Just about
every year the incentive industry comes out with some kind of survey, report or
article on why you should use non-cash awards in your recognition and incentive
programs. Their most recent research
leaves little room to dispute the fact that a well-conceived, well-run
incentive, recognition, or reward program improves productivity and
performance.
For a variety of reasons, non-cash has slowly become the dominant reward for non-sales employee recognition and incentive programs. According to the Incentive Research Foundation, one study found that after six months of well-designed program companies will see average performance gains of 44 to 48 percent in productivity. Within this research, there was evidence that non-cash rewards work better than cash.
There has always been debate surrounding the best use of different types of rewards (intrinsic, extrinsic, cash or non-cash) but there is little debate as to whether rewards work to increase productivity. While studies today focus on the emerging approach and the principles of award program design the discussion that emphasizes the use of cash and tangible non-cash rewards as symbols of recognition remains important, possibly even more so.
For a variety of reasons, non-cash has slowly become the dominant reward for non-sales employee recognition and incentive programs. According to the Incentive Research Foundation, one study found that after six months of well-designed program companies will see average performance gains of 44 to 48 percent in productivity. Within this research, there was evidence that non-cash rewards work better than cash.
There has always been debate surrounding the best use of different types of rewards (intrinsic, extrinsic, cash or non-cash) but there is little debate as to whether rewards work to increase productivity. While studies today focus on the emerging approach and the principles of award program design the discussion that emphasizes the use of cash and tangible non-cash rewards as symbols of recognition remains important, possibly even more so.
The recent
study that discusses the cash/non-cash question quite extensively is titled
“Award Program Value and Evidence.” It
is by far the best discussion we have ever seen on the subject. While it covers territory that we have been
discussing for years, it goes a lot deeper into those with sound psychological
reasoning non-cash works so well.
Executive management expects their investments in incentive, reward, and recognition programs to produce some return on investment. This study presents a strong case for using non-cash reward programs to motivate employees and practical advice on how to measure the success of these programs to ensure goals are met.
You can download a copy of this study here.
Executive management expects their investments in incentive, reward, and recognition programs to produce some return on investment. This study presents a strong case for using non-cash reward programs to motivate employees and practical advice on how to measure the success of these programs to ensure goals are met.
You can download a copy of this study here.
For
more information on Ultimate Choice Inc.’s products or services or other white
papers please contact us at Ultimatechoiceinfo@cox.net
