Organisation of incentive programmes

The actual process of implementing an incentive programme means that consider­able long-term planning is required to ensure chat corporate objectives are met in full. Some incentive programmes can last for up to a year, and it is not unusual for companies to be planning large-scale incentives two years in advance. The majority of incentive travel programmes, however, are planned up to 12 months in advance (O'Brien, 1997b).

The full incentive travel organisation package will involve the agency in under-caking an initial analysis of the client's business and the types of travel rewards most appropriate to their company. This phase is crucial. The key characteristics of the prize must be inspirational and aspirational, for if the agency fails to identify a destination that fully inspires the company's employees to make a considerable extra effort in order to win the chance to visit it, then the programme is unlikely to succeed.

Incentive travel agencies will therefore begin by establishing a shortlist of possi­ble destinations with the client. This will be based on employees' aspirations as well as other factors, such as budget and where the company's recent incentives were held. In order to achieve maximum effectiveness, a company's incentive reward sys­tem should be tailored to fit the needs and desires of its employees. To determine what employees both desire and need, a number of methods may be used. Shinew and Blackman (1995) identify these as:

• administering a structured data-collection instrument, such as a questionnaire containing both open- and closed-ended items;

• systematically observing employees' reactions to different rewards;

• asking the employees directly which rewards are most valued.

Variety is an important factor. US companies tend to rotate incentive destinations to maintain participant interest, e.g. London may only be considered a suitable destination for a major incentive once every four years (O'Brien, 1997a).

Organising the incentive programme will also involve at an early stage conduct­ing research into whom, within the company, should be targeted for motivation by the prospect of winning the travel award. Often, the result of the research will be that it appears appropriate to offer more than one incentive product to a company's employees. Shinew and Backman (1995; p.292) explain why:

Offering a single set of rewards to an entire workforce potentially reaches only a portion of the target group. Therefore, the motivational component ofincentive programmes may be maximised by offering reward options targeted toward specific segments of the workforce. For example, oprion one may be a trip to Disneyworld that involves both spouses and children...whereas a second option for childless employees might be a trip to Paris.

Multiple-tier awards is an alternative strategy. This approach encourages limitless performance levels and, therefore, hears hroad motivational appeal. For example, level one may award the incentive trip to the qualifier whereas level two includes rht qualifier and his or her family. Another possible application would be where level oik is a domestic trip while level two is an international trip. The multiple-tier approach motivates the employee who has already qualified for the trip to continue striving for the next objective.

The same authors point out that the identification of specific variables that may influence an employee's level of attraction toward particular rewards has only limited attention in the literature on incentive travel. One of these variables is almost certainly the attitude of the employee's spouse or partner towards the incen­tive programme and the prizes available to winners.

The vast majority of employees interviewed by Shinew and Backman (1995) indi­cated that the support of their spouse/partner was a major consideration to them in their decision as to whether to participate in their employers' incentive programmes. These findings suggest that management might wish to consider the influence of spouses when planning an incentive programme. For example, when attempting to determine the attractiveness of potential incentive travel destinations, the company may benefit from surveying both the employees and their spouses. Further, sending travel brochures home with employees may serve to increase the incentive programme's motivational effect. Moreover, there may be greater family tolerance for the long hours needed to achieve the incentive reward if there is enthusiasm for the trip being offered.

A further advantage of including award-winners' spouses and partners is emphas­ised by one incentive travel organiser based in Monaco (Collis, 2000; p.115):

The partner helps to push the executive to achieve his or her targets if they know they're going to Monte Carlo as well. If the other half is along, it makes for a much more sane and balanced approach. It's the difference between dancing the night away and drinking the night away, which is what happens when you have all men together. We had a nightmare experience with an incentive for the business unit of a company that didn't bring partners. It was an office party for three days. Not a good idea!

In designing the actual award; therefore, the agency must also advise the client company on whether the travel is to be undertaken by the winning employees only or whether it should include others, notably their partners and other members of their families. In his survey of the European incentive market, O'Brien (1997b; p.B-20) noted that only one-quarter of all trips were limited to employees only. 'In most cases, the winner's spouse or partner is permitted to travel with him/her, and in 20% of cases, companies also invite other family members as well. Family members are invariably paid for by the company.¹

Once the actual incentive programme prize has been agreed upon, the agency will then carry out a promotional campaign within the company to advertise the competition and the prize. The rules of the competition will be announced to those members of staff selected to participate. Throughout the duration of the incentive programme, the agency will monitor employees' performance and peri­odically send them reminders of the desirability of the prize in order to continue to spur them on to greater achievements. These reminders are known as 'teasers', and may take the form of brochures or photographs of the destination being sent to employees at work or to their homes. Even more creative teasers have been used. An agency once sent small bottles of sand to participants to remind them that the prize they were competing for was a trip to an exclusive oasis resort in the Sahara. The final task to be undertaken before the actual trip is to choose and nominate the winners. Announcing the winners is often done at an in-company event, such as a reception or lunch, in order to make maximum impact.

Parallel to these activities, agencies will design and plan the details of the actual trip. The following section examines the crucial question of what the successful incentive trip should be.