The purpose of this study was to explain the effect of a lottery-based incentive program on employee absenteeism. Based on a review of the relevant literature, seven variables were examined: (1) past attendance behavior; (2) employee liking for the lottery program; (3) employee perceptions of

the contingency of rewards; (4) employee perceptions of acceptable levels of absenteeism; (5) employee perceptions of the clarity of management's attendance goals; (6) employee perceptions of the reasonableness of management's attendance goals; and (7) employee expectations of success in improving attendance.