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For What It’s Worth –
How Much Should I Spend on a Company Incentive Program?
The question of budget is a very important issue that should be factored in to the initial planning stages by those involved with creating or planning any company incentive program. There are,
obviously, implications for going too far to the extreme on either end of the budget spectrum. If you spend too much, then you create an expectation that may be difficult or impossible to maintain. If
you spend too little, the company incentive program may not be well-received, nor will it engender motivation or competition. Balance is the key, and how much you spend relates directly to the type of
company incentive program you create.
Are you planning a short-term (close-ended) or ongoing (open-ended) company incentive program?
For a short-term program, you can decide on a budget at the onset which will simplify matters for both the type of rewards you choose and for accounting at the end of the program. This type of
program works best in situations where you have top performers competing directly against each other.
For an ongoing program you’ll need to build in budgetary constraints, but this type will prove to have a higher return on investment. Although ongoing programs are more challenging to administer,
since tabulation or accounting can’t be completed until you have “winners” or the program finally ends, they have been shown to be more motivating and thus more successful.
Will there be a return on investment?
If you’re planning to spend more for an open-ended program, what will the ROI be? Keep in mind that more frequent rewards can effectively sustain long-term interest and focus on your company
incentive program.
Smaller budget doesn’t necessarily mean lesser reward
A tight budget doesn’t necessarily have to be restrictive. By enlisting some creative thinking from members within the company, you can garner ideas for less expensive gifts that are still suitable
and enjoyable.
Don’t try to be grand just to impress or appease
While it’s certainly exciting to offer a large vacation getaway or new car, something as simple as tickets to a big sporting event or local concert, a day trip for a family to a nearby amusement
park, a trip to the spa, even free movie tickets or DVD rentals for a month could prove to be effective incentives.
It’s always better to give
The most rewarding aspect of any company incentive program is that you’re not only perceived as a generous employer, you also create positive feelings and general goodwill and spirit within the
company while fostering healthy relationships with your clients and employees.
Incentives Marketplace is a performance improvement company devoted to providing clients with a single source for high quality, affordable incentives designed to achieve business goals.
Contact us today with your specific needs and put our incentive programs and experienced staff to work for you! Call 800-934-5474 or send e-mail to: Info@IncentivesMarketplace.com.
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