OK – here’s the deal: You want to create an incentive program to reward employees, sales people, channel partners or customers. You want to make sure they take part in the program. More importantly, you want to make sure they achieve the goals of your program (less employee turnover, improved morale, increased sales, better customer loyalty). Participants want to know what they need to do – and what reward they will get as an incentive. So why complicate things?
There is one major rule in setting up an incentive program – simplicity. The more complicated you make your program, the lower your participation rates – that’s a fact. And you will achieve the opposite of your goals – meaning, it will not incentivize anyone to achieve the goals you set out.
Keep it simple. Simple rules are easy to follow. Simple rules are easy to enforce. Too many times we have been asked to set up an incentive program that is so confusing not even the company program manager can figure out how it works. So, in the words of Henry David Thoreau, “Simplify, simplify, simplify.” Or, better yet, as Woody from ‘Cheers’ said, “Why did he say it three times?”
Simplify – and your incentive program will multiply.