Thank you to our Research Advocacy Partner ita

Introduction and Background

  • As of 2016, 84% of U.S. businesses utilize non-cash rewards as a method of encouraging and engaging their employees, salespeople, and channel/dealer partners.
  • The body of evidence for best practices and optimal program design is increasing every year, and businesses are looking to their supplier partners for expertise and advice on how to most effectively structure their reward and recognition initiatives.
  • This research is designed to fill a gap by objectively identifying the non-cash rewards strategies and tactics used by top performing companies, providing benchmarks and best practices for the industry.
  • Most research benchmarking “top performing companies” leverages pre-existing lists of these companies – for example the Fast 500 or Best Places to Work
  • This research was designed to use a national cross-section of firms with at least $100 million in revenue, collecting data to objectively classify each firm as “top performing” or “average”
  • To qualify as “top performing,” a firm had to demonstrate strong performance in 2015. The most important requirement for classification as a top performer is financial growth in 2015 compared to 2014 - more than 5% growth in revenue or stock price. AND
  • Top performers also were required to demonstrate the following:
    • Strong performance with customers 
      • 90% or higher in customer satisfaction or loyalty, or
      • Customer acquisition rates higher than 5%
      • AND
    • Strong performance with employees  
      • 90% or higher in employee satisfaction
      • Loss rate less than 5% per year among high-performing employees
  • Reputation as a highly-desirable place to work – a place where high-performing candidates compete to work
  • The purpose of these survey questions and the ultimate classification as “top performer” or “average” was 100% opaque to respondents – they did not know they were assigned to a performance group
  • Through the research firm Intellective Group the IRF surveyed 940 U.S. companies.  625 average and 315 top performers.  

What Do Top Performing Companies Do Differently

Across ALL program types (Sales Incentive, Channel Incentive and Employee Recognition), Top Performing Companies are more likely to have

 

  1. Strong Belief in Reward and Recognition
  2. Strong Executive Buy-In
  3. Consolidated Programs
  4. Income-Based Budgets
  5. Higher Payouts
  6. Goal-Focused Design
  7. More Focus on Reach
  8. Leveraged Analytics
  9. Integrated Communications
  10. Excellent Support

How Do Top Performing Companies Structure Sales Programs Differently?

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How Do Top Performing Companies Structure Channel Programs Differently?

 

 

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Top Performer Channel 3

 

 

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How Do Top Performing Companies Structure Employee Programs Differently?

 

Top Performer Employee 1

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Top Performer Employee 1

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Top Performer Employee 1