A survey of 222 transit directors on the use of financial incentive programs (FIPs) showed that merit pay was the most widely used FIP, followed closely by noncash incentives. Concerning performance measures, 97% of the merit pay programs utilized a supervisory performance evaluation, with attendance being the 2nd most important job behavior cited. Increased employee motivation was the most frequently cited benefit of merit pay programs, with reduced absenteeism and tardiness also seen as major improvements. 88% of the merit pay programs were judged to be effective