The Attractiveness and Effectiveness of Incentive Reward ... · incentive programs have portrayed them to be a panacea in the work place. However, there is a lack of comprehensive,

The Attractiveness and Effectiveness of IncentiveReward Options: A Case Study

Analyzes Six Popular Rewards Offered by Businesses

Evaluates Motivational Rewards Effect

By Kimberly J. Shinew, Ph.DClemson University

June, 1993

A Study Funded By The Incentive Research Foundation

COPYRIGHT 1993

© 1993 The Incentive Research Foundation

This material is copyrighted and the sole property of The Incentive Research Foundation.It is not to be reprinted or reproduced in any way without prior written approval

from The Incentive Research Foundation

Please direct inquiries to:Frank Katusak, Executive Director

The Incentive Research Foundation304 Park Ave. South, 11th Floor

New York, NY 10010-4305Telephone: 212-590-2518

Fax: 212-590-2517

Email: [email protected]

*

A SPECIALNOTE BEFORE

YOU BEGIN

*

This Case Study, although developed in 1993, provides an excellent example of

the full range of analysis questions that can be used to evaluate the attractiveness

and effectiveness of Incentive Reward Options.

The Incentive Research Foundation offers this early study to you, the incentive

travel executive, in the hopes that it is helpful to you in the area of program

design, as well as in post-program assessments.

1Attractiveness and Effectiveness of Incentive Reward Options: A Case Study © 1993 The Incentive Research Foundation

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Introduction

Sales and marketing management have traditionally utilized travel incentives as a means of motivating their

sales forces to achieve and sustain exceptional levels of performance. Many previous anecdo tal reports of travel

incentive programs have portrayed them to be a panacea in the work place. However, there is a lack of

comprehensive, empirically based research which adequately examines the impact and attractiveness of travel

rewards. Furthermore, in order to evaluate incentive travel programs, it is necessary to examine the entire

incentive program system. To this end, a study was conducted at a life insurance company that currently offers

a variety of incentive rewards to its employees.

Survey Methodology

The sample was selected using a stratified random sampling procedure. Subpopulation frames were developed

based upon geographic regions. A random selection was made of two or three offices within each sales region.

A package of the appropriate number of surveys was then sent to each of the selected offices. Further, it was

decided that questionnaires would be sent to each of the 75 district managers, regardless of whether their office

had been selected for the study. Therefore, 100% of the district managers, 25.2 1% of the sales mangers and

25 .24% of the sales agents were surveyed for a total sample size of 534.

The data were collected through mailed surveys (Appendix A). The questionnaire began by explaining that some

of the incentive rewards in the survey instrument were currently not being offered at the company. Therefore,

the potential respondent was provided with a list of six rewards and a brief explanation of each. Cash rewards

were described as involving up to $1,000 in cash. Merchandise aw ards were described as including such items

as answering machines, calculators, cameras, and pens. Sales conference trips were described as the trips to

sales conferences that take place annually. Recognition awards included such items as trophies, plaques ,

company rings, desk sets, and publicity notices, while status awards involved induction into special clubs,

upgrades on business cards, and automobile leasings. Finally, personal vacation trips were referred to as

weekend excursions or get -a-ways to selected destinations. These explanations were developed by the

company and were based on past incentive rewards.

The instrument utilized forced-choice questions, with the exception of three open -ended questions (Appendix B).

The first asked respondents to react to the question, “What other types of rewards would you like to see offered

at this company?” The remaining two items asked respondents to indicate the greatest strength and weakness

of the incentive rewards at the company.


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The response packages consisted of: (a) a memorandum regarding the procedures that were to be followed for

distributing the questionnaires; (b) cover letters for each of the potential respondents assuring them of complete

confidentiality; (c) an appropriate number of questionnaires; and (d) a priority mail envelope that was postage

paid and addressed to the researcher at Clemson University. The memorandum to district office managers

instructed them to have each person in their office complete the questionnaire at their district offic e meeting on

report day. A volunteer was then, in front of the entire office, instructed to put all the completed questionnaires

into the priority mail envelope provided. Handling the distribution procedure in this way guaranteed

confidentiality. This survey procedure yielded an overall response rate of 81.1%.

Description of the Sample

The sample consisted of a fairly homogeneous group. The largest percentage of the respondents were males

between 35 and 44 years of age. Females comprised 16.7% of the samp le. There was little racial diversity in the

sample group. The majority indicated that “White (not Hispanic)” best described their ethnic background. There

was a fairly even distribution across the three classifications for tenure with the company. Almos t 35% indicated

that they had been with the company “less than one year”, compared to 33.1% who selected “two to five years”

and 32.4% who selected “more than six years”. The majority of the sample, 72.4%, indicated that they were

sales agents with the company. This was followed by 15.1% who selected the district manager classification and

12.5% who indicated that they belonged to the sales manager classification. The respondents were also asked

to indicate their household incomes before taxes for the last calendar year. Approximately 35% indicated that

their household income was “less than $29,999”, followed by 33.4% who selected “$30,000 to $49,999” as their

household income. Finally, the majority of the respondents, 46.8%, indicated that “some college” be st described

their current education status.

To determine if there were significant differences between the sample and the company population, the two

groups were compared in terms of age, gender, and marital status. There were no significant differences

between the two groups and thus, it can be inferred that the sample was representative of the company

population in reference to these key personal variables.


