The survey results, according to PSMJ, show that most firms are not very satisfied with their overall incentive/bonus plans and consider cash incentives to have little effect on staff motivation.
However, whether or not plans actually improve motivation, reward desired behavior, or help to achieve a firms’ goals and objectives seems to have little to do with administrator’s overall satisfaction with incentive compensation bonus plans. Ease of administration, on the other hand, ranked the highest, according to PSMJ director of research, William F. Fanning.
Other findings indicate the typical design firm administers, and considers it necessary to administer, more than one incentive plan, with most firms managing two or three plans. Nearly 100% of firms provide cash bonus plans, and nearly one-third provide non-cash incentives. The most popular non-cash incentive programs reward staff with additional time off and dining out with a spouse at the company’s expense.
Publication date: 07/09/2001