Show Recap - Influence Insiders & Incentives

Both episodes are available below. The Influence Insider  panelists on twitter: @annbares @frankroche @heathermargolis @leapcomp @toddhanson @incentintel

Taking a cue from Santa - the manager of the world's largest incentive program - Influence Insiders took on the topic of incentives yesterday in our 2nd monthly blogtalkradio show.  We had a pretty full house and some interesting conversation.  

I won't recap everything but the key points I took away were:

• Even with the ongoing negative press incentives get in today's business environment the panel's experience is that employers and marketers are not cutting back on incentives.  They are however, (and I like this) taking more time to do them right.  The opinion from the group is that companies are working harder to make sure that incentives are tied to business issues, are designed in a way to reduce unintended consequences and are adjusting and monitoring their incentive spend. 
   
• @toddhanson mentioned that the negative press on "extravagant" incentives has moved clients to look at awards that don't come across as too extravagant and are looking at other options such as charity to avoid negative impressions.
   
• @frankroche highlighted that base salary has been frozen and that raises are harder to come buy.  This is causing an increase in the use of variable pay.  From his perspective, this is requiring a greater degree of communication to explain how/why the changes are occuring for employees.  In addition, many employees who are new to a variable pay environment didn't understand that variable means variable.  Extra communication and training were needed to help managers explain that previous payouts are not guaranteed and the company was serious when they said "variable."
   
• @heathermargolis discussed the use of "marketing funds" as an incentive option for channel partners (co-op money, help with advertising, etc.)  That brought up the question of what is the analog to marketing development funds in the employee world?
  
  Should employees earn training, more work, more challenge?  Can additional responsibility be a good incentive for top performers?
   
• @leapcomp (Juilien Dionne) mentioned that there is more focus on MBOs in incentive programs.  However, @heathermargolis warned that in some instances, people who are too focused on their own MBOs may be roadblocks to others trying to get THEIR MBOs accomplished.
   
• We touched on Alfie Kohn and Dan Pink and intrinsic vs. extrinsic awards and caller "Andy" brought up the fact that the research cited has been based on children and other school-aged participants and in his experience, not really believed by many business practitioners.

And we closed out the program talking about how incentive programs, no matter how well designed need to be managed.  

No program can be designed, launched and operated without someone at the controls.  

Too often managers believe the program is a proxy for their active participation and management.  The key is to pay attention, monitor and adjust.

Thanks to all who listened - and will listen.  All of us at Influence Insiders appreciate your participation.  Don't forget to "favorite" us on the blogtalk radio site and to tell your friends. 

If there is a topic you'd like us to hit on let us know in the comments below.

That's a wrap!

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Comments

[George A Guajardo]

That first line gave me a great laugh! I never thought as Santa as the manager of the world's largest incentive program, but you are correct (as usual)!

Question: How do you assess that incentive program? Nightmare!

[Paul Hebert]

Assessing the program is easy - track incarcerations on a 12-18 year rolling average.

Program ain't doing so well I'm guessing!

[Scott Crandall]

Paul --- I can tell you an incentive that would appeal to me: match cash or other direct awards w/ donation made in my name to a charity of my choice.

I think, besides the direct advantages, this might also have some interesting tax advantages too. Plus, it would help alleviate the "too much" fears raised by the "too much" that was doled out to bankers, brokers, CEOs and other high flyers that came crashing down last year.

[Paul Hebert]

I agree and as Todd mentioned on the show - it is something that is gaining in popularity - especially with the focus on social responsibility now.