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Attractiveness Ratings Of Incentive Options

To measure the attractiveness of the reward options, the respondents were asked to indicate on a

7-point scale ranging from “very unattractive” to “very attractive” their reaction to each of the non -

cash awards. The non-cash rewards included personal vacation trips, merchandise awards, status

awards, recognition awards and sales conference trips. The findings indicated that sales

conference trips and personal vacation trips were most attractive to the respondents. These

findings were then compared to a second question which included cash incent ives. The overall

ratings of each of the incentive awards are graphically presented.

Sales Conference Trips

Over 70% of the respondents indicated that they

found sales conference trips to be very attractive.

Only 1.8% rated them as very unattractive.

The responses were also compared by job status. Of

the sales agents, 65.1% indicated that they found this

incentive very attractive. However, 86% of the sales

managers and 88.3% of the district mangers

indicated that they were very attracted to this

incentive.


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Personal Vacation Trips

The majority of the respondents found this incentive

to be very attractive. Almost 70% of the respondents

indicated that this incentive was very attractive to

them. Conversely, less than 1% indicated that it was

very unattractive

When comparing the attractiveness ratings of

personal vacation trips by job status, several

differences were evident. While only 59% of the

district managers indicated that this was a very

attractive incentive, almost 81% of the sales

managers thought that it was a very attractive

incentive. In terms of sales agents, 71.2% indicated

they were very attracted to this incentive.

Merchandise Incentives

Merchandise incentives were less attractive to the

responding employees. Only 29.9% of th e

respondents indicated that this was a very attractive

incentive.


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When comparing the attractiveness ratings by job

status, over 40% of the sales managers found

merchandise awards to be very attractive. However,

of the sales agents, 28.3% considered thi s type of

award to be a very attractive incentive. Additionally,

only 20.3% of the district managers found

merchandise incentives to be very attractive.

Status Incentives

Status incentives were described as including

induction into special clubs, upgrades on business

cards and automobile leasings. The respondents

were not overly fond of this incentive option. Only

15.6% indicated that this was a very attractive

incentive. Further, 6.2% indicated that it was a very

unattractive incentive.

When examining differences within the job classes,

district managers had the lowest percentage in the

very attractive category. Only 10.3% indicated that

they found this type of incentive very attractive.

Sales managers had the highest percentage in the

very attractive category: 17.8% indicated that this

was a very attractive incentive to them.


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Recognition Incentives

Recognition incentives included such items as

trophies, plaques, company rings, desk sets, and

publicity. Only 22.5% indicated that they found this

incentive to be very attractive.

When comparing attractiveness ratings between the

three job classes, similar ratings were found in the

very attractive category. However, differences were

evident in the very unattractive rating. None of the

sales managers considered this incentive to be very

unattractive, but 8.6% of the sales agents indicated

that this was a very unattractive incentive.

Overall Attractiveness

The averages between the six types of incentives

were then compared. On a 7-point scale, personal

vacation trips had an attractiveness rating of 6.4

compared to 6.38 for sales conference trips. The

travel reward was followed in attractiveness by cash,

with a rating of 6.0.


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Importance of Spouses inReward Attractiveness

The questionnaire asked respondents to consider the

person, other than themselves, who would most

strongly influence their decision to select a reward

option. As displayed in the pie chart on the right,

59% indicated their spouse. Further, when asked to

respond to the question, “I want to do what this

person thinks I should do”, the majority indicated that

they moderately or strongly agreed.

Respondents were also asked to indicate the degree

to which this person would encourage them to qualify

for each of the incentive rewards. They were asked

to respond to a 7-point scale which was anchored by

“strongly discouraged” and “strongly encouraged”.

Their responses are displayed on the right. Almost

72% indicated that they would be strongly

encouraged to qualify for personal vacation trips,

followed by conferences and cash, respectively.


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The Incentive RewardProgramRespondents were asked to respond to several statements regarding their feelings toward the incentive

program. The statements are provided above each graph. Their responses are based on a 7 -point scale

anchored by “strongly disagree” and “strongly agree”. Each question has been further divided by job class.

When asked to indicate whether they felt the rewards

are appropriate given the levels of performance

required to obtain them, the largest percentage,

32.2%, marked the moderately agree response. This

was followed by 20.0% who indicated that they

slightly agreed with the statement.

The responses were then compared by job class. For

each job classification, the highest percentage was

found in the moderately agree category.


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The second statement in this section had a fairly

even distribution of responses. When asked to

respond to the statement that the requirements for

the sales conferences make it impossible to qualify,

the largest percentage, 16.9%, moderately

disagreed. However, this was followed very closely

by 16.2% who indicated that they moderately agreed

with the statement.

The distribution remained after controlling for job

class. However, the district manager tended to

disagree with the statement at a higher rate than did

the sales managers or the sales agents.

The employees were asked to respond to a

statement regarding their ability to perform at the

levels required to win most company rewards. The

majority of the respondents indicated that they

strongly agreed or moderately agreed with the

statement.


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When examining the responses to this statement by

job class, the district managers had 33.3% in both

the moderately agree and strongly agree response

categories. Sales managers and sales agents had

their highest percentages in the moderately agree

category.

The respondents were asked to indicate whether

they agreed with the statement, “The incentives

reward those behaviors that are important to this

organization”. The largest percentage, 29.1%,

indicated that they moderately agreed with this

statement. Moreover, 28.1% indicated that they

strongly agreed with the statement.

