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Incentive travel does nothing to ‘motivate the majority’

22/03/2012

Mainstream incentive travel programmes are ineffective in improving company performance, according to David Baker, founder of performance improvement agency DBMT.

A veteran of the incentive industry who is now a consultant, Baker believes that incentive travel schemes only work for 10/15 per cent of the sales force.

“These are the top performers who are already motivated and they seek the recognition that winning a travel programme provides,” he said. “What concerns me is the 85 per cent of the sales force who fail to be motivated by the travel campaign. It's often obvious who’s going to win before the programme has started as they are previous winners and are known within the sales force for their achievements. If that's the case, those average participants might say ‘why should I bother?’”

In fact, Baker thinks traditional incentive programmes are often a waste of money and could do more damage to the motivation of ‘Mr Average’ than they do to improve the performance of the top sales people.

“I’d like to see more management understanding of motivation,” he said. “Motivation takes place long before you talk about travel trips; it’s about company culture and people skills.

“Incentives, marketing, training and communication should all form part of a long term engagement programme, implemented from the top down. There are too many people who have come into the incentive market who really don’t know it, just selling travel and vouchers to make a quick buck. For the industry that’s wrong.”

Pictured: David Baker


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  • Mr Martin Giblin of Travel Momentum 27/03/2012

    This article caught my attention, because in our experience David’s assertion is only true if the incentive has been set up incorrectly.

    All of us in the motivation business know that the profile of any given sales force is made up approximately as follows:

    Top 20%: Top performers and achievers, will always be there or thereabouts when it comes to reaching targets

    Middle 60%: Capable sales people who can do extraordinary things when they are motivated in the right way

    Bottom 20%: Will always struggle with any performance related tasks.

    The main constituent parts of a successful incentive are that it should be fair, achievable and transparent. Most importantly it should be based not on the highest sales, which is where I believe David’s comments originate from, but from an increase in sales as a percentage based on historical performance on an individual basis.

    This way the participants are competing against themselves and not the top performers and therefore believe that they can win. From our figures, the middle 60 per cent of the sales force being motivated properly makes all the difference to the profitability of the incentive.

    Indeed, having operated a dealer travel incentive for a white goods manufacturer over a number of years on a league basis (where similar sized dealers competed against each other), the extra profit generated quadrupled over a four-year period and the majority achieved over 100 per cent of target.

    In conclusion I believe: “A properly constructed & communicated travel incentive programme will always motivate the majority of its participants.”


    Martin Giblin
    Director

  • Mr Padraic Gilligan of MCI 27/03/2012

    Baker’s legacy in the business of motivation certainly qualifies him to make provocative statements like this. He also may be right – 80 per cent of the sales force may be nonplussed by the whole thing. However, the 20 per cent of the workforce who ARE motivated by the incentive travel programme are bringing in 80 per cent of the sales. What would happen if you eliminated the programme simply because it does “nothing to motivate the majority”? You’d demotivate the elite minority who are generating the most sales! So stay with the programme, I say, while dreaming up some alternative structures to deal with the demotivated majority.

  • Mr Graham Burt of Graham Burt Associates 23/03/2012

    I totally agree with David's comments. I had the privilege of working with him at The E F MacDonald Incentive Company – one of the first US motivation agencies to come to the UK. As a young account executive I was not allowed in front of a client until I had a thorough understanding of the principles of motivation and how to apply them effectively within a properly structured, well communicated incentive programme. Most major agencies including P&MM, Grass Roots and the FMI Group do educate their people properly, but for those companies “just selling travel and vouchers to make a quick buck” there is a Diploma in Motivation run by experienced industry specialists that can give them a better understanding of how to structure successful incentive programmes. More details can be found via the following link - http://www.theipm.org.uk/education/ipm_diplomas_certificates/diplomamotivation.aspx
    Graham Burt
    Motivation & Communication Consultant

  • Mr Hugo Ponsonby Smythe of PS Taker Ltd 22/03/2012

    And pray what research is this actually based on. Can we have a Hugo says 95% of delegates prefer still water to fizzy water story please. I'd even send in a picture.



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