Financial Data
Updated 30 Sep 2020

5 Mandatories when appointing an incentive service provider

With the complicated selection and procurement processes so prevalent (with good cause) in the current business environment, it is frequently difficult to pinpoint the exact requirements that’s truly valuable to a company. 

David Sands, 22 June 2017  Share  0 comments  Print

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In a niche market, blanket requirements frequently fall short of the actual value a service provider can deliver, which is why it is important to take note of the following five mandatories that will help heads of procurement, sales directors and HR managers choose the right service provider within the South African context:

1. Value

Value is not the same as “saving”. Value is the amount of effectiveness that a service provider can provide, where the client’s business needs are fulfilled (and more) at a remuneration that is beneficial to both the client and the service provider. Frequently negotiations happen at an exclusive price point, which effectively strips away real value and replaces it with work to rule. It’s something to guard against.

Related: The science of successful incentives uptake

2. Proof

It’s very easy to talk the talk, but what about walking the walk? A case study shows the real tangible detail of the effectiveness of the service or product. It might sound logical, but frequently companies opt for scenario presentations, showing what they could do for a client instead of what they can do. Ask for proof, it’s ultimately a big decision to make.

3. Partnership

Great partners deliver great results. Look at the length of the partnerships the potential service provider has cultivated. This illustrates the level of trust between the service provider and business.

Once a service provider stops calling themselves “service provider” and opts for a more personal “partner” expression and the relationship exceeds multiple tender seasons, then that is proof of a good partnership.

4. Technology

Who do companies want to partner with… a leader or a follower? In an ICT solutions market, there are numerous methods that could fulfill the needs of a business, however business needs change. This means that the technology solutions provided should be flexible to change with the business. If you get that, then you have an innovative evolving solution that will help prevent costly delays and extreme frustration.

Related: 21 Ways to reward your employees

5. BEE

New BEE codes have recently been implemented that substantially benefit businesses that use suppliers with higher BEE ratings. For instance, if a supplier is Level 1 BEE accredited, it will benefit clients doing business with them. They can claim their BBBEE points on their scorecard at a level of 135%.

In addition to this, clients will claim points for procuring from a 51% black-owned supplier and for procuring from a Qualifying Small Enterprise (QSE). This is in line with the majority of corporate procurement policies and provides clients with maximum BBBEE benefits on the procurement side of things. 

Ultimately, procuring the right partner will depend on the right questions that get asked, however if the criteria is built around these 5 points, the chances of appointing a reputable service partner will be higher. In that case, everyone is a winner.

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About the author

David Sands

David Sand – CEO and founder of UWIN IWIN (Pty) Ltd -1994, with offices in South Africa, Kenya, Egypt, Ghana, Nigeria, India and Brazil. 2013 Global President of Site Global, the professional association for leaders in the motivational events and incentive industry. He is regarded as a pioneer in the field on online incentive point banking and online loyalty, recognition and reward fulfilment. David is also the founder of the Youth Employment Index a non-profit company that addresses youth employment issues in Africa.

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