A Reward and Recognition Strategy is a Set of Guiding Principles Which Aligns All Forms of Reward...

7/30/2019 A Reward and Recognition Strategy is a Set of Guiding Principles Which Aligns All Forms of Reward and Recognitio

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A reward and recognition strategy is a set of guiding principles which aligns all forms of reward and

recognition to the business strategy in order to clarify the deal and to motivate and recognise

desired performance and behaviours.

Reward and recognition is concerned with the range of practices an organisation undertakes

(financial and non-financial) to compensate employees, maximise employee engagement and

encourage behaviours that lead to organisational success.

Creating a culture of trust; leveraging the power of peer recognition; and focusing on theenablers and tools that help salespeople reach their potential in an increasingly complex

business environmentthese are all critical parts of the overall picture of motivating a sales

force more effectively.

Some factors may not immediately sound anything like factors that appear in traditionalmotivation studies. They include things like sales enablement and tools, reducing quote

cycle times, getting better documentation, and developing a product that is differentiated

and therefore easier to sell. These are some of the things that actually motivate

salespeopleeven more than sales compensation incentives.

"There are two things that Nortel has never stopped or changed, even through challengingeconomic times. One is our annual sales conference, where we bring our sales team

together, both to interact with each other in a forum setting, but also to do peer

recognition. You get the sales team up there on stage and you reward them in front of their

peers. That is hugely important to them."

"Decreasing the amount of time a salesperson spends on non-sales activities is criticallyimportant to raising overall productivity. Every minute spent by a salesperson verifying

compensation data is one less minute available to meet with customers and close deals."

The second thing Nortel has never changed is what Joannou and his team call their "circle ofexcellence." With this program, he continues, "we take the top 10 percent of our sales force

and treat them to an all-expenses-paid trip to a nice location. One reason we've never cut

that program, despite all of the cost pressures, is because it motivates your best performersto do even better because they want to be a member of this elite group."


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74% of companies running programs believe that they can build a more exciting, memorableprogram around travel and merchandise (non-monetary rewards) than cash. ----Incentive

Federation Survey, 2005.

The most common factors considered in structuring incentive programs: Cost versus

shared result Freshness, uniqueness over time, Perceived value, Ease of administration,

Being fair to everyone, Profitability - Incentive Federation Survey, 2005.


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12 BENEFITS OF STARTING A SALES AWARD &

RECOGNITION PROGRAM FOR YOUR COMPANY


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Businesses from start ups to large corporations can benefit from employee benefit programsdesigned to increase sales, generate referrals, build customer loyalty and improve employeeperformance. Whether you are looking to reward your loyal customers, top sales people ordistributors. If you are still considering whether or not starting a program is right for you, below weare listing the twelve top benefits and features of starting a sales award and recognition program.We are adding to this list monthly. If you would like a complete list or need help starting a program,give us a call at 714-773.1105.

1. UNIFY SALES EFFORTMost successful sales professionals seem to be individuals who focus on their sales goals byseparating themselves from the group. A SAP (Sales Award Program) encourages all your salespeople to unify and work closer together because their individual results and accomplishments aremore visible it seems to raise the efforts of everyone.

2. CONSTANT MOTIVATIONAs the sales manager for your company, the more you can touch each sales person, the more youcan motivate them to sell. Unfortunately, the daily role of a sales manager today is filled with agrowing number of management and personnel duties. So you simply dont have time to work witheach person individually as much as you would like. So an SAP is a visual motivational tool to helpyou keep the pressure on, to strive for more productivity.

3. ACCOMPLISH SPECIFIC GOALS -Every department has annual goals. Weve found that if you ask most sales people what these arethroughout the year, less than 10% can actually tell you what they are. And if they are not sure whatthese goals are, how are you as the sales manager or business owner going hold them accountableor accomplish them? Our programs can be structured around achieving one or all of yourdepartmental goals.

4. RECOGNIZE GROUP EFFORTSNothing encourages positive behavior more than being recognized for doing something good. Eventhough in most sales departments, 80% of the sales come from 20% of the staff, a vital key inbuilding the sales activity of your 20% is making them a part of achievement and/or total results.This builds confidence, and confidence leads to more sales.

5. REWARD INDIVIDUAL EFFORTSPsychologists tell us time and time again how the more you reward individual results, the moreoften that person will tend to replicate that activity. Over time, if each sales person can replicate aspecific activity, which leads to a sale or positive sales function, the results will only be higherproductivity for your company.

6. INCREASE SALES WITHOUT ONGOING ADDITIONAL EXPENSEMost companies find some way of trying to motivate their sales people throughout the year. If you

were to look at the total cost of these last minute ideas, they often seem to add up to a significantamount of money. Not to mention that most of these motivational efforts are not accountable. If youare using an incentive that you cant verify is fruitful, you are wasting money. How many more newbusiness sales do you have to make to pay for this? One company we work with says that theyhave to generate $6 in new business sales, for each $1 the sales department spends (just to breakeven).

7. PROVIDES A FORMAT FOR LOW-COST INCENTIVESEach quarter, do you take the sales team out to lunch or dinner? Do you give everyone theafternoon off when a goal is met? Are you rewarding the proper activity? Once again, how muchmoney are you spending? While money is a very positive motivator, simple recognition is every bitas good, and in some cases more effective. An SAP encourages the use of low-cost incentives to

entice your sales people to sell more. A small $1 item presented in the right way can be moremotivating that a $100+ gift will. Remember, as a sales manager your goals are going to be met by


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the results of the total team, not individual results.

8. IMPROVE MORALE OF SALES TEAM AND ALL EMPLOYEESWe recommend sales people attend as many sales and motivational seminars as possible. Theseseminars only provide hype, but if a sales person feels this energy often enough, it really can make

a difference. An SAP is a great tool for continually motivating your sales staff and all your otheremployees as well. By presenting the program to all your employees, they will tend to work togethermore effectively. Breaking down walls, which are often built between departments, leads to higherproduction and lower operation costs. Every successful company weve ever worked with has foundways to get their people to work better together.

9. FORMAT FOR TEACHING NEW SALES TOOLS, TECHNIQUES ANDMETHODSIf youve ever had trouble teaching your sales people new techniques or getting them to try newmethods, make it part of your SAP. This way, the learning tool will have higher visibility andaccountability. Your program can be created around specific educational themes and track theiroverall understanding and usage.

10. ENCOURAGE NEW IDEAS AND SUGGESTIONSHow would you like to create an open forum for sales people making suggestions, which could leadto more sales? Almost every sales department weve worked with whom we have surveyed inmeetings, answers yes to the question, and Do you know of ways your company can sell more?The answer is almost always yes. The reasons for not providing this information are numerous. Ifyour want to make your sales people partners to your goals (increasing sales), give them a forum orprocess for opening up and giving you their creative ideas.

11. COMMUNICATE WITH THE SALES TEAMPart of an SAP is monitoring regular results and displaying or posting them on a consistent basis.Once sales people get the feel for this format, they will make checking the results part of theirregular routine. So, instead of having to make individual contact with each individual sales personwhen you want to communicate with, make the communication part of the program.

12. IMPROVES ACCOUNTABILITYThe single key to any program being successful is accountability, results you as the sales managercan see, and results your sales people will see. Particularly in sales, no one wants to be beat byanother sales person. So by creating another way of making your sales staff accountable for alltheir sales goals and activities, the main benefactor in the results will be your company. The moreyou can monitor activities ... the more successful you will be. Its just that simple!

Salesforce will be awarding badges with each seasonal release, and overall winners once a year.

There are badges for "MVP Ideas", "Top Ideas", "MVP Answers", and "Top Answers". The company lists

the criteria as:

Badge: MVP Ideas

Criteria: Top 5 IdeaExchange contributors with the most votes received for Ideas posted during reward cycle (June

May)

Each recipient of this badge will receive a FREE pass to Dreamforce as a token of gratitude for all the hard work they

put into helping make the community successful!


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Badge: Top Ideas

Criteria: Top 20 IdeaExchange contributors with the most votes received for Ideas posted during the

seasonal release awards cycle

Badge: MVP Answers

Criteria: Top 5 Answers contributors with the most comments submitted during the reward cycle (June

May).

Each recipient of this badge will receive a FREE pass to Dreamforce as a token of gratitude for all the hard

work they put into helping make the community successful!

Badge: Top Answers

Criteria: Top 20 Answers contributors with the most comments submitted during the seasonal release

awards cycle

Recognition Rewards can help create the right employee - management team environment. An atmosphere that is

encouraging and favourable to achieving the contributions and efforts you need!

Recognition Rewards accomplishes this by offering two main services to our customers:

Awards & Rewards - A wide selection of traditional and unique Awards & Gifts that fit all price ranges and budgets.We offer products that say ~ Thanks .. for a job well done! See our .."Product Selection Menu" in the left column.

Support Services - Various books, research articles, case studies & strategies along with our surveys, programs,workshops, training and other services that support the development and implementation of effective recognitionprograms. See our .. "What We Do" icon in the upper right.

You should recognize your best people! Take a few moments to reflect on the many successes of your company orassociation. Are there people you should be recognizing? We think there are!