When controlling for job class, it is evident that the

majority of the sales agents, sales managers and

district managers either moderately agree or strongly

agreed with the statement.


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The questionnaire asked respondents whether they

agreed with the statement that employees should

have more input into the incentive reward process.

Almost 50% indicated that they strongly agreed with

this statement. Less than 1% indicated that they

strongly disagreed with the statement.

District managers were the least likely to strongly

agree with the statement, while sales managers were

the most likely to strongly agree.

The final item in this section asked respondents to

react to the statement, “I would rather have one

major incentive contest as opposed to several small

contests.” The largest response category for this item

was strongly disagree. The distribution among the

other responses was fairly even.


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Sales agents, sales mangers and district managers

all had their largest percentages in the strongly

disagree category. Almost 24% of the sales agents

and sales managers strongly disagreed with the

statement, compared to 19% of the district

managers.

Willingness To IncreaseProductivity

On a 7-point scale anchored by “no additional effort

at all” and “a great deal of additional effort,”

respondents were asked to indicate how much

additional effort they would be willing to exert in order

to achieve each incentive reward. Their responses

are displayed on the right. They were most willing to

exert extra effort for cash, followed by sales

conference trips and personal vacation trips,

respectively. These differences are statistically

significant.


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Motivational Effect

Respondents were asked to indicate on a 7 -point

scale ranging from “motivating” to “not motivating,”

their reaction to each of the incentives. When simply

examining the “motivating” response category, sales

conferences had the highest rating. Almost 65%

indicated that they found the reward motivating. This

was followed by cash and personal vacation trips,

respectively.

One of the objectives of the present study was to examine differences in levels of organizational

commitment between employees who had received an incentive award in the past two years and those

who had not. These two groups are referred to as recipients and non-recipients. In this analysis, only the

achievement of cash, merchandise and conference trip awards were considered.

As illustrated in the graph on the right, the two groups

differed in their levels of organizational commitment.

The recipients indicated higher levels of

organizational commitment than did the non -

recipients. The difference between the two groups is

statistically significant.

The three recipient groups were then compared in

terms of their levels of organizational c ommitment.

The cash recipients indicated the highest level,

followed by merchandise and conference recipients,

respectively.


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Job Satisfaction Levels

Comparisons were also made between recipients

and non-recipients in terms of their levels of job

satisfaction. As was the case with organizational

commitment, the recipients indicated higher levels

of job satisfaction than did the non-recipients. The

comparison is graphically displayed in the graph on

the right. Recipients had an average of 3.83 on a 5-

point scale while non-recipients had an average of

3.45. These two groups are considered statistically

different.

Once again, comparisons were made among the

three recipient groups. Merchandise recipients

indicated the highest level of job satisf action. This

group was followed by cash recipients and lastly,

conference recipients.

The questionnaire included several items relating specifically to sales contests. The respondents were

asked to indicate their responses on a 7 -point scale ranging from “strongly disagree” to “strongly agree”

The largest percentage of respondents indicated

that they moderately agreed with the statement that

sales contests help/encourage them to increase

their sales volume.


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Almost 40% indicated that they moderately agreedthat contest rules are easy to understand.

Most employees responded that sales contests lastlong enough for them to achieve their objectives.

Very few employees, less than 2%, indicated that

they strongly disagreed with the statement that

sales contest help/encourage them to improve their

selling efficiency.


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Mixed responses were evident when respondents

were asked to react to the statement that they feel a

temporary lack of motivation after a sales contest.

The majority responded somewhere in between

strongly agree and strongly disagree. However,

only 4.9% selected strongly agree as their response

to this statement.

Almost 30% of the respondents indicated that they

moderately agreed that sales contests

help/encourage them to introduce new products.

Over 20% strongly agreed with the statement.

Most indicated that they moderately or strongly

agree that contests are announced sufficiently in

advance.

When asked to respond to the statement, “I would

like to see this company have more sales contests,”

over 40% selected strongly agree.


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A large percentage of respondents, 33.6%,

indicated that they strongly agreed that their overall

motivation increases during sales contests.

The majority of the respondents slightly,

moderately, or strongly agreed that they usually

encourage customers to purchase the products

being targeted in a sales contest.

Mixed results were found when respondents were

asked to indicate their response to the statement,

“During sales contests I change my normal selling

tactics’. The majority of the responses were in

between strongly disagree and strongly agree.


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A large percentage indicated that they moderately

or strongly agreed that sales contests

help/encourage them to find new customers.

The survey asked respondents to indicate how

often their district office sponsors sales contests.

Their response choices were “never,” “once a year,”

and “2-3 times a year.” Almost 85% indicated that

their district office sponsors a sales contest.2-3

times a year.

The same question was asked regarding their

regional office. Although the majority indicated that

the regional office sponsors sales contests 2~3

times a year, over 30% indicated that the contests

take place only once a year.


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On a 7-point scale ranging from “not very

motivating” to “very motivating,” they were asked to

indicate how motivating they find the different types

of sales contests. Company-wide contests and

district contests appear to be more mot ivating than

regional contests.

Sales Conference Trips

Those respondents who indicated that they had qualified for a sales conference trip in the past two years

were asked to indicate the extent to which they agreed or disagreed with several statemen ts. The

response set consisted of a 5-point format anchored by “strong disagree” and “strongly agree.”

