IRF Financial Services Study: Effective Practices Yield Tangible Results
.png)
This Incentive Research Foundation series of industry studies seeks to identify effective practices in the use of incentives, rewards, and recognition. This study of the financial services industry finds that the top performing firms have a strategic and systematic approach that works collaboratively with other affected parts of the organization and involves sales and non-sales employees and channel partners.Key Differentiators of Top Performers
Strategic allocation of reward value
Click here to subscribe, and here for an RRN media kit.
Top-performing financial services firms see rewards and recognition as strategic drivers of culture and performance across the enterprise, with success stemming from:
- Stronger alignment with business priorities.
- Flexible, high-value rewards tailored to participant preferences.
- Ongoing optimization supported by technology.
- Broadened and uncapped earning opportunities.
- Strategic reward allocation to maximize motivational impact.
Respondents included 145 decision-makers from large financial services companies, with 22% categorized as top performers based on revenue growth, customer retention, talent attraction, and other performance indicators.
Key Differentiators of Top Performers
Resourcing and alignment
- Nearly all top performers (97%) collaborate across departments in program design.
- They enjoy stronger funding (75% rate financial support as excellent vs. 50% of comparators)--lower performing organizations.
- Programs are tightly aligned with corporate goals, positioning them as strategic assets rather than standalone initiatives.
- All top performers use award points systems, plus greater use of merchandise, gift cards, and flexible travel rewards.
- They emphasize perceived value and choice over administrative ease or symbolic gestures.
- Flexibility enables broader inclusivity and stronger motivational impact.
- 60% of top performers treat programs as living initiatives, regularly evaluating and refining them.
- They leverage technology (56% vs. 35% of comparators) to streamline operations, provide insights, and enhance participant experiences.
More flexible earning structures:
- Sales (53% vs.12%)
- Channel partners (64% vs.10%)
- Employees (21% vs. 59% requiring quotas)
- Unlimited earning potential is common, encouraging sustained effort and motivating a wider participant base.
Strategic allocation of reward value
- Rewards are distributed with purpose rather than simply increased spending.
- Higher median non-travel rewards in employee and channel programs.
- Greater value allocated to non-sales roles, reinforcing engagement across the organization.
Enterprise Engagement Alliance Services
Celebrating our 16th year, the Enterprise Engagement Alliance helps organizations enhance performance through:
1. Information and marketing opportunities on stakeholder management and total rewards:
ESM Weekly on stakeholder management since 2009; click here for a media kit.
RRN Weekly on total rewards since 1996; click here for a EEA YouTube channel on enterprise engagement, human capital, and total rewards insights and how-to information since 2020.
2. Learning: Purpose Leadership and Stakeholder
Management Academy to enhance future equity value and performance for your organization.3. Books on implementation: Enterprise Engagement for CEOs and Enterprise Engagement: The Roadmap.
4. Advisory services and research: Strategic guidance, learning and certification on stakeholder management, measurement, metrics, and corporate sustainability reporting.
5. Permission-based targeted business development to identify and build relationships with the people most likely to buy.
6. Public speaking and meeting facilitation on stakeholder management. The world’s leading speakers on all aspects of stakeholder management across the enterprise.