Reader's Stories of

Recognition SuccessWe can never have enough ideas or examples of what works! Here, readers share some of theirsuccesses.

Bravo

"We developed a BRAVO BALLOON with gifts and cards are placed in the basket ofthe balloon. Staff can choose something from the balloon to give to a co-worker tothank them or recognize them for a job well done. We located the BALLOON in acentral location in the office, hanging from the ceiling and visible to all who walk by.It has been well received and we track the use by asking people to sign a trackingsheet with the gift they chose, the recipient and the reason. We have left thesigning out as optional but most seem to have not concerns with filling out thesheet. Gift values range from $5.00 to $10.00 and include gift coupons for coffee,music CD's and health food, as well as pens and coffee mugs. We have a suggestionbox placed near the balloon to solicit ideas for other gifts." Heather M. Rice, RFT,

Forest Health Officer, Vernon, BC
http://www.recognitionrewards.com/what_we_do.htmhttp://www.recognitionrewards.com/what_we_do.htmhttp://www.recognitionrewards.com/what_we_do.htmhttp://www.recognitionrewards.com/what_we_do.htm


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Recognition Rock Star

"A Supervisor within our building distributes rocks as awards. The

rocks can range in size from a tennis ball to a football, but each is

hand-painted with "YOU ROCK!" , "You're a ROCKSTAR!", etc.

Along with being free, and very well received by the recipients, they also serve as a great

conversation piece sitting on a desk, and have encouraged other colleagues to adapt similar ideas,

thereby increasing the level of overall recognition." Jeff Leining, U.S. Bank

Calendar of Fun

"Our "Have Fun" team ("Have Fun" is a Core Strategy here) produces a calendar every month that

shows all the fun events happening: ie Halloween Party and dress up this month, plus any lunch and

learns or charity events happening within the company. It also shows all weird and wonderful

national celebration days. For instance, did you know that yesterday was National Bring your Teddy

Bear to work day? One of the employees dressed his 3 month old in the cutest white teddy bear

costume, took pictures and emailed them to all of us!"

Deborah Peck, SunTech Optics

Written Treasures

"I have a note that my director wrote from 10 years ago. It always makes me feel good to go back

and read it when work is getting me down. Last month I gave each of my 98 employees a wooden

box with a letter inside encouraging them to use the box as a treasure box - a treasure of kind words,

thank you cards, words of encouragement or recognition so that they too could go back and read

them."

Kathy Ehlers, BA, RRT, Director of Respiratory Care, Forrest General Hospital

Peer Recognition Book

Patricia Marsh, Manager, Ministry of the Environment writes: "When I was at your course [Strategies

for Recognition Programs that Work] one of the participants (BC Lottery) told us about a simple,

inexpensive way their group did recognition - I adopted it here, and the feedback is amazing -

people love it !! I just got a ringed book (about $4.00), started with my own entry, and passed them

out - six books, six hundred staff. I call it "You're a STAR" - on the inside cover is the message -

Someone thinks you're a STAR - the person writes the name of the person they are thanking, the

date, and signs their names. The idea is to keep the book moving."

And this is what one recipient had to say: "That little book you are sending around asking people towrite something nice about someone and forward it along is a wonderful idea! It made my day!


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Thanks so much for reminding us to stop and say thank you once in awhile, it makes all thedifference in the world."

Game to ReinforceRecognition

Cheryl Miller of Wells Fargo created the

game, Race for Recognition (see photo),

with the help of her art and design group.

Wells Fargo managers played this

western-themed board game as a way to

reinforce both basic recognition principles

and Wells Fargo's recognition programs.

Nicely done!

Manager-Driven Efforts Succeed

"I have been sharing your weekly tips with my peers within my Division. We have been focusing on

improving our overall employee satisfaction for recognizing when deserved and your suggestions

have been helpful. Over the last few months we have seen a positive increase in our satisfaction in

this area and I would appreciate it if you continue to provide these tips in order for me to share."

Linda Kendrick, Compliance Integration Manager, VSP

Team Appreciation

"Recently, our Human Resources team had a lengthy discussion regarding the Department's dress

code; specifically, appropriate hosiery and footwear during the summer months. The following week,

I presented my staff with some flashy, fun socks to thank them for being professional from "head to

toe." Our HR team works incredibly well together to serve the 2300 employees of the Nebraska

Department of Correctional Services. We don't always feel that we're appreciated by the masses, but

we always show our appreciation for each other." Linda Bos, Recruitment and Retention Coordinator,

Nebraska Dept. of Correctional Services

Balanced Opportunity forRecognition

To ensure that all members of the sales team

have the opportunity to be awarded, we have

instituted the Director's Award. Each quarter, I

present the award (a director's chair pictured in

the photo) to an outstanding individual whose

work supports the efforts of the sales team.

