Caribbean or cash
How to select the right incentive

This continues the article on setting up effective employee
incentive programs.
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A large appliance retailer wanted to motivate their
employees to sell more televisions. They announced that the
person selling the most would win a trip for two to the
Caribbean. Sales went up and they thought the program was
a success. However a third party took a look at the results
and saw that comparative sales were up only for a small
percentage of salespeople. Sales were flat for the balance.
Further study showed the sales increases, when compared
to competition, were actually a decrease. What was thought
to be a success was really a failure as the company lost
market share.

The majority of their salespeople were not motivated by a
trip because they could not afford the daycare for their
children while they were away. They obviously had no reason
to want to win the contest. The next year they ran the contest
with an option to take the trip or have a cash bonus. They
had much better results.

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More business by the numbers here,
Incentive programs:
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