Make Your Incentive
Dollars Do More!
of tangible rewards over cash
For example, a study
conducted for the Goodyear Tire & Rubber Company compared the performance
of two groups of participants: one rewarded with cash, and the other rewarded
with merchandise and travel. Both groups recorded a performance improvement in
response to the incentive offered; however, the group receiving tangible
rewards had results nearly 50% higher
A major drawback of cash is
that it lacks “trophy value.” When 1,010 people were asked in a survey how they
spent their last cash reward, cash incentive or cash bonus, close to half
responded “bills” or “do not remember.” These answers (detailed below)
underscore the limited impact of money as a motivator.
_________________________________________________________________________________
Limitations of
Cash Incentives
In a
poll conducted by American Express Incentive Services, 17% of American
employees surveyed said they had received a year-end cash bonus from their
company; yet a full 32% of those who had been rewarded monetarily admitted the
bonus did not impact their work performance.
In a separate study of incentive planners, 68% of respondents said cash bonuses can have a negative impact if they are considered to be too small; three of five respondents said that merchandise and travel are better rewards because they are more like a gift; and three of five respondents said that cash rewards tend to be perceived as part of an employee’s compensation pack.
Source: The Society of Incentive & Travel Executives
_____________________________________________________________
How Much can an
Incentive Program
Improve Performance?
Research indicates that a well-designed incentive program offering non-cash rewards will increase performance an average 22%. Team incentives increase performance by as much as 44%.*
*Source: Incentives, Motivation and Workplace Performance
Research and Best Practices (International Society of Performance Improvement)
Comments