Dollars and Sense: Understanding Employee Incentive Programs

There is a wealth of information and multitude of blog postings on the Internet that champion the successes and value of employee incentive programs, but very few, actually give the financial-minded decision maker any numbers to take away. I will not write another one of those articles that leaves you asking for proof. One Fortune 500 company’s incentive program yielded a return on investment of nearly $750,000. How’s that for numbers?

The Incentive Research Foundation (IRF), the leader in market research in the incentives industry, conducted a study to see if a Fortune 500 manufacturer and distributor could reach its goals of increasing sales and market share in their key territories.

Their goals:

  • Increase revenues by over 20%, from the previous year
  • Increase Value Added Reseller market share in all territories to a minimum of 30%
  • Increase net operating income by at least 10% of revenue


  • Increased revenues by 32% (exceeded goal by 12%)
  • Increased market share in 9 markets to a level over 30%
  • Increased net operating income by 19% (exceeded goal by 9%)

How did they do it? The employee recognition program selected incentive rewards based on demographic profiles of both the Master Reseller and Value Added Reseller audience. The reseller sought to strive “Top Gun” status to receive awards such as a flight in an F-16 Aircraft and an incentive travel reward that included an 8 day/7 night stay at exclusive Caribbean resort.

Properly designed employee incentive programs can yield amazing results in terms of dollars and cents. Employee incentive programs are the key to increasing employee motivation, loyalty, engagement, and ultimately productivity and sales. The bottom line doesn’t lie.

Total Return On Investment: $747,800

For more information, visit us at

Kristopher Hewkin

Strategic Marketing Manager, JNR Incorporated



Author: JNR Incorporated

JNR Incorporated is a results-based, globally recognized leader that specializes in creating custom travel, meeting, event, prepaid card and merchandise programs that motivate, engage and inspire the employees, customers and channel members of our clients. We have over 30 years of experience working with Fortune 500 companies of many diverse industries. Our programs are tailored to fit the specific needs of marketing, sales, management and human resource professionals. The unique solutions we apply are measurable and proven to increase performance, loyalty and revenues. - See more at:

Leave a Reply

Your email address will not be published.

four × three =