SOURCE: The Incentive Research Foundation

April 03, 2012 14:50 ET

It's Official: Firms That Use Reward & Recognition Programs Post Markedly Higher Revenues Than Those That Don't

New Study Finds a Difference of Nearly Seven Percentage Points

ST. LOUIS, MO--(Marketwire - Apr 3, 2012) - Organizations that implement non-cash reward and recognition programs have annual revenue increases averaging 9.6% versus just 3% for all other companies -- more than three times higher.

A new study -- "Sales Performance Management 2012: How Best In Class Optimize the Front Line and Grow the Bottom Line" -- conducted by the Aberdeen Group and distributed by the Incentive Research Foundation (IRF), underscores the importance of rewards and recognition as a vital compensation component. The study also outlines the competitive advantage companies gain when they go outside their organization for assistance in designing and implementing such programs.

IRF President Melissa Van Dyke explains that the study examines "Best-in-Class" trends for sales force compensation, finding that top-performing companies are twice as likely to use an external partner when designing and implementing such programs. "Interestingly, this study also demonstrates that the size of the organization isn't a significant factor, but that corporate senior leadership buy-in is a key ingredient for success," adds Van Dyke.

"This study definitively shows organizations that implement non-cash reward and recognition programs outperform all other organizations in several major business indicators," notes IRF Chief Research Officer Rodger Stotz. "Perhaps the best lesson to be learned from this analysis is that professional sales staffs respond to measurable rewards and recognition much like other employees, so it's not surprising to find that companies using such programs post better sales results."

To view the paper, please go to

About the IRF:
The Incentive Research Foundation ( funds and promotes research to advance the science and enhance the awareness and appropriate application of motivation and incentives in business and industry globally. The goal is to increase the understanding, effective use, and resultant benefits of incentives to businesses that currently use incentives and others interested in improved performance.

Contact Information

  • Contact:
    Jon Lieb/Lois Russo
    IRF Media Relations