Cash Incentive vs. Vacation Incentive (Video Below):
We all know cash is king, right? We also know the most popular solution to motivate sales teams into higher levels of performance is to incentivize them with cash. Whether it comes in the form of a commission or if it’s added as a cash bonus for their increased performance, it’s the most widely used technique. Therefore, it’s likely you’re already employing this incentive model with your sales force.
Interestingly, if given a choice, most people would voluntarily select to receive cash. This makes financial sense: I mean, we’ve all got bills to pay, right? With a cash incentive, people are more likely to think about it like compensation. They take that nice bonus payout, turn around, and promptly apply it to something necessary (but not exciting). Using it to pay bills, buy groceries, gas, boring stuff. Purchases with zero lasting memory or significance.
Anecdotal evidence suggests non-cash rewards deliver a greater organizational benefit. Here’s why vacations motivate employees better than cash.
Travel, it turns out, is the most effective incentive of all. According to a study by Site International Foundation, 96% of employees say they are motivated by travel incentives, and 72% who earn the vacation reward say they feel increased loyalty to the company.
Travel is fun, exciting and above all, memorable. A vacation incentive is something the whole family can get behind, as well as enjoy in the experience. See below a video of top sales rep, Trever Blanc, winning his second vacation of the year.
Trever Blanc, after winning two separate contests, was the top sales rep for Sherlock Heating & Air in 2017. The first contest he won was a Destination Motivation cruise to Mexico. His second contest he won was an all expense paid trip to Hawaii through the Destination Motivation Condo Voucher. Congrats Trever on your well deserved vacations. Contact us today to learn how to put together successful incentive programs.