Another study out this week, by the Incentive Research Foundation shows again, what the GCP team has known for years, cash incentives are not always the most effective. According to this new research non-cash incentives such as merchandise, travel, and gift cards prove more effective than cash rewards. Employees find them to be more valuable. They drive more competition in today's tough economy, and are viewed as a special treat, rather than cash that could be spent on bills, or groceries. Non-cash incentives must be used for a special occasion, whether it is a trip, or "free" merchandise purchased through a gift card. The trophy value of gift cards and other non-cash incentives is also important in today's economy. No one wants to lose their job, or feel as though their job is in danger, these kinds of incentives serve as better reinforcement of behavior than cash. Employees take more notice of other employees receiving non-cash incentives, rather than a check that is often included in an employees regular paycheck. So when beginning to think about end of quarter, or end of year bonuses and rewards, think outside the "cash box."
For more information on the Incentive Research Foundation study click here.