This entry was posted on Tuesday, March 27th, 2012 at 4:51 AM and is filed under cash or non cash awards, employee incentive programs. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
Are you still on the fence on whether to use cash or non-cash incentives to motivate employees to perform better? According to this article from Business Line…
“most Human Resource professionals would opt for offering non-cash incentives”
While we don’t know where the author received his data to support this conclusion, at Award of Choice we tend to strongly support this position, with a caveat that it is important to make sure that the total cash compensation package is sufficient to get satisfy performance. If not, you will need to fix that as non-cash incentives cannot solve that problem.
The author goes on to provide a couple of arguments in support of his position. One, a fairly common one in the industry, that non-cash creates trophy value and a lasting memory for the recipient. He maintains correctly that cash likely ends up being used to pay everyday expenses and the bills, where non-cash will not.
The second argument he makes from a slightly different perspective. He states that in these down economic times, income is often less than what most need to maintain a similar standard of living as in the past. People are living within their means trying to satisfy their necessities and don’t indulge in the luxuries without feeling guilty. Non cash incentives in these cases are very powerful motivators as they provide for guilt free shopping giving the winner permission to indulge. As he states,
“offering only non-cash incentive would cause a positive reaction; for the employee, having tasted luxury, is likely to further improve their efficiency. Besides, sharing their experience with fellow workers could tickle their urge to experience the luxury for themselves, driving them to work harder too! “
The Award of Choice card is an ideal non-cash award because it offers a true value to those receiving it. And with the almost unlimited number of choices, each individual is sure to get the award that they want, the one that will fit their lifestyle.