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
programs.
Among the survey’s other findings of
interest:
* 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)