Feature Article - March/April 2008

Danger Zone

Are Your Sales Incentives Created in a Vacuum?

By Catherine Eberlein Pfister

In today's business landscape, there is an increasing connection between a company's financial performance and its overall ability to recruit, engage and retain its employees. This continuing series will explore how incentives, recognition and motivation can be effective tools in making those critical connections.

This issue of Premium Incentive Products looks at sales incentive development issues. In coming months, we'll also look at other employee engagement business strategies, including recruiting and retaining talent, how to motivate a multigenerational workforce, and what a global workforce means to incentive development and management.

Danger Zone: Are Your Sales Incentives Created In A Vacuum?

Which of the following best represents your company's current evaluation of its sales incentive programs?

A. It must have worked because we sold $x more of our products.

B. When we evaluated just the impact of the sales incentive, we found a negative ROI.

C. We looked at the impact that our sales incentive program would have on other company operations, then made some investments and adjustments to our infrastructure. As a result we achieved a positive return on investment.