Top-performing companies employ non-cash incentive schemes, says US foundation

The Incentive Research Foundation (IRF) claims its latest research found that top performing companies are more likely than average-performing businesses to use non-cash rewards and recognition programmes to reward their sales people (90 per cent), employees (88 per cent) and channel partners (81  per cent). Top performing companies also think about, design, and support their programmes differently. The IRF has released a checklist of best practices for companies on how to reward leading employees.

The foundation surveyed 900 organisations to reveal what the most successful companies do regarding non-cash rewards and recognition, in its new Incentive Benchmarking SurveyMelissa Van Dyke, IRF president, said: “The Incentive Benchmarking Survey revealed a wealth of best practices for human capital investments from truly exceptional companies. To be considered a top performer for this study, companies met benchmarks in revenue, growth, customer ratings and employee ratings. Of the 900 companies reviewed, only 300 organisations made the cut.”

The survey lists 10 tips for companies, in Ten Things Top Performing Companies Do Differently, including

    • Top performing companies have higher payouts. The typical sales person in a top performing company can expect to earn £3,100 in non-cash rewards versus £2,150 in average companies, and employees earn £133 versus £115, respectively. 
    • Top performing companies have a stronger belief in non-cash rewards and recognition. Top performing companies were over 20 per cent more likely to assert that their non-cash reward programmes were effective recruitment, retention, and engagement tools. 
    • Top performing companies have strong executive buy in for non-cash rewards and recognition. The vast majority of top performing companies (93 per cent) reported their executives are strong supporters of non-cash rewards and recognition as a competitive advantage for the organisation. 
    • Top performing companies focus on reach… not exclusivity. While 56 per cent of top performing companies said they prioritise reach for both employee and sales programmes, only 36 per cent and 28 per cent of average companies said so respectively. 

To view the full report, visit the IRF homepage here.