Why Using Cash Incentives Doesn't Work

Organizations continue to spend millions of dollars trying to motivate their employees with cash?  Why, if everyone who has studied the incentive business in any depth knows these programs don’t work.

Instead you might want to try identity exactly what motivates your employees through solid research.  Determining solutions to do those things you uncover is not the easiest approach to implementing an incentive program, but it has proven to be the most effective.

We all love cash, so what are the reasons why using cash incentives just don’t work?   Here are a few:

• People are already motivated. And additional cash incentives at best are effective only 20-25% of the time.
• You can’t motivate the middle 80% of your workforce with a single strategy.  But you can provide an environment where they can tap into what already motivates them. An inducement won’t motivate performance if it’s not what the individual wants.
• Cash won’t buy engagement. You can’t read a human resources magazine without seeing something about employee engagement.  It’s estimated that only 13% of employees worldwide are engaged at work.
• Most cash incentives are macro in nature, with little involvement by the immediate supervisor.  Yet the most critical relationship exists between the employee and their immediate supervisor.
• Cash won’t necessary create better leaders, but leadership development definitely can.  If you have the cash to spend, get something for it and invest in leadership development.

Cash incentives are the easy way out.  Sometimes it’s just easier to give $25 than creating a truly motivational timing.

The argument about of cash incentives has been around for decades.  To see more information on the differences between using cash or non-cash as a motivational award, please click here.

For more information on Ultimate Choice Inc.’s products or services or other white papers please contact us at Ultimatechoiceinfo@cox.net

Kick Up Your Employee Recognition a Notch

Employee recognition is now a cornerstone of successful companies. Tons of books have been written about it, major events are created for it, and executives have embraced it like never before. In the last thirty years or so, formal employee recognition using non-cash rewards has taken on a completely new understanding within human resources.  The days of the simple gold watch have been replaced by some very elaborate systems.

But employee recognition is not a new found business tool; it’s been around for a while.  Here’s an interesting quote about it:

“In the arena of human life the honors and rewards fall 

to those who show their good qualities in action”

…  circa 350 BC…Aristotle

But like so many other things in business, recognition can get a little tired and worn and lose some of its punch.  Unfortunately it can also be limited in some organizations where employees can complain about the lack of recognition on a regular basis and managers say “why should I recognize or thank someone, they’re just doing their job.”

Those of us who prioritize employee recognition understand the power of recognition.  We know it’s not just a nice to have, it is a must have.  It reinforces the most important outcomes you want for your business.

If your recognition is becoming worn and tired, consider kicking it up a notch and try some of the following today:

• Plan to thank at least one person a day
• Take a small working group for a cup of coffee or lunch
• Handwrite a simple thank you note and give it to a worthy employee
• Ask and executive to stop by a person’s or department work space and thank them
• Accompany the verbal recognition with a small gift or gift card
• Present the recognition publicly if appropriate (be careful as some employees can feel uncomfortable with this type of recognition)
• Make your recognition random so that it provides an element of surprise

And remember what Dale Carnegie said:

"People work for money but go the extra mile for recognition, praise and rewards."

For more information on Ultimate Choice Inc.’s products or services or other white papers please contact us at Ultimatechoiceinfo@cox.net

Show Employees How to Connect the Dots

When we hire a new employee we tell them what the job entails, how we want the job done, their responsibilities, etc.  Many companies go through a complete list of what to do on the first day (or week) of employment that can include everything from going over benefits and the employee manual to meeting with the executives.

One thing we believe is often missed during this important introductory period is making sure that the employee has a good foundation on why their job is important and how to connect the dots from their position to other jobs in the company.

Every one of the 3200 sailors onboard the aircraft carrier USS George H.W. Bush knows the importance of their function and how it can affect the performance of the world’s largest aircraft carrier.  They know why their job matters and how it contributes to the total function of the ship.  This importance is drilled into them from the first day on board.  Their motivation and pride in being part of the best drives their effectiveness.

During their introduction, let your employees understand what parts of the company they can readily see and the ones they can’t and then connect the dots for them. When they see how their work fits into the bigger picture, like the sailors, they will be more motivated and effective.  In addition, once they truly understand how their job contributes they are more likely to take initiative, solve more problems and add more value.

Let them know what’s behind the next wall, or in the next building, or in another building

across town, or across the country.  Take time to let them know how the company values and how important they are to society.  This can have a big impact on profit, makes a difference not only to morale but to creative thinking and innovation.

For more information on Ultimate Choice Inc.’s products or services or other white papers please contact us at Ultimatechoiceinfo@cox.net

If Your Employees Matter, Let Them Know

I while back I read a post in TLNT by Patty Azzarello that I believe is worth repeating.  My guess is that this type of scenario repeats itself daily throughout the business world.  The story goes like this: 

One time the CEO of the bank asked a young trainee, “So, how do you like your job?” The man replied somewhat discouraged, “I have a really stupid job. All I do is replace the pens and the make sure these containers that hold the deposit slips are never empty”.

The CEO then said, “Not only is your job not stupid, you have the most important job in the whole bank! Our bank can’t exist if customers don’t deposit money, and customers won’t deposit money if they don’t have confidence in our bank. It’s your job to make sure that our customers’ very first experience when they walk through our door is a good one.”

“What could be more important than that?” “How do you think our customers would feel if the pens didn’t write or they needed to go through the time and hassle to ask someone to get them a deposit slip? Would they feel welcome and confident in us?”

The obvious lesson here is to let your employees know they are important to you. Everyone

is hired to perform a function, and when those duties are performed well recognizing them for that performance starts the pattern for how those employees grow in their job and in their importance to the company.

The best time to begin the process of employee reward and recognition is right from the beginning.  Studies have shown that the first few months of employment are critical to their retention.  So let them know that their job matters and why it matters. 

For more information on Ultimate Choice Inc.’s products or services or other white papers please contact us at Ultimatechoiceinfo@cox.net