IMA Statement: GSA Scandal Is About Mismanagement, Not Value of Incentives

April 12, 2012 - Naperville, IL – Recent media reports about questionable spending by the General Services Administration (GSA) on its “Hats Off” incentive program seem to imply that incentive programs of any kind are excessive and unjustifiable. While there is no question that Congress has the right to probe the agency’s use and management of the incentive program, especially when it is part of broader reports about the mismanagement of funds by the officials in charge, the news reports all too often impugn the very use of incentives as a way to improve employee behavior and stimulate productivity.

The reality is that properly designed and managed incentive programs can be very effective.

Research shows that employees can upgrade their performance by as much as 27% when they are motivated by incentive programs.

Research conducted by the Incentive Federation and the Incentive Research Foundation has found that incentives can:
o Increase Productivity
o Boost Morale
o Enhance Quality
o Foster Teamwork
o Decrease Absenteeism o Improve Work Habits
o Ensure Safety
o Reward Loyalty
o Attract & Retain Quality Employees
o Engage Participants

Multiple studies have also found that organizations with higher than average employee engagement can realize up to:
o 27% Higher Profits
o 50% Higher Sales
o 50% Higher Customer Loyalty
o 38% Higher Productivity o 20% More Revenue Per Employee
o 16% Market Share Improvement
o 57% Higher Shareholder Returns

The important thing to realize is that the problems at the GSA revolve around the lack of proper management and oversight and are not a valid indictment of the value of incentive programs.
--Statement attributable to Karen Renk, CAE, Executive Director, Incentive Marketing Association
Business improves when employees and customers are recognized, rewarded, and engaged through effectively structured programs with defined goals and proven returns. The Incentive Marketing Association (IMA) is comprised of the companies who are leaders in the incentive industry. IMA provides education, resources and research to promote the use of incentive programs to the business community and is the umbrella organization for the Global Incentive Council (GIC), the Incentive Gift Card Council (IGCC), the Incentive Manufacturers & Representatives Alliance (IMRA), the Incentive Travel Council, the Performance Improvement Council, the Recognition Council, IMA-Australia Council, IMA-Canada Council and IMA-Europe Council. More information about IMA and the incentive marketplace is available at http://www.incentivemarketing.org/.

Business improves when employees and customers are recognized, rewarded, and engaged through effectively structured programs with defined goals and proven returns. The Incentive Marketing Association (IMA) is comprised of the companies who are leaders in the incentive industry. IMA provides education, resources and research to promote the use of incentive programs to the business community and is the umbrella organization for the Global Incentive Council (GIC), the Incentive Gift Card Council (IGCC), the Incentive Manufacturers & Representatives Alliance (IMRA), the Incentive Travel Council, the Performance Improvement Council, the Recognition Council, IMA-Australia Council, IMA-Canada Council and IMA-Europe Council. More information about IMA and the incentive marketplace is available at http://www.incentivemarketing.org/.

1601 North Bond Street, Suite 303
Naperville, IL 60563

This release was published on openPR.