“Success is dependent on effort.”
– Sophocles (497 BC – 406 BC)
Individual Incentive Programs
- Low administration cost
- Easy to manage
- Simple to understand
- Frequent and consistent
- Achievable and motivating
- Flexible and personally rewarding
- Appropriate for teams of 1 to over 1000
- Produce positive business results
Group Travel Incentive Programs
Higher Cost
Top team members or entire divisions may be away at the same time while participating in group incentive programs, resulting in lost opportunity costs. Additionally, group travel involves multiple suppliers, from air to ground transport, hotel to entertainment. Coordinating all components is time consuming and costly.
Complicated to Manage
Managing a group incentive program is logistically challenging, with multiple vendors to organize and team members to involve.
Infrequent
Group incentive programs often only occur annually, whereas Individual Incentive programs are redeemed on a continuous basis, producing longer periods of heightened motivation.
Inflexible Scheduling
A group incentive program must operate over a specific set of dates committed to far in advance. The timing of group incentive programs may not be ideal for all recipients’ life commitments, or company’s business developments.
Higher Risks
There are significant costs associated with group incentive program postponement or cancellation, including attrition and cancellation fees. Unexpected travel issues such as extreme weather, health advisories, or political unrest can expose your entire team of top performers to safety concerns.
Is the Reward a Reward?
Does a group incentive program truly motivate and inspire all potential participants? Each individual has specific interests and is faced with demanding schedules. More and more people desire customized experiences. Creating a group incentive program that is appealing to all demographics and stages of life is difficult to achieve.
