You would never limit your annual earning potential. So why would you do so for your incentive program?
When considering the launch of a reward program, be it for the purposes of how to increase sales, motivate employees to meet company targets or for channel marketing, many people set limits on their program success. By starting with a specific budget allocation, program managers essentially place a cap up front on their brand awareness building, employee motivation or overall distribution channel competitive advantage.
An alternative to this type of program construction is to begin by setting program goals. By clearly articulating up front what the incentive program is intended to achieve, it is then possible to determine the budget required.
This approach offers several key advantages. The incentive program is:
- Scalable and can grow as the business needs evolve
- Measurable based on a tangible return on investment
- Flexible allowing for adjustments over time
- Motivational for top achievers and mid-performers due to equal opportunity for reward
- Attainable and clearly articulated goals ensures program engagemen
With budget constraints being a key consideration for marketing managers, HR professionals and sales teams, it is understandable how there is a tendency to work backwards from a set budget. By resisting this inclination, it is possible for reward programs to far exceed their intended goals and significantly contribute to deeper brand loyalty, boost morale and productivity of employees and ensure effective channel management.