There is perhaps no subject debated
more frequently by employee incentive program managers
and their participants, than the question of using Cash or non-cash tangible
merchandise as incentive awards.
While employees may say they prefer cash to merchandise rewards, research has repeatedly shown that cash is a very poor motivator due to its lack of "trophy" and "memory" value. Generally, employees don't really understand what actually
motivates them to do something different.
When monetary awards are given, employees
perceive it to be part of their total compensation package, and simply use it to pay for the same things that they
would otherwise have paid cash for. They quickly forget that the award was part of the incentive program.
As a result, the value of the cash bonus as an award
for performance, or for years
of service, does not
stand out anymore.
Research and experience clearly indicate that non-cash
incentives, in the form of merchandise, are much
more successful than money as an incentive award.
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 every time it's watched.
If you want your recognition program
to have a lasting effect,
merchandise awards are always
better than cash.
Give employees a choice with Customizable Gift
Album Presentation Packets.
They can select their own award from many name-brand
products shown in each catalog (with even more available
when redeemed online). Albums are offered at unbeatable
prices to fit every award budget.
If you are looking to implement a Points
Based incentive program - we have two great
options, using either printed catalogs or an online
awards program.
