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Attendance Numbers at the IRF's 16th Annual Incentive Invitational Hint At Rosier Times Ahead

If numbers mean anything, and they of course do, the 170 buyers, 145 sponsors/hosts and 85 reporters, guests and event organizers in attendance at the 2009 IRF Invitational hint at rosier times ahead for the incentive industry.  By any measure, but especially during these challenging economic times, the 16th Annual Invitational, headquartered at the Westin Mission Hills Resort & Spa in Palm Springs May 13-17, was a stunning success.  The annual Incentive Invitational is the foremost fundraising event for incentive industry research.  As a key networking event, it clearly shows the continuing importance and value of face to face interactions.  As Mike Macleod, Director of Sales & Marketing, Westin Hills Resort & Spa said  "We were thrilled to be the host property for this year's event…I can say that the event was both a tremendous success and a preview of what promises to be a very beneficial investment. We were pleasantly surprised that the IRF and The Opus Group were able to deliver the quantity and distinction of this year's attendees given the state of the world economy in 2009…and an executed group agreement, for new business, eighteen days after the event ended.

Here's what other attendees said about their Invitational experience:

"In today's extremely challenging environment for our industry the opportunity to meet so many folks and hear firsthand how they are adapting to the new reality of the day was very useful to me."  Mike Parent, Sr. Account Executive, BI

"In these difficult economic times it is now more important than ever to have the opportunity to network with industry leaders to hear different views on the state of the industry and to hear the positive outlook that we all enjoy. We are a very strong industry and if we work together we can influence the media and political leaders to understand the great value we bring the country with jobs, revenue and tax dollars. The roundtable discussions were great and I hope that this is something that you will continue at future Invitationals."  Joe O'Brien, Executive Vice President.

Invitational Roundtable Wrap-Up

Challenges and opportunities were the focus of discussion at this year's IRF Invitational roundtables, May 13 -17 in Palm Springs.  One major take away from these sessions was the determination of attendees to persevere, regardless of economic realities.  It is this heartfelt commitment to take action, to adapt and to grow that bodes well for the industry's future.

Executives gathered to discuss the umbrella topics "Incentive Travel:  Making the Business Case in the "New Economy" and "2009 – The Year of Change (and adaptation) for the Incentive Industry."  Here are some highlights…

Making the Business Case. The current economic environment set the tone for the discussions.  The majority of attendees (53%) feel the "new economy" is more than a typical downturn, and there was discussion about "justifying" incentive programs.   As budgets are slashed and government and the media raise questions about the appropriateness of incentive programs, the attendees have experienced a greater need to validate the return on investment (ROI).  In fact, over 65% of the attendees agreed that:  "Making a business case for incentives in today's economy is critical to our industry."  The need for this greater emphasis on ROI by everyone in the industry was not limited to just the program metrics – i.e., sales or revenue increases.   There was also considerable discussion on the need for greater emphasis, research, and education on the economic impact of incentive programs.   

Industry Adaptation. The need for the industry to adapt to this new economy was underscored by the over 78% who agreed that: "The degree of industry change in past year has been extraordinary."   Fifty-eight percent of attendees agreed that their companies had already adapted to the change.   However, more than  40% felt their companies had not adapted.  Areas of "adaption" include:

• Refocus on what the incentive travel participants "really want" (versus doing the same thing every year).
• Investigate how to add corporate social responsibility (CSR) to the incentive program.
• Include program measurements to ensure programs achieve objectives and that a program's value is captured and communicated, especially to C-suite executives.

Pulse Survey Shows Incentive Travel Remains a Preferred Business Strategy

Despite the ongoing impact of the economy on incentive travel programs, a majority of incentive practitioners are unlikely to switch from travel incentives to another program initiative.  That's the major finding from a recent survey from the IRF entitled Incentive Industry Trends Outlook 2009.  The survey indicates that while incentive travel programs will indeed be altered due to budget constraints, their utility as a strategic business tool persists.  Survey answers reveal a shift in award selection decisions in merchandise programs and budgets for incentive travel programs and note the political landscape's impact on the industry, among other findings.   "Amid the economic downturn and intense public scrutiny of motivation and awards programs, savvy business professionals continue to realize the power of incentives to help achieve business goals, even when they may need to alter programs due to cutbacks," says Rodger Stotz, chief research officer of the IRF.  "These findings support the experience of those who use incentives that incentive programs are results-oriented, cost effective, useful for multiple applications and highly measurable."

Comprehensive Analysis of Engagement Research Conducted by Enterprise Engagement Alliance

A new report from the Enterprise Engagement Alliance entitled The Economics of Engagement provides comprehensive analysis of research in the emerging field of "Enterprise Engagement" and offers how-to information on recently developed benchmarking tools that can quantitatively measure the benefits of employee and customer engagement. These measurement tools demonstrate the bottom-line impact of enterprise engagement, both to corporations and to the economy as a whole, using financial language that senior executives, investors and economists are accustomed to. Among other things, the report reveals:

1. The cost of employee disengagement (i.e., $350 billion lost annually in productivity, accidents, theft and turnover);
2. Evidence of the link between employee engagement and better performance;
3. Proof that the financial performance of companies improves when employee engagement is a priority;
4. Case studies of companies--such as IBM, Sears, and Costco—which, drawing upon before and after data, have benefited demonstrably from enterprise engagement;

The Enterprise Engagement Alliance is a coalition of companies and associations, including the IRF,  dedicated to promoting the importance of engagement – a strategic business philosophy that encompasses loyal customers, a committed, productive workforce, channel partners and, most important of all, management that understands the importance of people to an organization's financial success.  For more information go to info@enterpriseengagement.org.

Research Gem:  How to Determine the Impact of Incentive Travel Programs

This timely study, from the IRF's research archives, demonstrates the power of incentive travel...

In a 2001 study entitled Determining the Return on Investment of Incentive Travel Programs, researchers surveyed executives responsible for designing incentive programs, as well as program winners," to provide a vivid picture of incentive travel program effectiveness," and to address both tangible (sales, market share) and soft (morale, customer loyalty) business goals. Researchers developed a Program Measures ROI template to provide users with an easily applicable tool to calculate financial and program impact as a result of the incentive campaign.  Research was conducted by: Marion Joppe, Ph.D. & David Martin (D.B.A. School of Hospitality and Tourism Management), Ryerson University; In Collaboration with Duff Shaw, CITE, and SITE Canada.  To download the full report, go to www.theirf.org

In the Spotlight: IRF News Round-Up

From time to time, we take a look at the IRF's presence in the media.  Here are just a few recent highlights.   For the full slate of press coverage, click here.

Meetings and Conventions Magazine
An article in Meetings and Conventions Magazine examining "why motivation still matters" cites the IRF study "The Benefits of Tangible Non-Monetary Incentives."

Meetingsnet.com
An article on Meetingsnet.com reported on a study, by the IRF, of six industries that historically have used incentive travel.

Successful Meetings/MeetingNews
Successful Meetings/MeetingNews article entitled "Study: Incentive Providers Should Help Clients Measure ROI," features IRF research.

The Professional Travel Guide
The Professional Travel Guide reported on two IRF surveys.

The IRF is routinely in contact with various industry press outlets as part of our media relations program. All corporate motivational meetings and/or incentive program planners should let us know if they would like to discuss incentive trends and issues with the media, which can help create press coverage for your organization. For more information, please contact Jon Lieb, IRF's media liaison, at jlieb@sellingcommunications.com.

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