From incentive program design to goals to budgeting processes, top performing manufacturing firms are taking a different approach than their average performing counterparts.
(PRWEB) August 29, 2019
According to a new IRF study, manufacturing executives believe in the power of non-cash incentives and rewards. A recent survey revealed that executives at top performing manufacturing firms are more than twice as likely as those at average performing firms to regard their reward and recognition programs as a competitive advantage.
The third 2019 release in the IRF’s Top Performer Studies signature series, What Top Performing Manufacturing Companies Do Differently for Incentives and Rewards, identifies the non-cash rewards strategies and tactics used by top performing manufacturing companies. The study also provides benchmarks and best practices to help technology companies design effective non-cash rewards programs.
“The IRF’s latest Top Performer Study revealed notable differences between how top performing and average performing manufacturing companies design and administer their incentive programs,” said Andy Schwarz, VP of Communications, IRF. “From incentive program design to goals to budgeting processes, top performing manufacturing firms are taking a different approach than their average performing counterparts.”
What Top Performing Manufacturing Companies Do Differently for Incentives and Rewards summarizes findings from data collected across multiple manufacturing firms and compares the results of top performing manufacturing firms to those of average performing manufacturing firms. The report first presents key overall findings, then drills down to results for sales reward programs, channel partner reward programs, and employee reward programs.
Insights from the What Top Performing Manufacturing Companies Do Differently for Incentives and Rewards include:
- Top performing manufacturing firms are three and a half times more likely to structure programs with the goal of each participant receiving recognition or a reward.
- Awards points is the most used reward type used by top performing manufacturing firms, with 87% of top performers using award points.
- Average performing manufacturing firms use gift cards and merchandise (both at 69%) at higher rates than top performers.
- For sales incentive programs, top performing manufacturing firms calculate 7.3% of participant income as appropriate annual spend for non-cash rewards and recognition.
- Sales incentive programs at top performing manufacturing firms were more likely than those at average performing firms to use financial outcome metrics as incentive trip qualifiers (34% more likely) and as award points, gift cards, and merchandise qualifiers (44% more likely).
- Channel partner incentive programs at top performing manufacturing firms were nearly three times more likely as those at average performing firms to award a variable number of trip winners based on salesforce performance.
- Program owners at top performing manufacturing firms estimated that 27% of employees would earn non-cash rewards that year (compared to 32% at average performing firms).
To download a copy of the full study and white paper, please visit http://theirf.org/research/what-top-performing-manufacturing-companies-do-differently-for-incentives-and-rewards/2688/.
About the IRF:
The Incentive Research Foundation (TheIRF.org) funds and promotes research to advance the science and enhance the awareness and appropriate application of motivation and incentives in business and industry globally. The goal is to increase the understanding, effective use, and resultant benefits of incentives to businesses that currently use incentives and others interested in improved performance.