IRF Study Reveals High Rates of Change to Incentive Program Design to Comply with U.S. Federal Regulations
WASHINGTON (PRWEB) August 01, 2019 -- The Incentive Research Foundation is pleased to announce the release of its signature study 2019 U.S. Federal Regulations and Non-Cash Awards. The IRF’s research into program owners’ understanding of U.S. regulatory and tax requirements reveals a high rate of change in incentive program design due to a perceived need to make accommodations to comply with regulations.
The IRF’s survey generated 398 responses from decision-makers for non-cash rewards programs representing a cross-section of US businesses with $5 million or more in revenue. The four business sectors reporting were Automotive / Manufacturing, Pharmaceutical / Healthcare, Technology/ Telecommunications, and Financial Services.
“High awareness and knowledge of regulatory and tax requirements strongly correlated with greater rates of change in program design across all sectors among firms of all sizes,” said Andy Schwarz, Vice President, the Incentive Research Foundation. “However, when presented with specific scenarios, respondents frequently identified legal and regulatory issues where none existed, raising the question of whether the high rate of change in program design is always necessary to comply with U.S. regulatory and tax requirements."
Additional key findings discussed in 2019 U.S. Federal Regulations and Non-Cash Awards include:
• Program owners’ overall confidence in the ability to identify regulatory and tax requirements was high, with 77% of respondents being “very confident.”
• To comply with regulatory or tax requirements, 39% of firms eliminated at least one program.
• Knowledge of regulatory and tax requirements was relatively higher for Financial Services firms and Technology/ Telecommunications firms – and relatively low for Automotive / Manufacturing
• Compliance practices are more fully developed at Technology / Telecommunications firms and Financial Services firms, while Pharmaceutical / Healthcare firms do not yet have fully developed and implemented compliance practices.
• Senior executives and finance departments are more likely to be involved in the review and approval of changes to non-cash rewards and programs.
• Almost half of firms (47%) shifted spend from cash incentives to non-cash rewards to comply with regulatory and tax requirements.
• Firms in a growth phase allocate more resources to ensure non-cash reward programs are in compliance.
To view or download a copy of 2019 U.S. Federal Regulations and Non-Cash Awards and supporting materials, please visit http://theirf.org/research/irf-signature-study-2019-us-federal-regulations-and-non-cash-awards/2677/.
About the IRF:
The Incentive Research Foundation (TheIRF.org) funds and promotes research to advance the science and enhance the awareness and appropriate application of motivation and incentives in business and industry globally. The goal is to increase the understanding, effective use, and resultant benefits of incentives to businesses that currently use incentives and others interested in improved performance.
Andy Schwarz, The Incentive Research Foundation, http://www.TheIRF.org, +1 703.651.8189, [email protected]
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