Incentive Research Foundation/Incentive Federation Study Points to New Trends in Awards

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Jun 10, 2011, 01:22 ET

ST. LOUIS, June 10, 2011 /PRNewswire-USNewswire/ -- Non-cash incentives are being tapped as a way to both control spending and motivate employees and channel partners in an economy defined by growing austerity. The average employee cash incentive award is now $732--triple the cost of non-cash awards, according to preliminary findings of a new joint study about incentive awards conducted by the Incentive Research Foundation (IRF) and the Incentive Federation. The cash award is not part of base or variable pay, but rather given as an incentive.

Although full-study results will not be available until later this summer, several key findings were unveiled at the IRF's annual Incentive Invitational held recently in Las Vegas. "We were fortunate to have preliminary results of the study as part of our popular roundtable discussions to help attendees get a better understanding of the type and value of the awards that are being used, especially following the recession," said Jeff Broudy, chairman of the IRF board of trustees.

"The study validates our experience and belief that the average cost of a cash award is roughly triple that of either merchandise ($206) or gift cards ($240)," according to Incentive Federation Chairman Stephen Slagle. "The total cost of incentives is especially important in our post-recession economy, so the data points stimulated extensive discussion around the benefits of each award type," he explained.

"Surprisingly, we found that the average travel award was higher than we expected at $3,115 with nearly 75 percent of the respondents including a business meeting or other element as part of the travel package," said Broudy.

The study also found that less than 18 percent of those who use non-cash awards determine the value of these awards based on hard data, with most opting to use intuition or observation to determine award value. IRF President Melissa Van Dyke commented that this finding presented an important issue for further exploration and education. "We also noted increased use of more than one award type and continuing growth in the use of gift cards," she concluded.

The IRF and Incentive Federation are expecting more actionable findings when the full study is released, anticipating that it will provide additional data for incentive professionals and human resource decision-makers to adjust their organization's overall recognition strategies to better suit a post-recession economy.

About the IRF

The Incentive Research Foundation (www.TheIRF.org) funds and promotes research to advance the science and enhance the awareness and appropriate application of motivation and incentives in business and industry globally. The goal is to increase the understanding, effective use, and resultant benefits of incentives to businesses that currently use incentives and others interested in improved performance.

About The Incentive Federation

Founded in 1984, the Incentive Federation is the umbrella legislative organization for the incentive field representing national trade associations, trade publications, and national trade shows. It is the only organization whose membership includes all of the industry's national trade associations and individual companies. The Incentive Marketing Association, the Promotional Products Association International, Recognition Professionals International, The Incentive Research Foundation, and SITE International Foundation are active members. More information can be found at: http://www.incentivefederation.org/.

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Jeff Broudy

https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=100867

Melissa VanDyke

https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=100868

CONTACTS:
Sue Voyles
734.667.2005
[email protected]

Melissa Van Dyke
314.473.5601
[email protected]

SOURCE Incentive Research Foundation