5 REASONS WHY COMPANIES OFFER INCENTIVES DURING ECONOMIC UNCERTAINTY

1.  LOW FIXED COSTS.  Approx 20% of an incentive program budget is spent on fixed costs (administration, training, systems, etc.) -- that means that 80% of the budget is spent rewarding your audience.  And that 80% is not spent until goals are met.

2.  EASY TO TARGET.  A well-structured program targets the exact audience you want to reach.

3.  EASY TO MEASURE.  Effectively structured programs identify measurable outcomes that will help you to determine the success of the program and position your results to Management.

4.  FLEXIBILITY.  It's easier to affect change when the audience is defined and a good communication program is in place.  On-line programs make it easy to adapt to results or findings as you go.

5.  SHORT-TERM AND LONG-TERM RESULTS.  Programs based on research and best practices poduce residual value.  The behaviors promoted during the program generally have long-standing value to the organization.

The Incentive Performance Center (IPC) is a non-profit source of information on the benefits of motivating employees with non-cash incentives.