The vast majority of the participants, 65.7%,

indicated that they strongly agreed with the

statement, “I thoroughly enjoyed the sales

conference.”

An identical number of sales conference

participants indicated that they either moderately

agreed or strongly agreed that they could not

imagine a better travel experience.


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When asked to respond to the question, “I do not

want to go on any more trips like that one,” almost

65% strongly disagreed.

An overwhelming majority of the participants,

82.7%, indicated that they wanted to qualify for

another sales conference. Less than 3% strongly

disagreed with the statement.

When asked to respond to the statement, “I was

disappointed with some aspects of the experience,”

45% indicated that they strongly disagreed with the

statement.


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When asked about the business meetings, 29.6%

strongly agreed that the meetings were worthwhile.

Further, less than 10% strongly disagreed with the

statement.

Finally, sales conference participants were asked to

indicate whether they would like to return to the

selected destinations. Comparisons were then

made between Amelia Island and the Bahamas.

Almost 50% indicated that they strongly agreed that

they would like to return to the Bahamas, compared

to 37.5% for Amelia Island.


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Summary

A. The returned questionnaires provided valuable information regarding the attractiveness and

effectiveness of the incentive rewards at the Company. The findings indicated that:

Sales conferences and personal vacation trips were the most attractive incentive rewards

to the respondents.

Travel rewards were followed in attractiveness by cash, merchandise, recogniti on and

status awards, respectively.

These findings suggest that in terms of attractiveness, travel rewards were superior to the other

incentive options. However, when asked to indicate how much additional effort they would be willing

to exert in order to achieve each of the incentives, the respondents were most willing to exert extra

effort to achieve cash, followed by sales conference trips and personal vacation trips.

B. The majority of the respondents reacted favorably to several general questions regardin g the

incentive program. Most indicated that the rewards are appropriate given the levels of performance

required to obtain them. When specifically asked about the requirements for the sales conferences,

many indicated that the requirements are too diffic ult. However, when asked to respond to the

statement, “I can perform at the levels required to win most Company rewards,” most either

moderately or strongly agreed. Almost 50% of the respondents indicated, however, that they strongly

agreed with the statement that employees should have more input into the incentive reward process.

C. Favorable responses were also evident when respondents were asked about sales contests.

Almost 65% indicated that they either moderately or strongly agreed with the statement, “ I

would like to see this Company have more sales contests”.

The majority indicated that their overall motivation increases during contests. Further, over

60% stated that sales contests encourage them to improve their selling efficiency.

D. Sales conference trips also received high ratings from the respondents.

Over 65% indicated that they strongly agreed with the statement, “I thoroughly enjoyed the

sales conference.”


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An impressive 93.4% indicated that they want to qualify for another sales conference.

Moreover, over half of the respondents indicated that they moderately or strongly agreed

that the business meetings were worthwhile.

E. Significant differences were found when comparing the levels of job satisfaction and organizational

commitment between recipients of incentive awards and non-recipients.

Recipients of the incentives indicated higher levels of organizational commitment and

higher levels of job satisfaction than did the non -recipients. However, assertively

concluding that the incentive program caus es increases in job satisfaction and

organizational commitment is unjustified given the non -experimental design of the study.

The results of this study and other similar studies indicate that a general trend in this

direction is evident, but causality is not clear.

Future Research Questions

The present study provides fertile ground for future research questions concerning incentive travel

programs. For example, the respondents claimed that incentive travel awards motivate them to increase

their productivity. It would be useful to determine if their perceptions are correct and if travel incentives do,

in reality, improve job performance. A study with an experimental design which employs a validated

measure of productivity improvement would serve to substan tiate the findings of the present study.

The results of the study suggest that there does appear to be some type of relationship between receiving

incentive awards and job satisfaction and organizational commitment. However, the relationship does not

appear to be dependent on one specific type of reward. This study lends no evidence to suggest that travel

rewards are superior in eliciting feeling of job satisfaction and organizational commitment. Yet, in terms of

overall attractiveness, the analysis indicat ed that the travel incentives were rated as the most attractive

incentives to the employees. Therefore, additional research is needed comparing travel incentives to cash

and merchandise incentives.

The present study did not examine intensity of involvement . Rather, respondents were simply grouped as

recipients and non-recipients. Therefore, if an employee had received at least one incentive reward,

regardless of value, in the past two years they were considered a recipient. Greater insight might be

gained by examining the relationship between intensity of participation and effectiveness of rewards. One

would predict that the more incentives an employee receives, the greater the positive effect. Future

research is needed to ascertain if this prediction is c orrect.


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This study focused primarily on the relationship between organizational rewards and attitudinal responses.

A study which examines behavior measures, such as absenteeism and turnover, would be useful in

determining the full impact of incentive tra vel programs. This type of quantifiable information would assist

in evaluating whether the program resulted in sufficient extra profit for the Company to cover the costs of

the travel program.

In sum, this study was an attempt to respond to the dearth of e mpirical research regarding the

effectiveness and attractiveness of travel incentives. Currently, intuition and informal feedback, rather than

empirical research, appear to be the most common forms of evaluation. This more thorough evaluation of

incentive travel programs will enable managers to tailor programs that more specifically meet the needs of

their employees, thus leading to a more efficient application of this motivational tool.


