In order for business incentives to be effective they need to meet certain criteria and avoid certain pitfalls. Here are the dos and don’ts of planning successful business incentives:

• Do offer the incentives as a competition or drawing in order to get as much benefit from as many people as possible with as little money as possible.
• Don’t consider giving substantial incentives away without a reason.
• Do consider giving smaller incentives away periodically as well as in lieu of winning larger incentives. Coffee mugs with corporate logos are a great incentive for just about everyone!
• Don’t consider giving minor gifts as rewards for great actions. If Bob from the help desk saved the company $8,000 a month by helping set up a new VoIP calling system then giving him a mug as a reward is insulting.
• Do consider offering incentives to employees that find new ways to save money. Some companies do with the best incentive of all: a percentage of the savings for a set period of time.
• Don’t consider altering deals later just because of the bottom line. Trust is an important factor in any business relationship and it is nearly impossible to rebuild once seriously abused.
• Do consider different types of rewards for different types of employees, partners, suppliers, and so on. Incentives that work for employees probably won’t work well for suppliers.

There are plenty of different meeting incentives, and many different legitimate business reasons to give those business meeting incentives to nearly anyone from employees to suppliers and even political associates. The ultimate business meeting incentive might not be a pay raise, a bag full of money, or even that nice covered parking spot next to the CFO’s parking spot. Instead, it might be a corporate sponsored cruise. Here’s why:

• Cruises are highly sought after travel arrangements and destinations wrapped up in one. This makes cruises an incredible gift for nearly anyone associated with a business.
• A well planned incentive plan will motivate multiple people and/or parties to perform better, display greater honesty, or more. It all just depends on who the target recipients are, but a single ticket could inspire countless groups or individuals to take a positive action.
• Cruises are very cost effective, and it might be worth evaluating the idea of a cruise meeting in the future. Cruises almost certainly beat hotels and entertainment expenses, especially since most cruises are all-inclusive.
• In many cases a portion or all of a cruise incentive package can be tax deductible. As with any tax related issue be certain to consult with a tax professional for advice and the latest rules governing taxes and deductions.

Because cruises exude luxury, many businesses mistakenly believe that incentive cruises are beyond their budgets. Many may not even consider a cruise event or ship charter as a business incentive due to the “cost” of the cruise. However, incentive cruises are really no different than other forms of business incentives. For example, the cost to secure accommodations for a group at a hotel can range significantly. Some hotels and resorts are much more expensive than others. This same concept applies to cruise events. When businesses opt for meetings at sea, the business can find a price point that will be right for them.

The type of cruise a businesses chooses should be based on the needs of the company as well as the participants. Businesses rewarding a few employees with a business incentive such as a ship charter may desire a more luxurious cruise, while businesses treated hundreds of employees to a cruise event may opt for a more basic cruise package. Not only can a cruise easily fit in the budget of almost any business, but an incentive cruise can be very motivating for employees. Even when businesses have a price point to meet, they should still consider an incentive cruise as a viable option.