A recent study by the Aberdeen Group into the best practices of “Best-In-Class” companies revealed that most of the companies prefer to use employee recognition that comes in the form of non-cash employee rewards. The study indicates these companies view these incentive rewards as a vital component of the creation of sales motivation, and 57% of recipients said that internal recognition is one of the most important non-financial resources they had available.
The survey was conducted through 312 end-user organizations in an attempt to understand how these companies deploy sales motivation. The Best-In-Class companies (the top 20% of companies) were the ones who had higher customer retention rates; higher year-over-year increases in the number of sales staff that achieved or exceeded quota; and substantially larger increases in contract value than their peers.
The study found that when these firms employed an employee recognition program, they achieved a 14.8% higher attainment of quotas, and a 5.9% higher rate of customer retention. Those are significant numbers. As a matter of fact, 100% of these Best-In-Class companies utilize incentive travel programs to create sales motivation in their sales force.
Some other findings of the Best-In-Class companies include:
- They offer 11% more verbal praise, and 90% more public employee recognition, and 94% more peer-to-peer recognition for progress toward goals.
- They’re 23% more likely to promote incentive programs that utilize group travel, 75% more likely to host company-sponsored events; and 60% more likely to offer peer-to-peer recognition as a year-end sales incentive.
- They’re 26% more likely to consider teamwork as a valuable part of the sales process.
Obviously, companies who employ these employee recognition methods produce better results. They enjoy sales forces that are more motivated to achieve their goals; who work harder; and who produce more profit than companies whose employees aren’t recognized or engaged.
Here at Incentive Solutions, we’ve been creating employee recognition programs and sales incentive programs that boost revenue and ROI for decades. It’s what we love and what we do best. If you’d like to know more about starting one of our employee recognition programs or one of our sales incentive programs in your company, call us today at 1-866-567-7432.