WHY MERCHANDISE INCENTIVES WORK.

Incentive and recognition programs don’t motivate people, motivation comes from within and individuals do things for their own reasons. What an incentive program does is create an environment in which people motivate themselves.

Sales Incentives

Motivational research has shown that people tend to become "income adjusted." They know how much cash they need to maintain their desired lifestyle and work enough to keep that level. The best example of this is the commissioned salesperson. Theoretically he or she could have an uncapped commission plan which ultimately represents an unlimited income potential. What normally happens however is that the commissioned salesperson will sell enough to maintain their usual living standard and nothing more. The opportunity to earn additional cash has no further motivational value.

Employee Incentives

In the case of non-commissioned employees, individuals may be motivated to "do more" or "perform better" with cash incentives because they do not have an open-ended compensation plan and less opportunity to become income adjusted. However, in our economy, cash and higher pay are expected. As long as a person considers his or her performance adequate and competent, an annual raise and/or cash bonuses are expected. Cash is not considered a reward. Cash is a PAYMENT even when presented as an incentive program award. The attitude is: " I did what you wanted and you paid me for it." Plus cash incentives quickly disappear into the family budget; the reward aspect forgotten, the income expectation reinforced.

Merchandise incentives overcome the "income adjusted" barriers of salespersons and the "paid for the job done" attitude of non-sales people. They present an opportunity to earn something that might normally be considered unattainable or an unjustified expense. They are a true reward for a special achievement. Merchandise incentives also satisfy psychological needs of recognition, ego enhancement and pride. Unlike cash, merchandise awards are tangible, they can be talked about and they serve as long-lasting reminders of an outstanding performance.

If your clients want more from their employees, present them with the option of using a merchandise incentive program. For more helpful merchandise incentive justification to share with your clients, request samples of the PFI "Take Aim With Incentive Merchandise" brochure.

To order quantities, contact the sales department at 1-800-AWARDS1 or Sales@spihq.com

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