Why organize an incentive?

In times of crisis, budgets are cut significantly. This is very apparent in every sector. The MICE sector (Meetings, Incentives, Conferences & Events) is no exception. Indeed, this market may even have been harder hit than many others. This is not surprising when you consider that most companies regard an incentive as a cost rather than an investment.

Earning back your investment

I believe that organizing an incentive pays for itself. But I do wonder how I can prove this to you. For instance, is it possible to measure the ROI (Return on Investment) for an incentive? Research by the American Incentive Research Foundation (http://theirf.org/research/7-incentive-travel-stats-everyone-should-know/1386/) shows that the turnover of companies that organize incentives can be as much as three times higher than the turnover of other companies. In addition, they contend that a well-chosen and executed incentive travel programme can increase sales productivity by up to 18% and can achieve an ROI of 112%.

Work-related expenses scheme

What do guests get out of an incentive? First of all, an invitation is a mark of appreciation. During the incentive, you get to know suppliers and their products better, as well as your competitors and colleagues, and in a relaxed setting. Of course this depends on the specifics of the incentive. A well-organized incentive can ultimately generate more turnover for the supplier. The goodwill factor plays a role here. It is also essential that the supplier follow up on an incentive and remain in personal contact with the customer. In addition, it is important to solicit advice on what is and is not possible within the new work-related expenses scheme in the Netherlands, so that you do not have to pay more in taxes than you expect.

Advice

Provided it is well organized and fits the target group, organizing an incentive is worthwhile. My advice is to leave the organization of the travel to a professional. They can advise you on the work-related expenses scheme and relieve you of worrying about the quality of the various components of your travel. You can then focus entirely on the professional content of your event. After all, that is your area of expertise.