Recently I saw a post in one of my Linkedin Groups about travel incentives that made me embarassed for my industry. Which group and the author isn't important. What is important is the description of the program inclusions that made me go "huh?"
Here's the set up.
Client wanted to cut incentive travel program budget from $600K to $375K. Incentive designer/Planner presented a $1.6 million budget with busines case rationale that the new program/budget would drive business to the next level. The client bought the $1.6 million program and sales went way up. Sales were so good the CEO of the client company held a company-wide celebration that (to quote the post)...
"that included a video broadcast of the sales team, from their incentive travel destination, telling those employees how much they appreciated being able to exceed sales and margin objectives 'due to your support'.
The presentation concluded with the Senior Vice President telling the employees, 'No, we can't all be on that trip, but we are all celebrating growth in our business while our competition is meeting to try and figure out who to lay-off".
I'll let you read that again.
Here is one thing you can count on...
You Will Never Get That Recommendation From Us
I bring this to your attention for two reasons.
Reason One:
IMHO - It's a terrible idea.
We would never recommend that the sales people who earned a trip to some great travel location send a "video message" back home to say thanks for the support. It's one thing to send video messages back from the war - quite another to film 50 tanned, sunglassed, half-baked sales people toasting the folks back home with a 48 oz Hurricane in a logo-identified souvenier glass from Tropical Tommy's Bar, Grille and Tire Shop on some exotic island.
I'm pretty sure all the "little people" back home know they contributed to the sales person earning that trip. Some of them may even be a little happy they earned it. Some, not so much. Sending this message - from the trip participants back home - strikes me as a bit tasteless and elitest.
Now that's my opinion - and why you'll never see that as a recommendation from us.
However, we might recommend...
- Each sales person send a personal, handwritten note outlining specifically what that individual did to assist that sales person, and the company, hit their goal. Better yet - make it from their manager with some quotes from various members of the sales team and the Sr. Execs. Maybe include a gift card as a kicker. But the note is the real thing.
- Give everyone in the company some much needed extra vacation days (one or two - nothing weird like 30 extra days.)
- Recommendations from their manager to the individuals LinkedIn profiles (if they have them.)
Reason Two:
I want to know what you think of it? Am I way off base? Does this makes sense to you all. Majority will rule.
Not really - regardless of what you all say I will still think it is crass and demeaning. But give it a shot in the comments.
I'm having a hard time imagining anyone thinking that was a good idea, but I suppose context and culture would be part of it.
I agree, though, that there are much better ways to show appreciation. Why not just have an all-team lunch, then send everyone home? People like getting more time off. Probably cheaper than the bar tab for the sales team to boot.
Posted by: Dwane Lay | April 19, 2011 at 08:53 AM
That's just gross. It's an insult to injury (or in this case, rubbing beach sand in the wound of those left behind) that they have the audacity to raise a glass to them being in the tropics, thanks to everyone's collective effort... CHEERS! (not)
All I hear from the quoted "thank you" video is, "thanks for getting me here!" I think the note is a good idea but I often dislike the thank-you-cards sent from businesses or fellow employees that just say the right thing (unless it came from one's own free will). I can't help but think, what makes me think that a personal (forced) note is going to be heartfelt when they would have taken that vacation in a heartbeat anyway? I guess it is really in the quality of the people a company hires and the team the leaders built.
Posted by: Sera Shioda | April 19, 2011 at 11:47 AM
Reminds me of that line "Coffee is for closers!"
What a classless thing to do.
Posted by: Jeff Hock | April 19, 2011 at 12:56 PM
I would agree a "forced" note would be a problem. I was trying to get across the idea that a personal note, focused on a personal contribution is a nice thing to do. The key is "personal and authentic" - which you highlight. But in reality - anything IMHO - would be better than the video.
Posted by: Paul Hebert | April 19, 2011 at 01:30 PM
Remarkable isn't it - the number of better ways to do this outnumber this one by a factor of say... infinity. Truly a bad, bad idea.
Posted by: Paul Hebert | April 19, 2011 at 01:30 PM
This kind of incentive program reminds me of the scandals that we heard about back in 2008 about major companies recieving TARP funds sending their executives on vacation to exotic "conferences" and destinations that I can only dream of going to one day. I seem to think that this type of incentive program only incites jealousy, internal strife and competition, and cut-throat sales tactics that end up back-stabbing their fellow sales people. And what about the rest of the company employees? Do they get trips to their local community pool as an incentive? I completely agree with you on this one, Paul. It seems very counter-productive to boosting performance and sales quota achievement.
Posted by: Billy Wheeler | April 19, 2011 at 01:40 PM
Great post, Paul. Agreed on the meaningful note -- that's why we not only require a detailed message of appreciation (after all, if you're going to take a minute to recognize a colleague, you might as well take two minutes to make it specific and personally meaningful) but also encourage customers to allow anyone to "pile on" with additional notes of congratulations.
Similar to your point that Sales doesn't close business without the help of many people, so too do your "star performers" not shine without the help and support of the vast many in the middle. It's that middle percent of good, steady (but "average") performers who are so often neglected when it comes to recognition and appreciation.
Posted by: Derek Irvine | April 26, 2011 at 07:51 PM
Sorry so late in responding. You may have misunderstood my position on this one. I agree with group travel as an award in many situations. I am not against group travel. What I was against is the video home from the destination. That is just uncalled for.
These programs, designed correctly, don't create internal strife and incite jealousy. And, your reference to TARP recipients and the trips is wrong. The press made a field day out of that - and they had their facts all wrong. The recipients were independent agents who earned the trip based on incremental sales - and the trip was paid for out of the incremental margin earned. They did not use TARP funds and it was not the executives of the company - it was independent, non-employee sales agents.
I am a big supporter of programs that reward effort. And sales especially - is unique in a company in that their performance is transparent and public. There is no other position in a company with as much risk (and reward) as sales. They can lose income due to a screw up almost anywhere in the company - from customer service to billing. They can lose their jobs due to market conditions and poor account management. Sales is a tough gig.
Posted by: Paul Hebert | April 27, 2011 at 05:29 AM
Agree Derek - often overlooked but never unimportant.
Posted by: Paul Hebert | April 27, 2011 at 05:30 AM
Perhaps the point of this contest is to generate controversy? I know my mind is going haywire trying to rationalize the incentive program you referenced!
Posted by: Glenn Friesen | May 02, 2011 at 04:49 PM
I know it was not to generate controversy. The poster was serious in their praise of the program. I will still say - sometimes it makes sense to use group travel. Sometimes not. In this case it was more the way in which I felt they rubbed the non-traveling support team's collective noses in the program rewards. Just bad form all the way around. But it was a serious program.
Posted by: Paul Hebert | May 02, 2011 at 04:54 PM