on loyalty unless people feel they are getting something in return.
Myth #4: WE DON’T NEED PROFESSIONAL HELP
I’m sure whatever business you’re in, you are the expert! If you need to rewire your house, you hire an electrician. Do you have the expertise to rewire a strategy for engaging your audience?
Myth # 5: AN INCENTIVE IS A SINGULAR “EVENT”
A one-time event may give you a short term “boost”, but it’s like an energy drink, it will fizzle out quickly. A good incentive program is actually a business formula by which you encourage desired behavior. Frequent flyer programs have been an excellent example of how Airlines have maintained loyalty through the worst of times. Remember, Incentives must be woven into your long term business strategies to be TRULY effective.
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