Last month the Incentive Research Foundation (IRF) released a new study showing how “Top” manufacturing firms and “Average” companies differ in using non-cash incentive and rewards to engage their employees, partners and customers. Two findings jump out at us:
Top performers are 3½ times more likely to structure programs with a goal of recognizing and rewarding all participants. Average manufactures, on the other hand, are 3½ times more likely to only reward their top performing participants.
Executives at top companies are more supportive of the programs. Leadership at top manufacturers are twice as likely to view their program as a competitive advantage in the market, 27% more likely to consider their programs effective recruitment tools and 44% more likely to say their program is a critical tool to manage the performance of the company.
These findings aren’t just exclusive to manufacturers. In two other IRF studies, Financial Services and Technology industries discovered similar trends in program structure and executive support.
In all these studies, top performers had both customer and employee satisfaction rates of about 90% or more, annual growth or customer acquisition rates higher than 5% and less than a 5% yearly turn over among high performing employees.
Click on the image below to view the study.
If you don’t have time to dive into the whole study, Matt Alderton of Incentive Magazine did a great job of providing a short summary of the highlights.
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