To Pay or Not to Pay Survey Respondents - How to Decide

The Big Question

When designing research, there are a number of decisions to be made. In addition to methodology choices and sampling concerns, the issue of compensating respondents is an important decision. Compensating respondents to answer your survey can be a very important aspect of the recruiting process, and, in many cases, is expected, especially among consumer respondents. Compensation is not without its limitations, however, and still requires a thorough discussion and decision-making process. Outside of the obvious financial reasons, there are several points to consider when deciding whether to compensate respondents.

Do you know your respondents and do they know you?

To start, if your research endeavor involves your own customers, and there are no methodological reasons to field a blind survey, it may not always be necessary to compensate respondents. For example, satisfaction studies among customers with whom you are very familiar or have a relatively intimate relationship will likely not require compensation. A customer, especially in a B2B relationship, that is highly dependent on your company or benefits directly from your product or service should not be compensated for answering a relatively brief survey to gauge your performance - it benefits them in the long run.

Are there legal reasons to not compensate respondents?

In some cases, there are legal reasons for not compensating your respondents. Should the audience of your research include health care professionals, this is a very relevant question. With the implementation of compensation transparency requirements such as the Open Payments Act (formerly the Sunshine Act), compensating physicians, nurses, or other allied healthcare workers for their research efforts has become much more complicated. Having to report compensation may turn some potential respondents away, making recruiting that much more difficult, not to mention an administrative headache.

Some companies have reacted to this legislation by requiring every health care professional who responds to research they sponsor to be subject to Open Payments reporting. This is not a requirement for companies who use 3rd party research companies to insure they have no influence over who was invited. This was specifically called out by CMS, the organization charged with enforcing the Open Payments Act.

Some US states have more specific restrictions concerning compensation that make it very difficult to solicit respondents that live or work there. Some of our clients have even decided to avoid respondents in those states altogether just to avoid having to jump hurdles.

What methodological reasons would preclude you from compensating?

An extremely important component of valid, valuable market research is the existence and appearance of impartiality when it comes to recruiting of respondents. If you are soliciting respondents on your own, or the survey is clearly branded under your company’s name, this may appear to be a conflict of interest. Regardless of intent, it is imperative to remove this as an option.

What other options are available to me?

If you really want to incentivize your audience, but are unsure of whether a cash incentive is wise, consider alternative compensation methods. Examples include a donation to a relevant or popular charity in the name of the respondents. Non-monetary compensation can also be considered, as long as the good or service does not fall under any reporting guidelines as mentioned previously.

What Actionable Research Can Do to Help

In addition to providing our clients with research plans, methodology choices, and analytical insights, we at Actionable Research walk through the respondent compensation discussion with our clients to make sure we are together making the right decision for their particular case. We weigh the benefit of compensating respondents against any potential negative research impact, all the while steering clear of any legal issues. We operate as a disinterested third party with our client’s best interest at heart.

If you need help deciding how to approach your research question, how to choose respondents, and whether to compensate them, Actionable Research is ready to help.