Updated October 3, 2024
Retail managers must find effective ways to motivate teams and celebrate their successes to maintain high performance and meet sales goals.
Only when you can answer an associate's internal question, "What's in it for me?" can you move the needle of higher conversions.
One powerful tool in your arsenal is a well-designed reward or award system. But well-designed doesn't mean expensive. As a manager, I had no reward budget, so I had to be creative. When selling cowboy clothes, I hung a set of small cowbells my mom had given me from the 10' ceiling. Whoever had the highest sale that day got to have one of the retail crew grab the ladder, climb up, and say (The name of the person) rocks." This was to be done during our open hours.
Silly, right? Who would care? Surprisingly, everyone. And who did they most want to ring the bell for them? Me. That was fine. Everyone laughed, and I remember Melinda frequently using it to put an add-on sale over the top: "When you buy this, I get to make my manager climb up, ring those bells, and say I rock."
I don't encourage making anyone get on a ladder these days, but the idea of public rewards for those who do the job always helps grow your sales.
Here are several creative and impactful reward ideas from my fans on Facebook and YouTube, their real-world experiences, and the impact these rewards can have on your team members.
1. Monetary Rewards
Let's get the most basic one out of the way first. Cash bonuses remain a popular and straightforward option. As Chrissy Benevides shared, she once received a substantial $4,400 bonus (before taxes). Cash awards allow employees to use the bonus as they see fit.
Linda Cook recalled, "The local family store I worked at in the 80s—90s would give me a $1200-$1500 Christmas bonus. I always took a nice vacation in the spring with it." She purchased a memory with the money, but it is often used to pay bills—not very memorable.
Pros:
- Allows employees to choose their own reward
- Directly ties performance to financial gain
Cons:
- Can be quickly forgotten or spent
- Can create expectations for future bonuses
2. Travel and Experiences
Many respondents fondly recalled travel rewards, from local getaways to international trips. Jennifer Melius Wood mentioned a 4-day trip for two to NYC, complete with accommodation in the company owner's business condo and spending money.
Pros:
- Creates lasting memories
- Can be tailored to individual preferences
- Provides a break from work, potentially improving productivity upon return
Cons:
- Can be expensive for the company
- May not suit all employees (e.g., those with family commitments)
- Requires careful planning and coordination
3. Technology and Gadgets
High-value tech items can be excellent motivators. Kristen Fortner mentioned receiving a 60" Smart TV, adding, "I was grateful." This simple statement highlights how tangible rewards can generate genuine appreciation among employees. Note she even remembers the exact size.
Nancy Rawlinson shared her experience receiving "a big fat Amazon gift card that I used to buy a fancy Nikon camera and all the gear to go with it!" Your sales awards can enable employees to pursue personal interests or hobbies that they'll remember you helped foster.
Pros:
- Appeals to tech-savvy employees
- Can be used both at home and potentially for work
- Tangible reminder of achievement
Cons:
- May become outdated quickly
- Not all employees may value tech items equally
- Can be expensive for high-end products
4. Luxury Items and Experiences
Some companies use luxury rewards to make their top performers feel extra special. Examples include:
- Kim Walsh's Tiffany's bracelet and Waterford crystal box
- Joe Jutrisa's voucher for two to dine at a Michelin-star equivalent restaurant
- Sharon Williams' diamond charm bracelet program
Sharon Williams shared, "I was a regional manager and all the people that worked for at least a year for the company could get a diamond medallion charm for a beautiful white gold chunky bracelet. It was not a personal goal. It was set as a group goal. We had a small local jewelry store that stocked the charms for us. They were round with about a 1/4 CT stone in them. At most, you could earn 4 a year. But because it was a team goal, everyone pitched in."
Pros:
- Creates a sense of exclusivity and prestige
- Can be highly motivating for status-conscious employees
- Memorable and long-lasting
Cons:
- May create jealousy among team members
- Can be perceived as frivolous by some employees
- Potentially high cost for the company
5. Professional Development and Career Advancement
Even an award that allows opportunities for growth and development can be highly valued. April Gallup mentioned an all-expenses-paid trip to visit the corporate office for the next season's product rollout meeting.
I had an owner take me aside as the top earner and explain how to establish credit, get a downpayment, and get more financial advice. This personal mentorship has value, as Robert Gonzales shared his perspective: "My Career. I am very thankful and grateful for his coaching." Investing in your employees' professional and personal growth is a great motivator.
Pros:
- Can benefit both the employee and the company
- May lead to increased loyalty and retention
Cons:
- Benefits may not be immediately apparent
- Some employees may prefer more tangible rewards
6. Time Off and Flexibility
Patric Richardson shared that his favorite reward was getting the day after Christmas off, which allowed him to spend more time with family during the holidays. He noted, "I always flew home for Christmas, so that one was huge. I tried really hard for that." Personal time-based rewards have meaning, especially when they align with personal priorities.
Andra Perez mentioned their company's annual cruise for employees and their families, adding, "All expenses paid with free drinks lol. Last year, it was nine days." This type of award combines time off with a memorable experience, potentially creating strong bonds among team members and their families to your business.
Pros:
- Promotes work-life balance
- Can be highly valued by employees with families
- Potentially low-cost for the company
Cons:
- May create staffing challenges
- Not all employees may value additional time off equally
- Could impact business operations if not managed properly
7. Unique and Personalized Rewards
Sometimes, the most memorable rewards are those tailored to an individual's interests or needs. Shawn Fitzpatrick recalled buying his top performer a motorcycle, while Jennifer Carter earned a trip to Disney World for outstanding customer service.
