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Recognition in The Real World
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How to Measure the Effectiveness of an Incentive Program

Posted By Ava Ewald, Friday, March 6, 2020

RPI has drawn from its expertise, academic resources, conferences and more to develop its 7 Best Practice Standards®. Standard 3 is recognition program measurement and Standard 4 is about developing a communication plan. These two standards are essential in refining your recognition program. Here a few thoughts on how to measure the effectiveness of your incentive program.


When implementing an incentive program, you want to make sure that you are investing your time and resources well. According to Standard 3, measurement is paramount to a successful program. Roy Saunderson, a columnist for Incentive Magazine, explained what he believes are the best ways to measure your incentive program.


1.      Identify your goals

You can not measure your program without an end goal you want to achieve. Think through the results you would like to see from a successful incentive program. Do you want to increase sales? Improve customer service? Make sure this stays at the center of your incentive program.

2.      Look into the costs of what you are trying to avoid

Saunderson gives the example of accidents in a workplace. If your goal is to decrease accidents, analyze the cost of lost time due to an injury for an employee. If you want to decrease turnover, analyze the cost of hiring a new employee. Putting a price on the program will emphasize the need for your incentive program.

3.      Set smaller, achievable goals

Within your incentive program, set smaller goals to keep track of progress. This will keep you more tuned-in to the end goal.

4.      Make sure you are consistently gathering data

This applies to before, during and after your incentive program. If you are trying to boost sales, for example, make sure you collect the current sales data. During the program, it is even more important to gather data on a regular basis so you can continuously measure the progress.

5.      After your program, calculate the ROI

Was the program effective? Work out the data after the program concludes to see how successful your program was and find areas where it can be improved.


Become a Certified Recognition Professional! Learn more here.


To learn more about RPI’s 7 Best Practice Standards, click here.




Tags:  incentives  rewards  RPI 7 Best Practices 

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