June 29, 2016 | Melanie Wills
With the final whistle blowing on a disappointing 2-1 defeat against a victorious Iceland, English football fans watched as their team crashed unceremoniously out of the 2016 European Championships.
For the second time within the week, pundits – this time of the sporting kind – were taken unaware and the final result came as a surprise.
The topic of media discussion – and in particular remarks dominating social posts – once again turned to the subject of football players earnings and whether they are entitled to those extortionate sums based on their performance on the pitch.
What would happen if the FA deemed it appropriate for both players and the England manager to receive a basic, average salary with the remainder of their lofty earnings being made possible through the outcome of their performance? Would this equate to a team that would ensure the best outcome for both themselves and the country they play for?
Is performance related pay the answer in facilitating a winning formula?
It surely is a brave yet shrewd move to initiate this type of agreement and requires the proposer to be confident of their capabilities.
Nimlok’s MD, James Rook has a vision of the company’s future whereby initial discussions with clients would not only take into account their objectives but also focus on their exhibiting results.
“To support the validity of Nimlok’s ethos of engaging exhibition stands which encompass unique design and compelling interactive content, I would like prospective clients to challenge me to deliver on our promise.
By imparting their exhibiting goals and the outcome of their previous events right at the beginning of the process, I believe we can agree a formula whereby Nimlok get a ‘standard’ payment for a stand project. However if pre-agreed KPI thresholds are exceeded then we get paid an increased figure and if we fail to deliver on these metrics then the client gets charged less. In short, we get paid proportionately on our results.”
“My ambition for Nimlok to be on partial performance related pay has led to me challenging our sales team to find the first client who has already got benchmarks in place to enable us to make this proposal. Unfortunately the biggest restraint to this goal is that too many exhibitors don’t have strong enough metrics in place to begin with.”
“Through our engagement ideas and content we are changing that picture which means many more of our customers will be in a position to structure deals this way in the future. Many philosophically talk of ‘putting their money where their mouth is’ but we are actually going to do it because we are that confident of the difference we can make to our clients ROI.”
It’s an admirable stance for a supplier to take and who could argue with the logic behind it? It makes perfect sense in times where marketing budgets require constant justification for this to be the rationale behind exhibiting spend.
Going beyond the cash exchange, trust deepens and stronger working relationships develop as both client and supplier stands to win.
Back in the sporting world, clubs are indeed getting smarter. Liverpool FC introduced PRP in 2015 with positive impact according to CEO Ian Ayre. Players are incentivised to reach targets and if they do, their pay increases accordingly leaving them a ‘happy bunch’. Their improved performances also keep club bosses and fans content in the knowledge that the wins were worth the money and any lows are not a bitter nor expensive pill to swallow.
If you would like to have a results-based conversation regarding your next exhibition, please get in touch.