Skip to main content
Iconixx Insights BlogIncentive Compensation Management

Incentive management software lessons from the NFL playoffs

By January 23, 2014June 11th, 2024No Comments

As the NFL’s Denver Broncos and Seattle Seahawks gear up for the Super Bowl, players and fans know that the most important game of the year can have a great impact on player reputations. A heroic game can elevate a footballer’s stock whether he’s a star or a role player, while a poor showing can lead many to conclude that he’s not up to the task of performing his best when the pressure’s on. The way that players drive their personal stock up has a lot in common with incentive management software. Both put personnel in situations in which they can be more productive and directly contribute to their own compensation. They also both combine the tangible value of monetary compensation directly related to performance with more difficult to define assessment of one’s role within the larger organization.

Critical times become incentives
For the most part, NFL players make a lot more money than the average professional. During the playoffs, however, many players’ earnings are substantially lower than what they receive for an average regular season game. Playoff money is paid from the league, not the team, so earnings go down, according to Forbes. A player on a team that earned a division title and lost in the first round of the playoffs makes $22,000 for the game. For a star player like New Orleans Saints quarterback Drew Brees, this actually represents a $413,000 pay cut from what he would normally make in a game. A player on the eventual loser of the Super Bowl makes $44,000, while a player on the winning side earns $88,000. Even a Super Bowl winner is likely taking much less than his usual per-game value to play in the big game.

One of the major reason players play harder despite making less, of course, is that they know that playoff performance can give them more opportunities for financial windfall in subsequent contracts. This line of thinking is similarly adopted by employees who use incentive management software to show how their all-around job well done or sales performance can kick into higher gear during a crucial, “playoffs” part of the year for the company or sales team.

An example of an NFL employee who leveraged the higher incentives available through a strong playoff showing is Baltimore Ravens quarterback Joe Flacco. A good player during the regular season, Flacco delivered a superstar-level four-game stretch during the 2012-2013 NFL playoffs that helped drive his team to an upset Super Bowl win. Although he did not make much (relatively) for his efforts, which garnered him a Super Bowl MVP award, he was later rewarded with a $120.6 million contract. It made him the highest-paid player in NFL history, according to the Baltimore Sun.

Using incentive management software to find your company’s Flacco
Incentive management software can help an organization identify employees who rise to the occasion at a critical time. If employees understand when their absolute best efforts can make the most impact on organizational development, they are more likely to go the extra mile when they know that their perseverence will be recognized and rewarded. However, software can also help employees quantify their efforts at all times, just like NFL players do in the regular season. Perennially top contributors will be able to demonstrate their consistent efforts and communicate their value by constantly meeting and exceeding expectations.

Just like NFL teams, there are times in the year or in an organization’s development when an extra productivity boost can offer the most help, like the end of a fiscal quarter or during the retailers’ holiday-selling season. Incentive management software gives both employers and employees a means to effectively communicate the organization’s challenges and gives personnel a road map to demonstrate their efforts.

Leave a Reply

×
Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

×
Harbert Management Corporation

Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

×
KBH Ventures

KBH Ventures was an early investor in Iconixx Software. KBH's investment philosophy plays a significant role in the firm's successful track record. KBH believes in running businesses to be cashflow positive and profitable every month. Startups and companies in a startup mode, such as one that has been purchased in distress, are expected to generate revenue within the first six months and reach profitability within the first 12 to 18 months. KBH also only invests in or acquires companies that are in the startup phase or have less than $20 million in revenues. KBH targets technology companies that offer business-to-business services.

×
S3 Ventures

S3 Ventures is an early expansion and growth stage venture firm with $200 million under management. It’s focused on information technology solutions that solve large business problems. S3 also invests in medical devices that improve the human condition. S3 invests in category-defining opportunities. It partners with the team and help focus methodically on what it takes to build a successful company. S3 today helps talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. Investment sizes start at several million or more for Series A, B, and C financing.