60/40 Rule Applies To Sales Recognition
Here are several excerpts from a press release that references a recent study on sales recognition best practices:
Motivating sales people requires a mix of 60% tangible, 40% intangible incentives, according to data from research and consulting firm Best Practices, LLC.
Intangible rewards - that are clearly important to motivation - include special recognition by management at team meetings, praise in private and mails from direct managers. By contrast, tangible rewards are such items that can be touched or consumed such as gift certificates, trophies and plaques, and cash and dinner for two. A summary of the report "Best Practices in Sales Recognition Programs," can be found here.
The most frequently used tangible rewards are gift certificates, plaques and cash awards, followed by dinner for two. When asked if there was a ceiling on cash payouts, more than half (54%) of surveyed companies said there was.
This research (available as a fee download) profiles 84 companies across industries on the prevalence of intangible and tangible rewards as well as:"In this research, respondents strongly stated that a link exists between the motivation of staff, a system of rewards using tangible and intangible recognition and increased performance," said Jon Easter, director of Best Practices, LLC's Business Excellence Board.
- Tax implication of programs
- Communication of programs, including website support
- Presence of formal measurement of program
- Lessons learned