Doug Purcell


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Senior Director, Federal Service Sales Worldwide

Cisco Systems

Small Business Recognition Idea

"My company is relatively small with 6 full time employees. In the summer I give the staff an extraday off before a long weekend to make a 4 day weekend. We also have a staff barbeque every

Friday. Gives us a chance to sit together, eat and chat. Seems to work well with everyone always

participating." Rick Clarke, President, R&D Corporate Services Limited

Simple, But Effective

The IT Recognition Committee at the British

Columbia Lottery Corporation created arecognition wall. As part of this wall they put up a

big whiteboard and some dry erase pens. They

use it to write notes of praise and appreciation to

the team and to individuals. The whiteboard is

used by both staff and managers and often

includes project milestones, thanks for personal

help, and congratulatory type stuff. They erase

items after about a week so that the notes are

fresh and interesting. This keeps people coming

back to read what has been written.

The bricks that appear at the bottom of the wall each have a plaque that commemorates an ITmilestone. These bricks are laid in simple celebratory ceremonies.

Real Results!

"As a new sales manager, I found that by applying the principals in Make Their Day! I have been

able to create a healthy, success driven culture for my team. Since reading this book and attending

the workshop my team has exceeded sales goals every quarter. Regional Sales Director

How to Motivate the Sales Force


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There are three critical elements to motivate a successful and high performance professional salesforce. These elements are Appreciation, Recognition, and Compensation. It is necessary to provideall three ingredients with integrity.

Appreciation

Giving Recognition and Compensation is not the same as demonstrating Appreciation. Recognitionimplies personal performance. Appreciation requires a mutual understanding of the value of thepersonal performance as a contribution to the greater good of the organization. The salesprofessional is just one important participant. All of the employees and roles in the organizationcontribute to the success of the organization. To effectively demonstrate appreciation, it is necessaryto understand and communicate how the roles of the various departments and functions worktogether, and the impact of each on another.

Once appreciation is measured in terms of benefit to the organization, then it becomes easy toidentify how to express appreciation. Quite often, this expression of appreciation is bestowed in theform of training and development. The training is intended to help the sales associate sustain andexpand on successful performance by providing a platform to learn more about the product, process,

integration, or techniques. Appreciation may be presented in the form of tools that enable andempower the sales associate with hardware, software, or knowledge. Appreciation acknowledgescontribution to the organization and empowers continued success.

The contributions of a sales associate may be worthy of demonstrating appreciation, even whenpersonal attainment has not achieved the necessary levels for recognition or compensation.

Recognition

Give recognition for the attainment of personal goals. Recognition may be shared in the form ofawards, certificates, or personal accolades. It may also be provided in the form of writtencommunication. It is important to give team or group recognition when appropriate, just as it isimportant to provide individual recognition when appropriate. Recognition should be fair, balanced,

and earned. When it is earned, it should not be forgotten.

Verbal recognition is a nice gesture, but not a lasting one. If the contributions of the sales associatehave had a significant benefit to the organization, and if the associate has achieved personalcommitments, give lasting recognition in the form of a certificate or award. An award is a lastingreminder to the recipient, and to those individuals who may also want to receive one, that theorganization recognizes and appreciates personal achievement.

Compensation

The professional sales associate is measured by compensation to the organization in the form ofrevenue. Is it a surprise that the sales associate measures the performance of the organization to the

sales associate in the same manner? Commission and bonus plans should be clear and easilyunderstood. Commission, as pay for performance, should be realistic, even when it is treated as a'stretch goal'.

Some sales cycles and customers take longer to close. Does the company strategy or compensationplan change more frequently than the product offering? How significant are these changes, and howwell are they understood? Are compensation plans based on history, opportunity, the sales pipeline,or an unattainable pipe dream? Does the plan reward the team as a percentage of individual effort,thereby encouraging reciprocal support? Commission plans should be based on an allocation, asopposed to a budget. Commission should be an appropriated investment as incentive for teambuilding and individual compensation.

Putting It All Together


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Is your sales force treated as the pipeline to profit, or as a necessary evil? Beware if your competitorsvalue your top performers more than you do. Loyal customers are just as likely to be loyal to a trustedsales associate as they are likely to be loyal to a company or brand. Cultivate, educate and motivateyour sales force to nurture a high performance revenue generating engine.

Use a balanced approach of Appreciation, Recognition and Compensation to acknowledge, reward

and motivate the sales force as an investment to growing revenue.

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