Caribbean or cash How to select the right incentive
This continues the article on setting up effective employee incentive programs. Click here to go to the main page.
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.