Cash or Carry? Does money work as an incentive?
- Some surveys suggest money is low on the scale of what people want as rewards.
- Managers surveyed in these studies typically rate cash especially low as a performance motivator.
- 2003 survey conducted by the Incentive Federation reported that 60% of respondents agreed that travel or merchandise is preferable to money as an incentive.
- 61% of incentive program managers felt they could build a more effective incentive program with merchandise as opposed to cash
- American Express Incentive Services reported that only 25% of the respondents who had ever received an incentive award listed cash as the best job performance reward they ever received
HR Perspectives on Non-cash Rewards and Recognition
- those with the highest financial and operational results) were more than twice as likely as all other firms to provide non cash incentives
- HR has been slow to become the true corporate-wide strategic partner for non-cash rewards. HR respondents reported that they only represent 50 to 80% of the overall non-cash R&R spend
- Of 603 respondents, approximately 67% had formal non-cash reward and recognition programs or incentive travel programs
- 401 respondents with programs, 251 had either direct or indirect planning duties in either the non-cash reward and recognition programs or incentive travel programs
- non-cash reward and recognition programs receive a surprisingly large amount of sponsorship at the corporate level with 73% of respondents noting that their noncash reward and recognition programs have corporate sponsorship
The Economics of Employee Engagement
- The cost of employee disengagement is profound.
- 350 billion dollars per year in lost productivity, accidents, theft and turnover
- the difference between an engaged and disengaged workforce can ultimately mean success or failure
- At the individual level, engagement at work influences all aspects of an employee’s life and those that are close to him or her
It’s In the Cards: An In-Depth Look at PrePaid Cards in Incentive, Rewards & Recognition Programs
- Prepaid cards are now the most frequently used reward in corporate incentive programs
- non-cash rewards for employees, partners and customers has become a $46 billion plus industry in the United States
- This represents more than double the $22.8 billion spend ten years earlier
- 75 percent of organizations use prepaid cards
- 83 percent of respondents said that gift cards make gift-giving easy, and more than half said they save shopping time
- 37 percent of our survey takers that do not use prepaid cards in their rewards programs
- 10 percent do not because they have tried them and are disappointed with the results
- it appears that very few organizations that have tried prepaid cards stop using them because they are ineffective as rewards