Incentive - May 2008 - (Page 29)

Make a S e c o n d - H a l f Ra l l y By Rob Carey back as mid-2007, more than a few annual incentive programs that were supposed to come to fruition in early 2008 were canceled. “We’ve heard some companies say, ‘Look, we are just not making our numbers, so we are going to postpone things until next year,’” says Pirjo Niemi, senior vice president of operations and purchasing for Newport Beach, Calif.–based incentive and meeting management firm Ambassadors. “Their rationale is that rather than do a compromised, lower-budget program now, they’ll wait until next year to do a program that upholds the standard of quality they’ve always had. Public companies are under more pressure in this area. We’ve seen some of them pay hefty cancellation penalties on programs earlier this year, but they felt that was the best course of action at that time.” For performers at those firms who were on track to reach a top-tier goal and its corresponding award, Niemi says that some will likely be paid cash or be given a few alternatives, and possibly also receive some credit toward the 2008 goal that triggers the 2009 award. But “our clients often say that they will handle these contingencies inhouse, so they don’t come to us much for ideas on alternatives,” she adds. Regardless of whatever internal damage control a firm does, cancellation is a risky move. “Yanking a program could have a much longer-lasting effect than you expect. You don’t want to run the risk of sending your best performers to a competitor in order to save money in the short term,” says Paula Godar, director of brand communications for Maritz Motivation in St. Louis. “The incentivemag.com Here’s how incentive experts say firms can adjust their programs to get the most out of 2008 W e’re coming up on the halftime of this year, and Corporate America has a heck of a struggle on its hands. Clearly, 2008 is not shaping up to meet the expectations of many executives. In this weak economy, clients’ budget cutbacks and inflation have joined your competitors as obstacles in the path to a profitable year. But as we approach the end of the first half, there are a few things that you should—and should not—do with your incentive programs so that July through December will be productive and positive at your firm. Maintaining financial health, keeping morale high, and minimizing turnover can be your legacy for 2008, if you take heed of the following advice from industry veterans. And fortunately, none of it requires telling your team to “Win one for the Gipper.” Because many companies started to feel the effects of the slowing economy as far | May 2008 | Incentive | 29 http://incentivemag.com

Table of Contents Feed for the Digital Edition of Incentive - May 2008

Incentive - May 2008 Contents Editor's Note: Turn to Incentives in Hard Times In The News: At IMRA Conference, Trade Show Talk; In Utah, Team-Building Trauma Cover Story: Can Incentives Save the Media Business? Incentive Interview: Our New Columnist, Christi L. Gibson Case Study: Architecture Firm WESKetch Builds a Recognition Plan Incentives in a Recession: Advice on Adjusting Your Plan Office Bullies: The Scourge of the Workplace Can Be Reined In Original Research: Incentive Sales IQ Report Recognition@Work: Stop Driving Your Top People Away Incentive Primer: Ways to Foster Creativity in Your Organization Travel News Puerto Rico: Shining Star's Trendy Makeover Mexico: Cancun and Cabo Still Have It Potentials Here and Now Luggage and Leather Goods Gift Cards: F&B Advertiser Index Last Word: Stanley Bing Gives Wimpy Bosses a Nuggie

Incentive - May 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.