When companies aspire for more growth and aim to keep their valued employees happy, they use various management strategies. One promising approach is the implementation of an incentive program.
This employee rewards agenda hopes to boost morale, give birth to more team players, and instill a sense of ownership. These elements lead to a happier work environment, satisfied clients, and, ultimately, more profits for the business.
You reap what you sow, as they said. However, running an incentive program is easier said than done. The task requires accuracy and consistency for it to become efficient.
Here’s how a company with a good management style tracks and measures its incentive programs.
Re-Assessing KPI Objectives
The first step to tracking and measuring the effectiveness of an employee rewards program is going granular with the operation’s KPI objectives. Bonus templates honed to suit your industry can make your job easy, but it’s best to modify them to meet what you are trying to achieve.
Remind yourself of the company’s goals or challenges and what are the metrics that have a direct impact on these objectives. You must also consider creating a fair and level playing field in structuring the incentive program.
Identify Factors That Result In Performance Upturn
There will be a time when there’s a significant increase in sales, and it’s tempting to conclude that it is because of the incentive program. But for the sake of accuracy, you should check other factors that could have caused a great spike in revenue.
Some of these elements include an increased marketing budget, a trend outbreak, or seasonal factors. With all these parts in check, you can create a flexible baseline and a sound structure that accurately reflects the success of your company’s incentive program.
Set Your System To Track Multiple Touchpoints
Tracking multiple touchpoints is crucial in measuring the success of every campaign. Whether you’re trying to understand your target audience or measuring the strength of your new marketing strategies, you shouldn’t downplay the numbers that go with it, particularly if it has something to do with the customer’s engagement.
These touchpoints may include click-through rates, response rates, lead sign-up, and conversion. You may also track bounce rates and include them in your incentive program’s KPIs to enhance the quality of outreach campaigns. This activity of tracking touchpoints should paint a sound glide path to a more successful campaign.
Run The Incentive Campaign For 12 Months And Review
Do not just announce the beginning of an employee rewards agenda and hope it’ll walk on its own. That’s a bad management style, wasting resources and letting good opportunities pass. Someone must be in charge of the entire project and ensure its success. Use automated tracking software from trusted platforms like Plentive to save time.
Consistently monitor and hold recognition activities to keep the spirit of incentive programs alive. It’s where operation heroes rise to the occasion, and every competitive employee should know the person to beat. Use Kudoboard and their content cards to drive employee happiness in milestones like these. Run the campaign for at least twelve months, which is sufficient time to gather data for decision-making.
Calculate Costs
There are many motivations for rolling out an employee incentive program. But most of the time, it ultimately leads to the goal of a significant boost in sales and revenue. The way to understand if it’s worth running the incentive program is by calculating the incentive program’s financial ROI.
Business owners or the accounting department must keep records of the budget figures and expenditures on design, communication, workforce, data analysis, unforeseen costs, and more. Also include the benefit in kind taxation, which always comes in any incentive program.
Final Words
With the ROI and the changes in the work environment compared to the pre-incentive program rollout, you should be able to tell whether the activity is successful. Did the company enjoy a 900% ROI compared to last year’s? Are the employees more engaged than they were before? By tracking and measuring employee incentive programs, you’ll have a clearer picture of performance trends and make sounder decisions on the company’s future.
