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MAY 20, 2024

Top 3 mistakes companies make when investing in incentive programs

Let’s talk about maximizing ROI when it comes to your employee incentive programs. When you think about it, seems expected that your investment in incentivizing your workforce is going to pay off, but we have to break it to you – not always the case. What mistakes lead to a failed investment into an incentive program?

  • The first mistake companies make when they’re creating incentive programs, especially in retail environments, is creating a program that they will use for the whole retail network. Every retail environment is different – depends on the country, city, work ethic and preferences, team and individual efforts at a workplace. So, naturally you have to adjust your incentive programs to the people you’re incentivizing.
  • Next mistake is focusing solely on monetary or non-monetary incentives. It’s important to have a combination of both. For your frontline employees, it’s important that they feel like a part of your brand so they can represent it and sell your products. In that way, education and communication with your retail network is key. How are they going to recommend your product if they don’t know anything about it? Also, nobody wants to put in an extra effort for free. So monetary incentives are non-negotiable, the only thing for a debate is which way will you distribute it – vouchers/gift cards, bonuses and payments etc.
  • And finally, closing the TOP 3 mistakes contest with the worst of all mistakes companies make when they’re implementing incentive program for their employees: Not. Tracking. Progress.

Do we need to say more?