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You NEED a Program!

The Real Costs of Accidents Can Be Measured and Controlled.
Iceberg of Accident
What Does an Accident Cost?
Yearly Incident Costs Profit Margin
1% 3% 4% 5%
$1000 100,000 33,000 25,000 20,000
$5000 500,000 167,000 125,000 100,000
$10,000 1,000,000 333,000 250,000 200,000
$25,000 2,500,000 833,000 625,000 500,000
$50,000 5,000,000 1,667,000 1,250,000 1,000,000
$100,000 10,000,000 3,333,000 2,500,000 2,000,000
Merchandise vs. Cash
Arguments for Non-Cash Incentives.
Business Reasons Financial Reasons Psychological Reasons
  • Targeted at people rather than product or service.

  • Transposes corporate objectives into personal objectives.

  • Isolates objectives rather than gross sales.

  • Captures discretionary dollars, time, and energy.

  • Improves communications ... incentive messages are read!

  • Strong residual benefits for both sponsor and participant.

  • Brings executives and their best customers together in an ideal environment.

  • Strengthens loyalty to company.

  • Exciting ... highly promotable.

  • Reduces risk ... variable cost related to results.

  • Incremental funding possible ... pay only on sales or results over plan.

  • Not precedent setting, not considered income.

  • Allows for co-funding.

  • Protects basic pricing strategy.

  • Positive cash flow, impact precedes changes.

  • Value of float and breakage to client.

  • Tax advantages, in some cases, to both sponsor and participants.

  • Doesn't 'disappear' into participant's wallet.

  • Reinforces desired behaviors.

  • Satisfies the need for psychic income.

  • Motivates people beyond their comfort level.

  • Motivates both the high achievers and those working below their potential.

  • Encourages goal setting.

  • Increases progress awareness.

  • Allows recognition by peers ... can be talked about and promoted.

  • Singular award, no options, can't be divided.

  • Membership in elite group.

  • Has no guilt association.

  • Involves family.