Recent surveys indicate tangible rewards are an important component of incentive schemes. An
Incentive Federation Inc. (2007) survey study indicates total annual tangible reward spending in
the U.S. of $46 billion. The same study reports that 34 percent of the 1,121 U.S. companies
surveyed use merchandise or travel rewards, with larger companies (revenue greater than $100
million) more likely to use them (57 percent). Similarly, Peltier et al. (2005) report that 57 percent
(65 percent) of their 235 survey respondents use merchandise (gift card) awards. Finally, the
merchandise reward amounts are often substantive portions of total compensation. Jeffrey et
al. (2011) report that among firms budgeting at least $250,000 for merchandise rewards, the reward
amounts range from 4.4 percent to 8.8 percent of employee annual salary.