Incentive programs are widely
used in South America, according to a survey of 150 South
American corporate executives that was conducted in late 2006 by AV
Business & Communication, an incentive and marketing firm based
in Buenos Aires, Argentina. More than 50 percent of the executives
polled said their firms offer incentive and motivation
Among the survey’s other findings of
* Sixty-five percent of respondents run
reward programs for clients, while 52 percent said they offer
incentive programs for their internal staff.
* The majority of firms that hold
incentive programs have between 101 and 500 employees, followed by
companies of fewer than 100 (29 percent).
* Forty-three percent of those polled
said their firm’s marketing department oversees incentive programs,
while 33 percent said the general manager or human resources
department is responsible for these programs.
* Fifty-nine percent of respondents
considered their incentive programs effective; 27 percent deemed
them very effective.
* Thirty-four percent of respondents
whose firms sponsor programs for employees said the main purpose is
to increase sales; 33 percent aim primarily to recognize
outstanding performance and bolster employee loyalty; and 11
percent said they sponsor programs to foster teamwork.
* Forty percent of those polled spend
more than $450 per participant for travel programs, including air
travel and hotel accommodations.
* Of the different types of rewards
offered (travel, cash, merchandise, gift certificates), 43 percent
of respondents said a combination of rewards is most effective,
followed by travel (23 percent), cash (17 percent), certificates
(14 percent) and merchandise (3 percent)