However, research and experience clearly indicate
that non-cash incentives, in the form of merchandise
and/or travel awards, are much more successful than
money as an incentive award.
When monetary awards are given, employees
simply use them to pay for the same things that they
would otherwise have paid cash for.
Cash awards lack separability. Cash
awards simply go into a base salary "mental" account.
As a result, the value of the cash bonus as an award
for performance, or for years of service, does not
stand out anymore.
Why are non-cash awards better? Here are some very
important reasons:
Non-Cash Awards - Satisfy "Wants"
versus "Needs" - Cash can be spent on everyday "needs"
(such as groceries, bills, gasoline, etc.). But non-cash
awards are used for "wants" (such as new lawn lower,
a new watch or TV, an hotel package, etc.). Satisfying
a participant's "wants" is the role of incentives,
satisfying "needs" is the responsibility of compensation
(cash).
Non-Cash Awards - Eliminate Guilt
- When a bill is due, try justifying the purchase
of a new set of graphite golf clubs to your spouse
or family members. But if your incentive award can
not be used to pay bills, you're forced to spend it
on your dreams and desires. Since there is no choice,
there is no guilt!
Non-Cash Awards - Are Demonstrable!
We don't find much satisfaction in bragging about
paying for neccessities. But we do take pleasure in
showing off our new TV, or talking about our recent
trip. Non-cash awards are tangible symbols of our
success, and they provide an acceptable and important
means for us to satisfy our emotional needs for peer
recognition.
Non-Cash Awards - Have Memory Value
- Think about a special gift you have received in
the past, one that you use around the house. Do you
remember when you got it? Do you remember who gave
it to you, and how you felt when you received it?
You probably do. But who remembers where the last
paycheck went? Merchandise and travel awards provide
a continuous, long-lasting reminder of ones success
(or milestone)...and the efforts that went in to achieving
it... along with a fond remembrance of the company
who gave it to them. Vacation travel provides memories,
pictures, etc. If they earned a TV, they will remember
how they got it every time it's watched.
If you want your recognition program
to have a lasting effect, merchandise awards are always
better than cash.
For Employee
of the Month awards, Service
Awards, Employee recognition
program, or Corporate Gift program,
give them a choice with Gift Albums.
Recipients choose from up to 60 popular name-brand
products shown in each catalog. Albums are offered
at unbeatable prices to fit every budget.
