Mike May, CMP, CITP, IP, is President and owner of Brightspot Incentives & Events in Dallas, TX.
Non-cash awards have several advantages over cold, hard currency in the modern incentive program. Here are 6 reasons to consider using merchandise or gift cards as your next motivational reward:
When properly presented, non-cash awards ignite the imagination in a way that enhances their perceived value. The participant’s reaction to the award substitutes for its actual value. Think back on all the times you have received cash as a gift. Now try to remember the occasion, or even who gave it to you. Chances are there were a handful of gifts that held higher value to you than their quickly forgotten cash equivalent.
Cash creates entitlement. Cash invariably turns the extra reward into something to be expected later on; you can give it, but you can never take it away. Non-cash awards deliver more recognition because they don’t get mixed with compensation. They can be turned on and off without anyone’s expectations not being met.
Participants receive special satisfaction from non-cash awards because there’s no guilt associated with spending them. Essentially, recognizing the difference between redeeming 25,000 ‘points’ to use on a 75″ 4k TV versus having $2,500 in cash that could go to a college fund or paying off bills. Which award do you think gets remembered during the next sales kickoff?
4. Social Reinforcement
People feel free to talk about non-cash rewards in a way that would be inappropriate for cash compensation. It’s socially unacceptable to brag about your bonus or commissions, but others are intrigued about how you won an incentive trip to Maui. Non-cash prizes provide a tangible symbol of achievement that can be recognized by all.
Surveys show that merchandise and travel rewards are remembered longer than cash, with a longer-lasting boost in performance. They provide a lasting reminder of success and reinforce a positive association with the sponsoring company. For example, try to remember an employee reward trip, or merchandise you won. Now, do you remember that amount of your bonus that year?
Cash is difficult to promote – unless you keep increasing the amount. A trip to Monaco, a new HD TV, the latest iPad, or big diamonds create visual interest that engages participants’ brains – they see the reward, they want the reward, and they consider how they can improve their performance to earn it. It doesn’t hurt that this creates a buzz factor between employees when they talk about what prizes they’re going after.
There is more to it than just not using cash. Choosing the right types of awards for your audience and knowing how long to keep a program running are necessary to properly motivating your team.
About the Author
Mike May, CMP, CITP, IP, is President and owner of Brightspot Incentives & Events in Dallas, TX. Incentive Magazine recognized Mike as one of the Top 25 Most Influential People in the Incentive Industry, and BizBash named him on its list of Top 500 in Events. Mike is a strong industry supporter serving as the 2018-2019 Chairman of the Trustees of the Incentive Research Foundation (IRF), a past member of the Performance Improvement Council of the Incentive Marketing Association, and a frequent industry presenter. Brightspot has won multiple Motivation Masters Awards from Incentive Magazine, and Meetings & Conventions recognized it on their list of the “Best Places to Work in the Meetings Industry.” He is also the author of 12.5 Steps to a Perfect Incentive Program, a comprehensive how-to guide filled with incentive tips, actionable advice, and industry research.