New research suggests that the best companies (top 20%) are a third more likely to use non-cash incentives, such as travel, merchandise, and gift card awards, in their sales incentive programs. The study, which was unveiled last week, indicates that these awards are critical in getting the best performance out of sales teams. The respondents surveyed were asked to identify their top three choices that are most effective at yielding the strongest sales performance. While financial compensation is still tops, the trend has really changed over the last year. Back in 2012 98% of respondents preferred financial compensation, compared to just 76% this year. The impact of financial compensation is being considered less of a dominant “no-brainer” in sales. The runners up include the non-cash incentive programs, gift cards, travel, merchandise, etc, designed to augment the financial leverage that employers have over their front-line sellers. The highly successful organizations recognize that today’s sales personnel and account managers require a far more complex managerial landscape than their predecessors. They are aware that there is a need to manage on a more holistic level and not just consider meeting quota expectations.
To Review the complete study along with recommendations for your company, visit the IRF here!