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Appendix A – Survey Instrument

Some of the incentive rewards in the questionnaire are currently not being offered at Liberty. Therefore, please use the descriptions ofthe incentive rewards provided below to assist you in answering the questions. Your anonymity will be insured. Please do not write yourname on this form.

Please use the following incentive reward comparisons when completing this questionnaire:1. Cash Awards - up to $1000 in cash2. Merchandise Awards - answering machines, calculators, cameras, pens, etc.3. Sales Conference Trips - annual trips to sales conference4. Recognition Awards - trophies, plaques, company rings, desk sets, publicity, etc.5. Personal Vacation Trips - weekend excursions or get-a-ways to selected destinations6. Status Awards - induction into special Liberty club, upgrades on business cards, automobile leasings, etc.

Section 1

Listed below are various incentive reward combinations. Select the one reward in each pair that is most attractive to you by circling thereward choice. Also please indicate by circling the appropriate number bow much more you prefer your choice in each of the pairs. Thefollowing example should serve as a guideline:

About the Same Very Much PreferredPersonal Vacation Trip vs. Cash 1 2 3 4 5 6 7

In this example, personal vacation trips are preferred over cash (since personal vacation trip is circled), and they are very much

preferred (since 7 is circled).About the same Very Much Preferred

Status vs. Recognition 1 2 3 4 5 6 7

Cash vs. Status 1 2 3 4 5 6 7

Cash vs. Recognition 1 2 3 4 5 6 7

Status vs. Personal Vacation Trip 1 2 3 4 5 6 7

Merchandise vs. Status 1 2 3 4 5 6 7

Cash vs. Personal Vacation rip 1 2 3 4 5 6 7

Merchandise vs. Cash 1 2 3 4 5 6 7

Merchandise vs. Personal Vacation Trip 1 2 3 4 5 6 7

Recognition vs. Personal Vacation Trip 1 2 3 4 5 6 7

Merchandise vs. Recognition 1 2 3 4 5 6 7

Assume that this organization uses only non-cash incentive rewards. Which incentive rewards would be most attractive to you? Please

circle your responseVery VeryUnattractive Attractive

Personal Vacation Trips 1 2 3 4 5 6 7

Merchandise Awards 1 2 3 4 5 6 7

Status Awards 1 2 3 4 5 6 7

Recognition Awards 1 2 3 4 5 6 7

Sales Conference Trips 1 2 3 4 5 6 7


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Section 2

Next, we would like to ask you some questions about your attitude toward the incentive rewards. Please check () the response thatbest reflects your attitude toward each of the four adjectives following questions 1 through 7.

1. I feel this company’s incentive rewards are:

desirable _____ _____ _____ _____ _____ _____ _____ undesirableextremely quite slightly neither slightly quite extremely

bad _____ _____ _____ _____ _____ _____ _____ goodextremely quite slightly neither slightly quite extremely

useless _____ _____ _____ _____ _____ _____ _____ usefulextremely quite slightly neither slightly quite extremely

motivating _____ _____ _____ _____ _____ _____ _____ notextremely quite slightly neither slightly quite extremely motivating

2. Receiving cash as a reward would be:





3. Receiving merchandise as a reward would be:





4. Receiving personal vacation trips as a reward would be:






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5. Receiving status awards would be:





6. Receiving recognition awards would be:





7. Qualifying for sales conferences would be:





Section 3

In this section we are asking questions concerning the ease or difficulty with which you are able to participate in the company’sincentive program. Please circle your response.

I. How much control do you have over whether you receive or qualify for the company’s incentive rewards?No Control At All Very Little Control Some Control Complete Control

2. Assuming that you have the required skills, your job is structured in such a way that you could win a reward.Strongly Disagree Neither Agree Agree Strongly AgreeDisagree Nor Disagree


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3. What is the likelihood that if you below? Please circle your response. (answer for each reward)

Very VeryUnlikely Likely



Cash Awards 1 2 3 4 5 6 7


Section 4

These questions deal with pressure you feel to quality for incentive rewards. For the following four questions, consider the person, otherthan yourself, who would most strongly influence your decision to select a reward option.

1. What is your primary relationship to this person? ____________ (i.e. your spouse, your manager, your co-workers, etc.)

2. To what degree would this person encourage you to participate in the incentive program at this organization? Circle the mostaccurate response.

Discourage Neither encourage EncourageParticipation nor discourage participation

3. To what degree would this person encourage you to qualify for each of the incentive rewards listed below? Please circle yourresponse. Answer for each reward.

Strongly StronglyDiscourage Encourage







4 Generally speaking, I want to do what this person thinks I should do. Check () the most accurate response._____ _____ _____ _____ _____ _____ _____Stronglydisagree

Moderatelydisagree

Slightlydisagree

Neither SlightlyAgree

ModeratelyAgree

StronglyAgree


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Section 5

Assume that there is only one type of incentive reward offered at this organization. For each of the rewards listed below, indicate howmuch additional effort you would be willing to exert in order to achieve that reward by circling the appropriate number. Answer for eachreward.

