Order Status | Customer Service

Incentives and the Economy - Part 2

In today's uncertain economy, layoffs are constantly making headlines – and the personnel impact of those cuts can reach far beyond the employees whose jobs are eliminated. Layoff aftershock can cause remaining employees to look for other job opportunities and jump ship. How can downsizing companies stem the resignation temptation? American Express Incentive Services set out to find the answers by sponsoring an "Achieve More" survey*. Here's what we learned when employed Americans were asked:

"If your company laid off a significant portion of its work force, but your job was spared, how likely would you be to seek other job opportunities outside the company?"

• 33 percent said "very likely"
• 22 percent said "somewhat likely"
• 14 percent said "somewhat unlikely"
• 27 percent said "very unlikely"
• 4 percent said "don't know"

But then, those same participants were asked, "If your employer told you after the layoff that the company was committed to keeping you and reassured you of your bright future there, how likely would you be to seek other job opportunities?"

• 37 percent said "very unlikely"
• 23 percent said "somewhat unlikely"
• 26 percent said "somewhat likely"
• 12 percent said "very likely"
• 3 percent said "don't know"

Prove It

Verbal reassurance may convince some employees of the company's commitment, but for those who need proof, what can employers do? AEIS asked, "Which one of the following incentives provided by your employer would best demonstrate its commitment to keeping you?"

• 42 percent said "trip/prepaid card"
• 13 percent said "something else"
• 13 percent said "don't know"
• 12 percent said "higher wages"
• 10 percent said "catalog or company logo merchandise, stock or job contract"
• 7 percent said "bonus, cash"
• 4 percent said "benefits"

Key Learning

A soft economy is no time for employers to downsize their incentive use. Verbal reassurance, coupled with prepaid reward cards, demonstrates the employer's commitment to keeping employees – and gives employees the freedom to choose their own rewards, including travel.

The bottom line? Personalized incentives pay off.

*The AEIS "Achieve More" survey polled a random nationwide sample of 588 employed adult Americans. The study was conducted by Wirthlin Worldwide. The margin of error is ±4 percent. Responses add up to more than 100 due to rounding.

Incentives and the Economy - Part 2 10 Benefits of Prepaid Cards The Incentive Effect Incentive Industry News Case Study: Dollar Rent-A-Car Upcoming Events

Read more

Read more

Regulations | Trademarks | Privacy Statement | Contact Us | Card Balance

Copyright © 2001-2007 American Express Incentive Services, L.L.C. All Rights Reserved.
DirectSpend^SM is protected by U.S. Patent Numbers 5,689,100 and 5,956,695.