However, the Maritz Poll also found that incentive programs, when done right, can be extremely impactful on employee performance and attitude.

• 66 percent feel that an incentive award program affects (strongly/somewhat) their future/continued employment at a company, with a stronger showing from younger employees. (74 percent of the 18-34 year olds and 57 percent 45-54 year olds)
• 68 percent agree that additional award opportunities would motivate them to be more productive at their jobs, with a stronger level of agreement from the younger employees (79 percent of 18-34 year olds and 60 percent of 45-54 year olds)

"The fact that more than half of respondents were unhappy with their incentive programs coupled with the greater importance of these programs to younger employees should be a major concern for companies. With younger workers more willing to change jobs, and the improving economy, companies are at risk of high turnover -- an issue that employers have not seen in several years," said Jane Herod, president of Maritz Incentives. "Many companies have not taken a look at updating their incentive program since before the economy began to decline. Now is the time to review and modify current incentive programs to keep them fresh and highly motivating."

How to Give Incentive Programs New Life

The survey also identified two of the most common pitfalls in incentive programs, lack of ongoing program communication and performance feedback and offering limited award options that may not suit the varied lifestyles of the employee base. For example:

• 44 percent of respondents receive communications regarding program guidelines only at the start of the program. Only 33 percent of those espondents said they were happy with their program versus 66 percent who received communications weekly.
• 39 percent of respondents received feedback regarding their progress within the program only at the very end of the program. Only 29 percent of those respondents said they were happy with their program versus 61 percent who received feedback weekly.
• 73 percent of respondents agree that they prefer to choose from a variety of awards rather than receive a pre-selected item.

Provide more frequent communication

"Frequent and effective communication in incentive programs is important to keep employees focused on their goals as well as to reengage them in the program," said Herod. "The best incentive program communications are targeted to the employee base and use different media to make the program fun and a little surprising."

Provide more varied award choices

A majority of survey respondents preferred a choice of awards in their incentive program over a pre-selected item. This is especially key for companies that are looking to address the generational, lifestyle and individual differences of their employees. Incentive programs can be developed to provide a range of choices including a group of awards selected for the demographics and lifestyles of the participants or highly flexible stored value award cards with points redeemable at a variety of selected retail, travel and entertainment outlets.

For example, Maritz Incentives has developed a variety of experiential packages directed at different lifestyles, such as golf clubs with a weekend trip to a golf resort complete with lessons.

"Understanding and capitalizing on the diversity within your workforce is critical in the 21st century," said Herod. "Building an incentive program that fits your employee base not only maximizes employee performance, but ensures your employees feel good about their company and stay with it."

This online Maritz Poll survey - conducted in September 2004 - featured responses from 1,002 randomly selected employed adult participants (502 male, 500 female) ages 18 - 65+ from throughout the United States.