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Cash Incentives vs. Merchandise – The Pros and Cons
Money makes the world go ‘round, or so they say, but a free weekend getaway or a beautiful piece of jewelry can be equally as rewarding. Every company that implements incentive programs has their
own personal success stories of what works for their particular corporate culture, there is no one universal method or incentive strategy that works for all.
Popular opinion plus cumulative statistics reveal the following general statements about the various types of employee incentives:
| Cash Incentives Pros |
-Easy to disseminate, everyone knows what it is
-Allows employees to use the money for their own purposes
-Often an initial or impulse choice, don’t have to deal with merchandise/travel choices or sourcing |
| Cash Incentive Cons |
-Not as motivating, small amounts viewed as chump change and not worth pursuing
-No trophy value, can’t brag about receiving it
-Often confused with salary or bonuses, hard to stop once started, people feel entitled to it in the future
-Most end up spending the money on necessities rather than indulgences, will forget about ever earning the extra money
-No lasting value, money is spent and gone, merchandise/travel is remembered |
| Merchandise Pros |
-Variety, can create themes to make the programs fun and different
-Trophy Value, people will brag about their new set of clubs or LCD TV they earned
-Tangible and has broad appeal
-Can create greater competitive spirit, people will work harder for items they normally wouldn’t purchase themselves
-Visual motivator, easier to promote than cash (catalogs, posters, presentation of prize, etc.)
-Long shelf life, a cruise or flat screen TV has more enduring value than a check
-Luxury promotes success, associate the program with high quality brand names, go “above and beyond” for your people
-Memorable, people remember merchandise and travel, cash is soon forgotten and so will those who gave it as an incentive |
| Merchandise Cons |
-Breakable (really)
-More of a liability to choose and source
-Not as easily measured as cash
-Poor quality can hurt company image
-Non-interest in merchandise offered can be a demotivator |
Clearly, deciding on appropriate employee incentives can easily become a circular argument. That’s why it’s important in the planning stages of any incentive program to carefully assess the budget
parameters and supplier(s) to get a general sense of what would work best for your company. In the last decade, the incentive scales seem to be tipped more toward merchandise and travel incentives,
however, proper planning, good implementation, and consistency will ensure that your employee incentives will be well received for your particular business, regardless of what they are.
Incentives Marketplace is a performance improvement company devoted to providing clients with a single source for high quality, affordable incentives designed to achieve business goals.
Contact us today with your specific needs and put our incentive programs and experienced staff to work for you! Call 800-934-5474 or send e-mail to:
Info@IncentivesMarketplace.com.
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