Like our CEO Grayson Morris always says, “If you can measure it, you can incentivise on it.” That’s kind of the beauty of the Performio Platform really. A lot of organizations are stuck with very limiting incentive comp processes like formulas and rules based systems, that limit how creative you can get with your comp plans. Since they say variety is the spice of life, let’s dig into the spice rack and explore the many flavors that can be possible with Performio.
Offering non-cash incentives can be an effective way to motivate your sales reps, drive sales activities, promote competition and teamwork, increase productivity, improve morale, and enhance company culture. But there are many different kinds of non-cash incentives you can provide, and different types can work better for encouraging different kinds of behaviors.
In this article, we’ll take a look at nine types of non-cash incentives you can use—for individual sales reps and for the team as a whole—explaining why all of them are valuable.
Why non-cash incentives are important
Since variety is indeed the spice of life, non-cash incentives can help to break up the routine of a cash-based compensation plan with some more creative and fun rewards. But even more importantly, non-cash incentives provide a way to motivate certain sales activities while mitigating the risk of commissions outpacing revenue.
Let’s say you wanted to incentivise a sales activity that isn’t directly tied to revenue generation—like sending outreach emails. If you offered a cash incentive for each email sent, you could end up with too many emails sent to poor-quality leads and less revenue in return than what you spent on incentives. Offering a smaller non-cash incentive for crossing a certain threshold of emails sent could reduce the risk and motivate sales reps in a manner that is proportional to the activity being incentivized.
Generally speaking, the more directly a sales activity is tied to revenue generation, the more likely it should be compensated with a cash incentive. The further away it is from revenue generation, the more likely a non-cash incentive would be preferable.
Additionally, non-cash incentives can be used to promote healthy competition, encourage teamwork, and foster a positive workplace culture where sales reps feel appreciated and rewarded for what they do.
Individual vs. group incentives
Non-cash incentives can be broadly divided into individual and group incentives:
- Individual non-cash incentives are earned by each sales rep separately, and may be awarded either for meeting a certain goal or for outperforming other sales reps.
- Group non-cash incentives are earned at the team level, and are typically awarded for meeting a certain goal as a group, or they may be given as a surprise in thanks for a job particularly well done.
Our list of non-cash incentives includes both varieties.
Individual non-cash incentives
Non-cash incentives for individuals can come in the form of cash equivalents, stock equity, quality of life outside of work, and resources and enablement. We’ll take a look at why each type is important.
1. Cash equivalents
Cash equivalents are perhaps the most straightforward form of non-cash incentive. They have a direct cash value and are usually given in the form of gift cards, gift certificates, or store credit. These make for a great incentive, as they are easy and uncomplicated, and they give employees the chance to spend them on whatever they prefer—especially if they also get to choose what merchant the gift card is for. Many organizations use gift-fulfillment platforms, like Alyce, Giftbit, Guusto, Nectar, or TruCentive, to facilitate the earning and delivery of cash equivalent incentives.
2. Stock equity
Stock equity typically comes in the form of stock or stock options. In addition to being a valuable incentive for sales reps in its own right, it has the added benefit of helping to further align the interests of your reps with those of your organization. For employees who own stock in your company, they do well when the business does well, adding even more motivation for them to work hard for the organization’s success.
3. Quality of life outside of work
Quality of life outside of work is a broad category of non-cash incentives that covers any number of rewards intended to enhance a sales rep’s personal time. It can include things like extra paid time off, paid vacations, tickets to sporting events or the theater, memberships to gyms or clubs, or even bigger prizes like winning a car as the salesperson of the year. These kinds of incentives can help reinforce a healthy work-life balance in addition to motivating sales activities.
4. Resources and enablement
Resources and enablement refer to workplace advantages given to sales reps in recognition of their achievements to help them advance the good work they’ve been doing. Giving these kinds of non-cash incentives shows a salesperson that you recognize their accomplishments and trust them to take it a step further.
For example, you might offer subscriptions to paid resources like LinkedIn Premium after sales reps have met a certain goal. Or you might reward high-performing BDRs with especially hot leads. It gives them a chance to earn more commissions and gain attainment credit toward their quota, and it ensures that your leads are going to people you can trust to see them through. Plus, if your best sales people feel like they’ve “got it good” at work, they’re a lot more motivated to stick around—which is especially valuable in these high turnover roles. Any time you can align non-cash incentives with business goals is a win-win.
5. Status, prestige, and opportunity
Status, prestige, and opportunity refers to non-cash incentives that help to advance a salesperson’s position within the organization. They show the recognized individual—and everyone else—that they’re doing a great job and being seen for it. This can include things like earning badges and awards on in-company social profiles, being named for particular praise on an internal newsletter, and having in-person lunch with executives. These kinds of incentives provide a morale boost and promote company loyalty.
Group non-cash incentives
Non-cash incentives for groups can come in the form of cash equivalents for the team, team-building gifts and experiences, workplace upgrades, and serendipitous gifts. Let’s consider how each can contribute to a high-performing sales team.
6. Cash equivalents for the team
Cash equivalents for the team are similar to cash equivalents for individuals. The difference is that the gift cards, gift certificates, or store credit are given out to the group in recognition for accomplishments they achieved together, rather than to separate sales reps for what they’ve done on their own. It’s worth calling out as a separate type of non-cash incentive because while individual cash equivalents promote competition, group cash equivalents promote teamwork. And you’ll want a good balance of both of those aspects for any healthy sales team.
7. Team-building gifts and experiences
Team-building gifts and experiences include things like team lunches, trips and retreats, and upgrades to existing planned events—like additional fun activities at the next sales kickoff (SKO) meeting. They encourage the group to cooperate as a team in order to earn these experiences, and then they further reinforce collaboration as team-building activities in themselves. They’re a great way to boost morale while incentivising sales activities.
8. Workplace upgrades
Workplace upgrades are things like new tools, new furniture or equipment, upgrades to existing tools or equipment, or even fun amenities like a new espresso machine. These non-cash incentives can motivate sales reps to earn them, and then once earned, their presence in the workplace can enhance employee morale and productivity. It’s yet another way to seamlessly align the interests of the team with those of the organization.
9. Serendipitous gifts
Serendipitous gifts come in the form of any of the group non-cash incentives we’ve already discussed, but rather than setting them as a reward to be earned for completing a goal, they are simply given out as a surprise in response to excellent performance.
For example, our Director of Revenue Enablement, Brent McNamara, fondly recalls a time years ago when the team he was working on overachieved on the first half target, and the company bought Herman Miller chairs for everyone in the sales organization. It boosted morale, it enhanced the company culture, and it made an impact that has stuck with him all this time later. Such serendipitous gifts are a tremendous way to foster loyalty, improve retention rates, and show the team how much you appreciate them.
Motivate your sales reps with Performio
Whatever kinds of incentives you use, you’ll need an ICM platform to give your sales reps transparency into their earnings. With Performio, they can easily manage their sales activities, track their progress toward quotas and incentives, and see exactly what they can expect to earn.
Additionally, Performio can launch and manage Sales Performance Incentive Funds (SPIFFs), whereas many other platforms can’t—making it the ideal choice for cash and non-cash incentives alike.
Ready to see what Performio can do for your organization? Request a demo today.