No AdditionalEffort At All

A Great Deal ofAdditional Effort







Section 6

Next, we would like to ask you some questions concerning the incentive rewards at this company. Please circle your response usingthe following scale:

SD MD SD N SA MA SAStrong Disagree Moderately

DisagreeSlightly

DisagreeNeither Disagree

nor AgreeSlightlyAgree

ModeratelyAgree

StronglyAgree

1. The rewards are appropriate given the levels of performance required to obtain them.SD MD SD N SA MA SA

2. The requirements for the sales conferences make it impossible for me to qualify.SD MD SD N SA MA SA

3. I can perform at the levels required to win most company rewards.SD MD SD N SA MA SA

4. The incentives reward those behaviors that are important to this organization.SD MD SD N SA MA SA

5. I feel employees should have more input into the incentive reward process.SD MD SD N SA MA SA

6. I would rather have one major incentive contest as opposed to several small contests.SD MD SD N SA MA SA

7. What other types of rewards would you like to see offered at this company?


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8. What is the greatest strength of the incentive rewards at this company?

9. What is the greatest weakness of the incentive rewards at this company?

Section 7

Listed below are a series of statements that represent possible feelings that individuals might have about the organization for whichthey work. With respect to your own feelings about this organization, please indicate the degree of your agreement or disagreementwith each statement by circling one of the seven alternatives below each statement. Use the following in responding:


DisagreeSlightly



ModeratelyAgree

StronglyAgree

1. I am willing to put in a great deal of effort beyond help this organization be successful.SD MD SD N SA MA SA

2. I talk up this organization to my friends as a great organization to work for.SD MD SD N SA MA SA

3. I feel very little loyalty to this organization.SD MD SD N SA MA SA

4. I would accept almost any type of job assignment in order to keep working for this organization.SD MD SD N SA MA SA

5. I find that my values and the organization’s values are very similar.SD MD SD N SA MA SA

6. I am proud to tell others that I am part of this organization.SD MD SD N SA MA SA

7. I could just as well be working for a different organizational as long as the type of work was similar.SD MD SD N SA MA SA

8. This organization really inspires the very best in me in the way of job performance.SD MD SD N SA MA SA

9. It would take very little change in my present circumstances to cause me to leave this organization.SD MD SD N SA MA SA

1O. I am extremely glad that I chose this organization to work for over others I was considering at the time I joined.SD MD SD N SA MA SA


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11. There’s not too much to be gained by sticking with this organization indefinitely.SD MD SD N SA MA SA

12. Often, I find it difficult to agree with this organization’s policies on important matters relating to its employees.SD MD SD N SA MA SA

13 I really care about the fate of this organization.SD MD SD N SA MA SA

14. Deciding to work for this organization was a definite mistake on my part.SD MD SD N SA MA SA

15. For me this is the best of all possible organization for which to work.SD MD SD N SA MA SA

Section 8

This section of the questionnaire is an attempt to learn your thoughts and views about your job. Please answer the followingquestions honestly and frankly. Record how you really feel, and not what you think we might like to hear. We are going to be askingyou questions about various aspects of your job. These aspects include pay, your work itself, supervision, coworkers and promotionopportunities. Please respond in terms of your present job. Please circle your response using the following scale:

VF F O I VI

VeryFrequently

Frequently Occasionally InfrequentlyVery

Infrequently

1. How often do you feel like actively looking for a better paying job?

VF F O I VI

2. How often do you feel like telling others that you have a good supervisor?

VF F O I VI

3. How often do you feel like spending your free time during the workday with your coworkers?

VF F O I VI

4. How often do you fed like complaining that your contributions aren’t appreciated?

VF F O I VI

5. How often do you feel like commenting favorably on the work performance of your coworkers?

VF F O I VI

6. How often do you find yourself daydreaming while at work?

VF F O I VI

7. How often do you feel like pointing out that there isn’t a close enough link between work performance and pay in yourorganization?

VF F O I VI

8. How often do you feel like avoiding your coworkers while at work?

VF F O I VI


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9. How often do you feel like sharing your personal thoughts with your coworkers?

VF F O I VI

10. How often do you think about looking for another job because this one is not secure?

VF F O I VI

For the remaining questions on job satisfaction, please use the following scale:

VL L N U VU

Very Likely Likely Neither Unlikely Very Unlikely

11. What is the likelihood that you will make an extra effort on your job to make your supervisor look good?

VL L N U VU

12. When you feel the need for some help with your work, how likely is it you would want to ask your supervisor for help/guidancebecause you feel he/she would be willing to help?

VL L N U VU

13. When you think about your pay, what is the likelihood that you feel angry or frustrated enough to consider saying something aboutit?

VL L N U VU

14. How likely would you be to describe your supervisor’s criticism as constructive?

VL L N U VU

15. What is the likelihood that you become so absorbed in your work that you lose track of time?

VL L N U VU

Section 9

These questions deal with the sales contests at this company. Indicate your response using the following scale:


DisagreeSlightly



ModeratelyAgree

StronglyAgree

1. Sales contests help/encourage me to increase sales volume.SD MD SD N SA MA SA

2. Contest rules are easy to understand.SD MD SD N SA MA SA

3. Most sales contests last long enough for me to achieve my objectives.SD MD SD N SA MA SA

4. Sales contests help/encourage me to improve my setting efficiency.SD MD SD N SA MA SA


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5. After a sales contest I feel a temporal)’ lack of motivation.SD MD SD N SA MA SA

