Building a Case for Noncash Rewards
If you were to ask your employees or channel partners what their reward preference is, you will more than likely hear “cash” as a common answer. This is evident in a recent survey by the Incentive Research Foundation (IRF), where although cash was highly rated as a preferred reward, cash was not associated with high levels of engagement. It is proven that money is the least successful incentive reward a leader can offer in terms of results – even though it’s often given when employees ask for it.
The reward types associated with job satisfaction ratings at higher levels than cash include:
- Company-wide recognition as a Top Performer
- A luxury, curated merchandise gift
- An Incentive trip for yourself and a companion (individual travel)
- An extra paid week of time off
- A promotion with more responsibility
Additionally, “a large number of award points” was rated within the top five reward types (above cash) in correlation with higher levels of motivation. Still not convinced? Read about the five primary arguments for non-cash rewards over monetary incentives in our blog here.
Think about your last cash bonus. Do you remember what you did with the extra money in your bank account? Now, think about your favorite noncash reward. Did it include a high-tech item you earned and still use today? Was it a trip that allowed you to experience things you’d never do on your own? Rewards should be fun, unexpected, and create lasting impressions. Most importantly, noncash rewards foster loyalty and enhance emotional connections between the giver and the receiver. And cash just can’t do that.