Conference Report:

Abstract

A new, in-depth research study into what makes group incentive reward programs successful found that site variables have more than twice as much impact on how well employees respond to a group incentive reward program as do plan variables themselves, although both are important. Site variables include such factors as top management's attitude toward the group incentive reward plan at each site, the enthusiasm for the plan at each site, and methods of plan implementation at each site. This is one of the key preliminary research findings on group incentive reward programs from the most recent CARS research project. These findings were presented by Susan Murphy (SRM, Inc.), Elizabeth Hawk (Sibson and Company), and Jerry Mc Adams (Watson Wyatt) at the American Compensation Association's annual conference in Orlando, Florida, on May 7. "CARS" is an acronym for an ongoing ACA research project into reward strategies sponsored by the Consortium for Alternative Reward Strategies research. "CARS IV, Group Plan Effectiveness: Case Study Research," consisted of an in-depth study of group incentive plans in 11 manufacturing groups in four companies. The study sought to determine the effect of the plans on all levels of employees, on business performance, and on organizational culture. The methodology included more than 70 management interviews, 1,200 employee surveys, and 22 employee focus groups, as well as quantitative data.