Even in a good economy, companies need to measure benefits against investment. In a sluggish economy, productivity levels, budgets and individual line items face intense scrutiny. Incentive programs are no different.

Using the right metrics you can document how much your incentive reward program has contributed to your bottom line.

Statistics show that most incentive programs increase performance by 22-45 percent! A recent study produced by The Society of Incentive and Travel Executives (SITE) Foundation reveals incentives help create positive emotion in the workplace which greatly influences commitment to a work task.

Incentive programs designed using ROI principles offer companies better insight into their external business environment and internal processes. The calculations below can help you detail the return on investment in your incentive program. Generally, the return can be four to five times better than the initial investment.

Commonly used ROI calculator: