Why ROI Matters
The Return on Investment (ROI) is often considered a good measurement tool for evaluating a proposed expenditure. In essence, the ROI tells you how many dollars your bottom line will increase for every dollar you spend on a project. A well-designed incentive or reward and recognition program will regularly return an ROI of 150% – that is, for every thousand dollars you spend on a program, you will see savings/income of fifteen hundred dollars. The fact is, we have clients reporting an ROI of over 300%. We’ve actually had CFO’s who were skeptical at year one come back and ask how much we can increase our budget and maintain the significant ROI!
There is a second facet to ROI, and that is the Return on Performance (ROP). Once you establish with your financial people that the program will pay for itself, and more, it is significant to note that independent studies conclude time and time again that these well-run programs are exceptionally successful tools for improving performance, morale, and attitude within a corporate culture.
We at IncentPros will be happy to help you calculate your program’s ROI, and to estimate how it might improve in future years while using our programs. Contact us for a consultation.