Incentive - December 2008 - (Page 32)

TRAVEL Spas to the Rescue PAGE 36 French Polynesia PAGE 40 Doctors and planners agree: In these stressful times, spas are needed more than ever The idyllic beaches and crystal-blue waters of Tahiti, Bora Bora & Moorea are a perfect incentive destination For Insurance Brokers, Fewer Programs Between tough financial times and bad press over AIG, programs face the knife By Leo Jakobson I t is fairly clear by now that the fallout of negative publicity over American Insurance Group’s ill-timed incentive program is forcing other companies, particularly those taking federal bailout money, to reduce or eliminate their incentive travel programs. The effect of those cancellations on the agents and brokers who worked hard to qualify for those incentive programs will take longer to understand. “There have been several announcements since AIG,” says Patty Lombard, a spokes-person for the Insurance Brokers of America West, an industry organization. Pointing to Hartford as one of those companies, she says, “Incentive packages are nice, but [IBA West’s members’] concern is for the overall health of the industry.” “I haven’t had any incentives canceled recently [because of AIG], although I have heard of Incentive it,” says Jim Armitage, vice president of Arroyo Insurance Services in Arcadia, Calif. “You are rewarding the best salespeople for good performance. It’s not any different for dealers of Ford or Honda. To an [insurance] agent or broker, when an incentive program gets taken away, there is less incentive to work hard.” And, he adds, these programs motivate more than just the winning brokers to work harder. That said, Armitage agrees that AIG’s $442,000 program at the St. Regis Resort Monarch Beach, which took place just days after the firm accepted an $85 billion federal bailout, sounded like “a more extravagant event than most.” But he adds, “Who were they entertaining, how much business had they brought in?” That very point has Edward G. Wright, president and CEO of W.J. Cox Associates, a brokerage firm specializing in the forest products industry, “ticked off at [his] compadres in the insurance industry for picking on AIG,” he says. “They know incentive programs have been cost-justified.” More than that, people worked hard to win them, says Michael Ruege, executive vice president of Atlanta-based incentive house USMotivation. “People earned these results. Saying, ‘We are not going to reward you,’ is the worst thing you can do.” Clients are continued on page 33 32 | | December 2008 | incentivemag.com http://www.incentivemag.com

Table of Contents for the Digital Edition of Incentive - December 2008

Incentive - December 2008
Contents
Editor's Note
Headlines
Cover Story: Motivating Their Own
Incentive Interview
Case Study: Cargill's Course
Travel News
Cruises: Saving Without Sacrifice
Spas to the Rescue
Field Report: French Polynesia
Potentials Here and Now
Spa Products
Research: Corporate Gift IQ
Gift Cards: Dining & Entertainment
Advertiser Index
Last Word: Can You Be Specific?

Incentive - December 2008