When to Fire Your Incentive and Rewards Company

If you’re in HR or marketing or sales this post is for you.  

If you are responsible for buying or implementing a reward program in your company this post is for you. 

If you have input into a reward program in your company this post is for you.

If you sell awards, rewards, gift cards, trophies, crystal bowls or lapel pins – this post isn’t for you.

I posted a while back saying you should fire your incentive company if they bring up Maslow.  Since that time I’ve come up with a few other choice comments that should make you raise an eyebrow, dig into the information, do some googling, call me (shameless plug), ask for references of clients that have fired them, and general say thanks but no thanks.

Every one of the following – and I’m sure I’ll think of more as soon as I post – are indicators that the company you’re talking to is only interested in selling their solution and could care less if you really are doing the right thing.

Paying homage to D. Letterman – our top 10 “Tell them to move on if your provider/supplier/vendor says anything like” list…

Number 10

We are the industry leader in X - (insert ANYTHING here – they ALL lead at something – yeah right and I’m the largest company of my size in this industry)

Number 9

Merchandise is the best award (unless you sell gift cards)

Number 8

Gift cards are the best award (unless you sell merchandise)

Number 7

Employees love lapel pins (only if your brother-in-law sells suits)

Number 6

Incentives work because of Maslow (‘cuz we all know a toaster and trip to Branson satisfies our need for self actualization.)

Number 5

Our merchandise is retail competitive (with who?  Neiman Marcus?  Oh, that’s right, they only pick the Macy’s & Nordstrom’s of the world for comparison ‘cuz they’re in the same league – nope – you’re a cataloger baby.  Check against Target and Walmart where 90% of us 2010 recession folks spend our hard-earned cabbage.)

Number 4

We were the first with an online catalog (really – only 5 I know of claim this and yaknow what – it’s 2010 I don’t care when you started it – it still looks the same it did in 1997 – ever hear of “refresh?”)

Number 3

We have the largest selection of items (of course they are counting one shirt with three sizes and 20 colors as 60 items)

Number 2

We have a “pay for performance model” and you won’t pay if you don’t get performance (but you will pay if only ONE person gets performance – this is an outright lie.  Don’t buy it. And even if the incentive company doesn't perform you’re still on the hook.)

And the Number 1 "Tell them to move on if you hear you incentive supplier say anything like:" item on our list

Cash doesn't motivate (ask the folks on Wall Street – sure it does Bucky.)

I really had about 20 but couldn’t come up with a way to package that easily – so I just took my favs.

The bottom line is this… most of what you’ll hear from an incentive and reward company is spin.  And it’s spin for a reason.  They sell stuff – and anything that may stop you from buying stuff is a bad thing for them.

• Recommending manager training won’t help them sell stuff.
• Recommending a better compensation system (I’m talking Benjamins) won’t help them sell stuff.
• Recommending they hire better or fire faster won’t help them sell stuff.
• Pulling the plug on an antiquated recognition system that reinforces bad behaviors won’t help them sell stuff.

Those companies have agendas - and they may not align with yours.

Some will say I have an agenda.  I do and here it is: 

• I don’t want companies to spend money unnecessarily.  
• I want companies (and their employees) to enjoy their company, the people and WANT to perform.
• I want to be part of their success.

I spent 25 years doing this the wrong way and I need a little redemption.  That’s my goal and I’m sticking to it.