The document discusses the changing perceptions of incentive programs and argues they can be a "necessary evil" when used correctly. It notes that while incentives were once viewed negatively due to administrative burdens and high costs, online platforms have addressed these issues by streamlining management and reducing expenses. When incentive schemes reward overachievement, promote business growth, and help attract and retain top talent, they drive productivity more than straight commission alone. The author believes the next generation of businesses will embrace online cultures and incentives can deliver real financial benefits if they are engaging, add value, increase revenue, and provide longevity in relationships.

1. corporaterewards.co.uk
Incentives are EVIL
Dan Kelly, Sales and Marketing Director, Corporate
Rewards

2. Incentives are EVIL
• Dan Kelly, Sales and Marketing Director at award-winning incentive
recognition and reward, motivation and events agency Corporate
Rewards, presents the changing perceptions of incentive programmes
• “Incentives are EVIL”. This may sound like an extreme view, but you
may be surprised...

3. Opposing views
• Incentive schemes can be divisive, provoking opposing views:
– Those who view them positively and believe in the benefits
– Those who are ambivalent, perhaps even disinterested
– Those who consider incentives to be an unnecessary, timeconsuming, admin-generating evil
• Those in the latter category generally believe that employees
shouldn’t be rewarded for simply doing their jobs; what are they paid
for? Why give them more? What’s wrong with commission?
• And so on...

4. Driving productivity
• Research proves that incentives and rewards increase productivity
more than commission. Why?
– Commission is perceived as a salary extension
– Incentives are viewed as a bonus - recognition for going the
extra mile
• The frequent inclusion of commission in job ads presents it as a part
of a standard package
• Incentives exist to reward over-achievement and therefore drive overachievement!

5. Good & bad
• Poorly executed incentive schemes can create negative feedback
• Getting it right can positively impact your bottom line
• Successful incentive schemes are strategically embraced and
driven from the top
• Love them or loathe them, incentives now play a huge role in today’s
competitive business culture
• Used well, they will:
– promote business growth
– attract and retain the best employees

6. Why incentives?
• Commission is basically cold, hard cash
• ‘Incentive’ and ‘recognition’ are emotive words, triggering:
– Passion
– Accomplishment
– Satisfaction
– Motivation

7. The history
• Historic poor use of incentive schemes has generated negativity
• Most negative feelings date back to early, experimental initiatives
• Drivers of this ‘evil’ image were:
– increased admin
– high costs
– complex arrangements
• These are no longer a part of the incentives world
• In the past three or four years online schemes have facilitated a shift
into genuine business benefits

8. The next generation
• The next business generation will be the internet generation
• The internet is your quickest and most direct route to your staff
• 10 years ago social media hardly featured. Now:
– Facebook has 995million users
– Twitter sees over one billion tweets every three days
– Four million YouTube views take place every day
– Amazon has 75million unique visitors every month.
• It’s why businesses are embracing online culture in every way they
can

9. Why online?
• ‘Switched-on’ businesses are turning to online incentive platforms for:
– Ease of use
– Affordability
– Quick impact
– Taking the ‘evil’ out of incentives
• We recognise this is how the world communicates now
• It’s the driving force behind our own bespoke, easy-to-manage online
platform

10. Online benefits
• Managing incentive schemes online reduces admin through:
– integrated reporting tools
– dashboard reporting
– putting management information at your fingertips
• Performance is easily tracked and rewards are facilitated quickly by:
– online catalogue
– e-vouchers
– prepaid cards
• The upshot is:
– reduction in costs
– no drain on resource
• Only an online system could deliver these benefits quickly and
efficiently, without complex processes

11. EVIL can be good!
• Going online is the ‘good’ approach, negating the ‘evil’ of old
• However sometimes there’s no harm in evil, as long as you know
what it really means...
• Incentives and rewards should
– be Engaging
– add Value
– Increase revenue
– provide Longevity in relationships
• Used correctly, incentives are a necessary evil that deliver £££ to your
bottom line!

12. Find out more
www.corporaterewards.co.uk/blog
@CorpRewards
Connect with corporate-rewards-uk
Call us 0370 405 2020
Let’s start the conversation

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