The incentive travel market, a proven company reward structure for staff, has been substantially damaged by existing taxation rules.
Many companies, with long standing incentive travel programmes for customers and staff, have recently changed over to a cash performance reward system, only to revert again to travel rewards.
They have found that over time extra cash payments lose their incentive value, since they seem to disappear in extra tax, bills and food.
Travel incentives seems to be on the way back, because they genuinely motivate and also provide a lasting benefit.
Travel incentives also avoid many of the costs and taxes associated with cash rewards, including fringe benefits tax, payroll tax and leave loading payments.
Many companies are moving towards travel incentives after evaluating these factors and are concluding that the benefits far outweigh the cost of any other incentive plan.