6. Sales contests help/encourage me to introduce new products.SD MD SD N SA MA SA

7. Contests are announced sufficiently in advance.SD MD SD N SA MA SA

8. I would like to see this company have more sales contests.SD MD SD N SA MA SA

9. During contests often find my overall motivation increases.SD MD SD N SA MA SA

10. During contests I usually encourage customers to purchase the targeted.SD MD SD N SA MA SA

11. During sales contests I change my normal selling tactics.SD MD SD N SA MA SA

12. Sales contests help/encourage me to find new customers.SD MD SD N SA MA SA

13. Typically, how often does your district office sponsor sales contests?____never ____once a year ____2-3 times a year

14. Typically, how often does your regional office sponsor sales contests?_____never ____once a year ____2-3 times a year

15. Please indicate how motivated you find (or would find) the contests. Circle your response.

Not Very Motivating Very MotivatingDistrict Contests 1 2 3 4 5 6 7Regional Contests 1 2 3 4 5 6 7Company-wide Contests 1 2 3 4 5 6 7

Section 10

In this section we are asking you questions about your personal travel experiences. These questions do not include sales conferencetrips.

1. How many non-business (pleasure) trips of at lust one night have you taken over the past calendar year? Check (1) theappropriate space.

_____ no trips ____ 3-4 trips ____7-8 trips_____1-2 trips ____ 5-6 trips ____more than 8 trips

2. Does the number of non-business (pleasure) trips taken in the past calendar year represent a typical year for you?____Yes____No If no, do you typically take more or less non-business (pleasure) trips? Check () the appropriate space.

_____More _____Less

3. Would you prefer to take more or less non-business (pleasure) trips in the future? Check () the appropriate space._____More _____Less _____Same amount


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4. How important is non-business (pleasure) travel in your life? (Circle your response)Very Unimportant Neither Important VeryUnimportant Important

5. Have you qualified for a sales conference trip in the past two years? ____yes _____noIf no, please go to the next section (Section 11).If yes, please indicate the destination(s) and year(s) of the sales conference(s) you attended in the past two years.

Refer back to your last conference and indicate the extent to which you agree or disagree by circling the number that best describesyour reaction to each statement.

Strongly Disagree Strongly Agree

I thoroughly enjoyed the conference. 1 2 3 4 5

I cannot image a better travel experience. 1 2 3 4 5

I do not want to go on any more trips like that one. 1 2 3 4 5

I want to qualify for another sales conference. 1 2 3 4 5

I was disappointed with some aspects of the experience. 1 2 3 4 5

I would like to go back to that destination. 1 2 3 4 5

The business meetings were worthwhile. 1 2 3 4 5

Section 11

These final questions are to find out a little bit more about you in order to compare the employees selected for the survey with the generalpopulation in the company. For each question, write the appropriate number or check () the appropriate space.

What is your age? _____ years

What is your gender? ____mate ____female

Which best describes your ethnic background?____White (not Hispanic) _____Black or African American ____Hispanic American ____Native American____Asian American _____Other, please specify: ______________

How many years total have you worked for this company?_____less than 1 year _____2-5 years _____more than 6 years

What region were you in before the recent regional realignment? _____________________

What is your job status at this company?____sales agent ____sales manager ____district manager

What was your household income before taxes? (last calendar year)____ less than $29,999 _____ $70,000-$99,999____ $30,000-$49,999 _____more than $100,000____ $50,000-$69,999


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What is your current education level?____ some high school _____completed bachelors degree____completed high school _____other, please specify:________________some college

What is your marital status? ____married ___single

What was the employment status of your spouse? (last calendar year) ____no spouse ____wage earner ____non-wage earner

Do you have any children? ___no ___yesIf yes, how many? ___What are the ages of your children?____________________ (To the nearest whole year)

Have you received an incentive reward from this company in the past two years?_____ no_____yes. If yes, indicate the number of times in the past two years you have received (from this company) the incentiverewards listed below.

1. How many times have you received a cash award(s)?_____Total estimated monetary value of all cash awards received___________________

2. How many times have you received a merchandise award(s)?_____What were the merchandise items?______________________________________

3. How many times have you received another type of award(s)?_____(i.e., blue vase, certificates, plaques, etc)Please specify type of award(s) received______________________________

Thank you for completing this survey. Please use the space below for any comments you may have about the incentive rewards at thisorganization. Your comments are very valuable to us.


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Appendix B – Responses To Open-EndedQuestions

What Other Types Of Rewards Would You Like To See Offered At This Company?

82 respondents wanted more cash awards

58 respondents wanted weekend trips or get-a-ways

37 respondents wanted mini-conferences

37 respondents wanted the company to use time off or vacation days as rewards

20 respondents wanted more recognition awards (i.e., newspaper recognition)

15 respondents wanted more merchandise awards

IS respondents wanted monthly awards

11 respondents wanted car leasings

11 respondents wanted more trophies, plaques and rings

6 respondents wanted summer contests

5 respondents wanted service awards

3 respondents wanted children involved in the sales conferences

2 respondents wanted pace setter awards

2 respondents wanted contests where everyone wins something

2 respondents wanted education awards

2 respondents wanted longer stays at sales conferences

Other Rewards Mentioned

Business card upgrades

Rewards for total quality management, recruiting and manpower retention

More awards where there is a selection of things to choose from

Sates conferences overseas

Recognition of a good job by my bosses not just for the one year, but the duration

New agent of the year awards

The rewards we have are mainly for the elite of the company, make awards more accessible to the average people

