Traditional reward and recognition programs might not be needing the needs of sales staff: study
In a tough economic climate, traditional reward and recognition programs might not be effective when it comes to increasing the performance of sales staff, according to a new study. While the vast majority of salespeople receive incentives, less than two-thirds said it impacted their behaviour.
The Canadian Professional Sales Association’s survey of 417 members focused on the type of incentive programs salespeople and managers are offered, and then looked at other reward programs offered in organizations.
“In contrast to other markets, we are seeing an over-reliance on fairly traditional sales incentives awards and program structure,” said Stephen Fraser, vice-president of strategy and design for Carlson Marketing Group, the sponsors of the survey. “We know that today’s sales manager spends a lot of time trying to improve the performance of their sales force … and we wonder if sticking to the tried and true recognition styles might be a barrier to that aim.”
Fraser said the challenge for sales managers will be to ramp up investments in innovative programs targeted at sales professionals to engage and motivate them in new ways.
Sales representatives accounted for 58 per cent of the respondents and sales managers 42 per cent. Among the results of the study:
•90 per cent of members reported receiving a cash or non-cash incentive from their employers;
•62 per cent of survey respondents who received a cash or non-cash incentive reported that the incentive had a definitive impact upon their work and sales performance; and
•66 per cent of members reported that cash was the most popular incentive award offered by employers followed by travel and merchandise offers.
In lieu of cash incentives, respondents received the following non-cash awards (listed in order of preference):
•informal rewards;
•company merchandise;
•video rental debit card;
•promotional items; and
•hardware and household items.
The Canadian Professional Sales Association’s survey of 417 members focused on the type of incentive programs salespeople and managers are offered, and then looked at other reward programs offered in organizations.
“In contrast to other markets, we are seeing an over-reliance on fairly traditional sales incentives awards and program structure,” said Stephen Fraser, vice-president of strategy and design for Carlson Marketing Group, the sponsors of the survey. “We know that today’s sales manager spends a lot of time trying to improve the performance of their sales force … and we wonder if sticking to the tried and true recognition styles might be a barrier to that aim.”
Fraser said the challenge for sales managers will be to ramp up investments in innovative programs targeted at sales professionals to engage and motivate them in new ways.
Sales representatives accounted for 58 per cent of the respondents and sales managers 42 per cent. Among the results of the study:
•90 per cent of members reported receiving a cash or non-cash incentive from their employers;
•62 per cent of survey respondents who received a cash or non-cash incentive reported that the incentive had a definitive impact upon their work and sales performance; and
•66 per cent of members reported that cash was the most popular incentive award offered by employers followed by travel and merchandise offers.
In lieu of cash incentives, respondents received the following non-cash awards (listed in order of preference):
•informal rewards;
•company merchandise;
•video rental debit card;
•promotional items; and
•hardware and household items.
