2003 Incentive Federation Study Reveals Money Can't Buy Long-Term Motivation.

Business Editors

NAPLES, Fla.--(BUSINESS WIRE)--Sept. 8, 2003

A 2003 Incentive Federation, Inc. survey indicates that noncash awards are powerful tools to improve performance, morale and, ultimately, business goals, while bonuses are often less effective when it comes to motivating employees. In the study Incentive Federation Survey of Motivation and Incentive Applications, of business owners and managers, more than half of respondents say employees feel bonus payments are something they are due. On the other hand, employees prefer merchandise and travel awards for special recognition.

Key findings:

-- Nearly three of five respondents agree that a cash payment

(bonus or commission, etc.) is perceived to be part of an

employee's total remuneration package;

-- More than half of the respondents agree that employees often

look at bonus payments as something they are due (12% strongly

agree, 39% agree, 26% mildly agree);

-- More than three-quarters of respondents agree that bonuses can

have a negative impact if they are not paid or are not large

enough (21% strongly agree, 47% agree, 18% mildly agree);

-- Despite (or because of) the downturn in the economy and

pervasive layoffs, companies are spending MORE on incentive

merchandise per recipient and including more people in their

incentive programs as compared to 1999;

-- Fifteen percent of survey respondents have "purchased"

incentive programs online, a noteworthy endorsement of b-to-b

online marketing.

Conducted in spring 2003, the study was prepared by the Center for Concept Development, Ltd. Executives in manufacturing, services, finance, insurance, transportation, communications, and utilities, among other industries, were queried about their own experience using merchandise and travel related items in consumer promotions, sales incentives, dealer incentives, and non-sales related recognition programs. Six thousand questionnaires were mailed out; almost 600 were completed and returned.

The Incentive Federation is the alliance organization for the incentive industry representing the national trade associations, trade publications and national trade shows. In this position, it is responsible for all aspects of incentive marketing including merchandise, travel and services. The Federation conducts major incentive research projects, manages the Incentive Performance Center (IPC) and is responsible for industry government affairs on the state and federal levels.