Tammy Galvin Beideman shared a touching memory: "When I was in high school, I worked at Kentucky Fried Chicken. I was the customer service worker of the year. Cross-brand pens were important back then, and I got a cross-p pen with the Colonel's face on it. And I got a $.10 raise. I was so proud of that!!" Even small, personalized rewards can have a lasting impact, especially early in one's career.
Pros:
- Shows that the company values and understands the individual
- Can be highly motivating due to personal significance
- Creates unique and memorable experiences
Cons:
- Requires effort to understand each employee's preferences
- May be challenging to maintain equity across the team
- Could be difficult to scale for larger organizations
Developing Criteria for Rewards
It is always best to know what each individual would want for themselves as a reward for exceeding sales goals. Smaller crews can do this, but many don't. To create an effective rewards program, it's essential to establish clear criteria for achievement. Consider the following approaches:
1. Tiered Goals: Set multiple levels of achievement with corresponding awards. For example:
- Bronze: 105% of sales target - $100 bonus
- Silver: 110% of sales target - $250 bonus
- Gold: 120% of sales target - Weekend getaway
- Platinum: 130% of sales target - A luxury item or experience
2. Product-Specific Incentives: Align rewards with specific product sales or categories. We often call this a spiff program, often sponsored by a brand. It can be particularly effective for high-margin or new products. Brigitte Bee Kirchgatterer mentioned a program where employees could earn cash on items they had recently learned about in training sessions, noting, "You could cash out at the end of the day and if you hustled, you could make an extra $100-200 every day."
3. Balanced Scorecard Approach: Consider multiple factors beyond just sales numbers, such as:
- Customer satisfaction ratings on Google
- Upselling performance shown by higher units per transaction (UPT)
- Team collaboration
4. Long-Term Performance: Implement rewards for consistent performance over time. David McCord shared an example where employees who won "Employee of the Month" multiple times over two years were entered into a drawing for a car. I've done something similar with employees who beat goal get an entry into a drawing at the end of the quarter for a trip to Fiji.
5. Team-Based Goals: Encourage collaboration by setting team or store-wide targets, like Sharon Williams' example.
Frequency and Structure of Awards
I am a big fan of daily goals, so the results can be seen quickly. Sometimes, retailers come up with convoluted content or ones that run for 3+ months, which rarely add much but despair. That's why the frequency and structure of your rewards program can significantly impact its effectiveness:
1. Regular Recognition: Implement a mix of small, frequent rewards (e.g., "Employee of the Week") and larger, less frequent incentives (e.g., annual bonuses or trips).
2. Surprise Rewards: Occasionally, offer unexpected rewards for exceptional performance, like a scratcher lotto ticket, to keep employees motivated and engaged.
3. Cumulative Programs: Consider programs that allow employees to accumulate points or credits over time, which they can redeem for rewards of their choice.
4. Seasonal Incentives: Align larger rewards with key business periods, such as holiday seasons or annual sales events.
5. Peer Recognition: Implement a system where employees can nominate colleagues for rewards, fostering a culture of appreciation.
Implementation Tips
1. Communicate Clearly: Ensure all employees understand the criteria for earning rewards and the available options. Transparency is key to maintaining motivation and trust. Ask someone outside your company to read the rules; if they don't understand, revise.
2. Seek Input: Survey your team to understand what types of rewards they find most motivating. This can help you tailor your program to your specific workforce. While most will say cash, take that off the table immediately.
3. Be Consistent: Apply criteria fairly across all eligible employees to maintain trust and motivation. Inconsistency can lead to resentment and decreased morale. It is paramount to use POS numbers that can't be manipulated.
4. Celebrate Publicly: Recognize achievements in team meetings or company-wide communications to amplify the impact. Public recognition can boost the recipient's pride and motivate others. #cowbells
5. Review and Adjust: Regularly assess the effectiveness of your award program and be willing to make changes based on feedback and results. A flexible approach ensures your program remains relevant and motivating.
6. Consider Tax Implications: Many rewards, notably cash, may be considered taxable income. Always consult with your CPA or tax professional for guidance on the tax implications of your rewards program.
7. Align with Company Values: Ensure your rewards program reflects and reinforces your company's core values and culture.
The Impact of Thoughtful Rewards
The personal anecdotes shared by various employees highlight the lasting impact that well-chosen rewards can have. From Robbie Grady's cherished leather jacket to Jennifer Jo Backus's memory of using her Zales gift card for a special ring, these stories demonstrate how rewards create positive associations with the retailer and foster a sense of appreciation.
Monica McNeely Hicks recalled a particularly memorable reward: "An office trip to Charleston, SC, with the owner and his wife. They cooked for us, took us out to dinners and sightseeing, and gave us $100 spending money." This personalized, experiential reward can create strong bonds between employees and management, potentially increasing loyalty and job satisfaction.
Even smaller gestures can have a significant impact. Theresa M. Ayers mentioned receiving an electric stapler, while Tim McConnell got a Swiss Army knife for 20 years of employment. While these may seem modest, the fact that they were remembered and shared suggests that the act of recognition holds value.
The Power of Using Rewards for Achieving Sales Goals
A well-designed awards program can be a powerful tool for motivating your retail team and driving performance. By offering a mix of monetary, experiential, and personalized rewards, you can cater to diverse preferences and create a culture of recognition and achievement.
The emotional responses and lasting memories shared by retail teams who have received meaningful rewards underscore the potential impact of a well-thought-out incentive program.
Remember, the most effective rewards are those that the team member already values. Whether it's a luxury vacation, a personalized gift, or simply an opportunity for growth and development, the key is to make your employees feel valued and appreciated for hitting sales goals.
A strong rewards program can differentiate between a good and great team, driving your sales.