President’s convention

More staff get togethers, such as fun day, office or regional gatherings for all

Golf outings

Increase percentage of agents who attend sales conference trips

Reward the consistent agents who do a good job year after year instead of rewarding new agents who make a big splash and are

gone the next year

Trips to main office in Greenville, SC

Involve all family members, more functions where spouses are invited

Birthday gifts to employees

Reward for long time employees

Rewards like we had 7-9 years ago

Reward on a local level


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Allow unmarried people to take friends to conferences

Tickets to bail games, concerts

Free lapse to qualified producers

On some of the contests you know who will win before they even start it

Sporadic, poorly planned, nothing to look forward to, nothing special, cheap

Older employees have a better chance than do newer ones

Everything is based on new business, no recognition for maintaining old business

Too much pressure put on agents without proper help

Inconsistency in distribution procedures

Many agents simply just do not care

Not fair due to different levels of district office atmospheres and manpower

There should be rewards given to spouses also when employees qualify because they are as much a part of this as the employee

because it takes sacrifice on both parties

It gives ulcers

The conference is not all that important to everyone, family stands in the way

Weekly reports kept in front of other employees

Not enough promotion on a month-to-month basis, there should be more things going on earlier in the year, the cash bash was

excellent in 1992 but we need to get off to a good start early

Those who are not standouts tend to be overlooked

The scores are accurate, but not received in a timely manner to keep everyone abreast of where they stand in relation to others in

the region

Winner should have an option of awards to choose from

Difficult to keep the motivation that has been originally started on the onset of the contest

It benefits some of the fly by night agents who are here today and gone tomorrow

What Is The Greatest Strength Of The Incentive Rewards At This Company?

38 respondents indicated that rewards increase motivation

35 respondents indicated that sales conferences are the greatest strength

28 respondents stated that the greatest strength is that everyone can win

21 respondents indicated that the reward themselves are the greatest strength

16 respondents indicated that rewards increase productivity

16 respondents indicated that cash awards are the greatest strength

7 respondents stated that the rewards instill a sense of competition

6 respondents said that rewards increase morale

5 respondents stated the rewards are fair and consistent

5 respondents indicated that they offer recognition benefits

Other Strengths Mentioned

Offers high producers recognition and state

It is possible to generate honest effort fur worthwhile rewards

There is none, company threatens to take away because of budget

The qualification levels make them an honor to achieve, prestigious


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Give temporary fix to a continuous problem

Keeping everyone posted by current reports

Something to shoot for besides your pay check

They do honor the above average performer

When they have a contest, there is motivation to work hard, however, there seems to be a let down after the contests

They follow through when promised as opposed to delays

Being awarded for a job well done

Personal preference to make as much as possible for agent and family

The length of time given to qualify, you have time to make up for a slow week if necessary

Greatest strength is to the company’s benefit

Makes you want to be one of the few instead of one of the many

It rewards those employees who have been with the company a long time

They reward the upper 10%

Encouragement, not pressure

If a person wins, person has done an outstanding job

Company usually goes first class

You are treated very well when you win

Company goes all out to give royal treatment

Company always has something going

The cooperation to help you achieve

Manager’s lunches

Builds confidence

Helps retain good agents

Increases self-esteem

What Is The Greatest Weakness Of The Incentive Rewards At This Company?

45 respondents stated that the requirements are too difficult

41 respondents stated that the rewards are too small

26 respondents said that they wanted more contests

7 respondents stated that a weakness is that conference trips are not available to people who start late in the year

6 respondents indicated that the incentives cause agents to take more risks than they normally would in order to achieve the rewards

6 respondents indicated that lapses prevent agents from winning

5 respondents said that the field not having input was a weakness

5 respondents stated that the time between winning and receiving the rewards is too long

4 respondents stated that the reward s/contests are not promoted adequately

2 respondents indicated that the incentives make them feel like a failure

Other Weaknesses Mentioned

None of the contests are service oriented, which is the most important requirement in our business

Rewards for winners take too long to deliver, length of qualifying time

Some of the contests tracking could be more efficient, greater planning is needed in setting up contests to make sure the company

is prepared to handle increased business


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Rewards have basically disappeared in last 7 years

Would like to see the leader’s conference deadline moved ahead

They lose their impact soon after they end

For management it is 100% agent driven, the management receives no leverage for his personal commitment to making sure his

district operates professionally and productively

Accuracy of credits

All district managers should be invited to the sales conferences

Taxes paid on awards

They don’t update standings in a timely fashion

They seem to create a lull, after the contests the agent is tired from putting out for the contests and takes a break, and then gets

behind

Not enough pep and encouragement from staff managers

Procedure used to determine winners causes a lot of stress

It ignores the fact that in a sales situation we are strongly dependent on a good economy

Too much pressure, when people push so much you get aggravated

Should be divided into parts, with the veteran agents in one group and the new agents in another, because the older agents will

win every time if there is no distinction

Rewards production only, nothing else is recognized

Too many small contests at different levels happening at the same time

System of winning is sometimes too complicated

Out of pocket expenses for sales conferences

© 1993 The Incentive Research Foundation

This material is copyrighted and the sole property of The Incentive Research Foundation. It is not to be

reprinted or reproduced in any way without prior written approval from The Incentive Research Foundation.

Please direct inquiries to:Frank Katusak, Executive Director

The Incentive Research Foundation304 Park Ave. South, 11th Floor

New York, NY 10010-4305

Telephone: 212-590-2518Fax: 212-590-2517

Email: [email protected]

www.TheIRF.org

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