Incentive Program Effectiveness: Reflecting on Key Factors

How can the distribution frequency of rewards affect the effectiveness of an incentive program?

A) The rewards for success are based on employee input. B) The program is directed toward attaining specific goals rather than general goals. C) The rewards for success are distributed once a year. D) Goal attainment is determined using objective measures only.

Final answer:

The factor that would reduce an incentive program's effectiveness is when the rewards for success are distributed once a year.

When rewards for success are distributed only once a year, it reduces the immediacy and frequency of positive reinforcement, which is crucial in motivating employees. Regular and timely rewards are more effective in encouraging employees to continue performing well.

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