CORPORATE INCENTIVE AWARD PROGRAMS |employee motivation program|corporate incentive program|corporate incentive gifts|employee recognition idea Why and How ROI can Smoothen Corporate Incentive Award Program ManagementFor businesses to be competitive, people working for these respective companies must strive to exceed; replace self-indulgence with loyalty and allegiance and to do the extra-ordinary. But they will do that only if these businesses in question can provide them with enough appreciation for all that work done and results achieved -- appreciation that they find compelling enough. Even before anyone even thinks of initiating any massive program to do just that -- it is, perhaps, critical to know what motivates people and then implement a very cost-effective but still unforgettable corporate Incentive award program on your company’s behalf. Like all other things in business go, you’d need to pay attention to something very critical to the successful implementation and justification of the said program -- The return on your Investment (ROI). The ROI alone can justify the move and prepare you to be in a position to prove the efficacy of your very successful, but proof- worthy corporate incentive award program .The reason why ROI is stressed so much is because it is the only number that is tangible and is measurable. Other wise the increase in the morale, the customer/vendor/employee goodwill are all intangible assets the program seemed to have successfully implanted -- nevertheless, it can’t be measured. So, how can you ensure that the program will not end up costing you more than its worth, if it weren’t for the ROI? So, how exactly do we about quantifying the corporate incentive award program at your company? Firstly, you will need a well-planned and structured program that accounts for not only what you’ll gain from the program, but also what you’ll need to spend for the overall implementation of the program. A major part of your work is done if you can clearly define objectives and see what goes out and what comes in --- like you should be clearly ascertain your delineating costs, results, and benefits. The Return on your Investment can only be two types -- measurable or immeasurable. Once you determine which type of program you’ll be implementing, you can easily calculate the return on investment. We will not delve into the measurable part of the ROI because it is easy to do so. Usually you would be able to see this kind of Return of Investment (ROI) on resulted oriented processes like sales and marketing where it is relatively easy to have systems in place and measure the ROI. However, it the immeasurable part of the ROI that the HR managers or small business owners have to contend with and this is what we will strive to arrive at. Folks at incentivesmarketplace.com have come up with a beautiful to calculate a relatively better ROI than random guessing, at their website and it is better quoted as is: “You may have come up with a great incentive program but the ROI is difficult to determine with concrete numbers. A good example of this type of program is years of service award as well as any program not involving sales. And since you won’t be generating revenue or measurable cost savings through a program like this, the mathematics become a little more ambiguous. The formula to follow in this type of scenario is to divide the participants/recipients annual salary by the number of months the program is running. Then determine your payout rate based on the following suggested percentages: 6-8% of participant income for shorter programs (1-5 months) 3-5% of participant income for longer programs (6-24 months) Coming up with clear, concise figures will go a long way in selling your incentive award program and garnering approval from the executive element in your company. “ Corporate Incentive Award Programs are indeed very vital as your company’s employee retention strategy. However, without measuring the ROI and arming yourself with it, it would be next to impossible to be able to arrive at a sound, wall-backed justification for the implementation of the same. |
