The argument of whether to use cash or non-cash as awards to motivate or recognize employee performance is as old as the award industry. There have been many corporate managers who think that cash is the only way to reward behavior, and in fact as money is the contract that we have to get people to come to work, these same managers often think that we shouldn’t have to pay them anything additional to perform their jobs. Frankly, in many respects this is a valid opinion…. the old “a day’s work for a day’s pay” attitude.
Based on
decades of experience in analyzing recognition awards programs, we have firsthand
knowledge that the salary you pay employees is considered by most as merely the
contract that you make with them to get them to work. It has relatively little to do with how well
they perform their responsibilities when they get there.
Many people in the incentive industry will say that cash as an award doesn’t motivate as well as non-cash. Frankly to say that cash doesn’t motivate is disingenuous. It is innately tied to our perceptions of cash as a universal motivator in this country. It is easy to use, easy to distribute, and fulfills many of the needs that people have. In difficult economic times it can certainly be very motivating.
However, there are two sides to using cash as a motivator, and to understand when to use cash and when to use alternative awards requires an understanding of both sides.
Over the years we have spent a great deal of time researching cash and non cash as an employee award and have come up with at least eight reasons why non cash may be a better choice when attempting to motivate and award employees. Pease see the attached white paper for a more detailed explanation of the reasons.