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What have you found is a better staff motivator, cash or non-cash rewards?
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- Michael Dortch
This is one of those questions that will inevitably endure through many more years and many more companies.
The truth, as many of the other posts state, is that it really depends on each individuals desires and motivators. Many times the reason that anyone is questioning a reward system is because performance is poor and there is a desire to increase it and some type of incentive is used to increase the poor performance. In other cases, it becomes just another component of the job. almost an expectation and therefore it loses the intended affect, that is until it gets taken away and the sense of entitlement takes over. These are tough things to think about, but they are the truth.
One of the first questions before determining what to use as a reward is to determine WHY is there a reward being offered. That simple initial evaluation can give you a much better guidance. If it is due to an actual or perceived lack of performance then it doesn't really matter what the reward is, it will be a short-term gain. Let's say for example that you have a perceived performance problem and you give a reward to try and increase the performance. If the performance increases, then you know that there is something else that is truly driving the non-performance and as soon as you take away the reward it will more than likely go back to the previous state. If there is a lack of performance due to outside circumstances then a reward won't really help to make a difference. Again, something else needs to change.
So let's look at the other side of this coin. Things are going well, and you want a reward system to empower and encourage top-performers. one thing to keep in mind is that a one-time reward can be great, but the effect of being appreciated on a regular basis is much more rewarding. This means giving development and growth opportunities, allowing employees to be a part of the organization in more ways than just a simple job description, and let them have a voice. Why not let the people that will be rewarded come up with the idea of how they want to be rewarded, and how often? And check back on this at least once a year, because the company environment can and probably will change from year to year.
I'm pretty sure that I went beyond what you were really asking, so please forgive me, but too often I believe that this question gets passed off without the proper attention that it deserves.
It's been a long time since sitting in class, but the education always said that money is the fastest motivator, but also the shortest.
It seems that both would motivate the same, fast but short. However, if you give somethingt that is remembered, like a nice peer award, something they can put on the wall, with something that reminds them of a special memory I believe it has a long period of being remembers.
The first sales award I received as a very nice Movado Watch. It's still my favorite watch, after 17 years. It's a bit scratched these days, but it has such a sentimental value that I still enjoy putting it on.
I'd consider something besides cash, that has a tangible monetary value they can see, with a long term memory of what it was for, and give it to them in a big way - in front of their peers for the proper recognition.
From my perspective, money is the best incentive.
That being said, I believe an effective incentive program can include a various levels of monetary and non-monetary awards. Recognition for the successful end of a long-term project earns a different level of reward than a "just wanted you to know I appreciate you" award.
Everyone has their "currency" and the best leaders know their employees well enough to understand what the "currency" is for each employee. For example, great tickets to a local sporting event or a certificate for a round of golf may work for one employee where a day at the spa would be a nice show of appreciation to another.
The best non-monetary award I received was a week in a resort with my husband. The worst - anything with the company logo on it.
There are premium companies that will provide you a catalog of gifts to choose from as well. That can be fun. It's basically a catalgo that has prizes in a range to chose from based on the number of points you have been awarded or earned.
You go online, order what you want - simple, and fun.
It depends on the corporate culture. Sales people usually want cash.
But there are some environments where non-cash rewards can cause the employees to remain motivated longer. In some cases, a small reward can make the employee take greater ownership of the accomplishment, and therefore increases their esteem more so than a large reward. When you earn a large prize it's easy to see that you did the hard work for the reward, but when it's only a nominal award or simply recognition, the employee justifies it to himself by believing that he did the hard work for the intrinsic value of the accomplishment.
Cash awards seems to be preferred over non-monetary awards. Everyone has different tastes in gifts, Individual personalities can also be a challenge for non-monetary awards. But, cash can always be used to buy whatever they actually want.
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Related Activity
Determining what incentives to reward your employees with, can vary vastly between employees. Depending on the size of your company, I would suggest that you determine how you reward each employee on a one-on-one basis or implement new policies and procedures within your HR department to evaluate individual employee motivation. Everyone is different and what motivates one employee to perform might not work for another.
For instance, you might have one employee who is motivated by recognition and the ability of quick advancement, while another employee might prefer to earn extra vacation time. In order for your rewards program to be the most effective you should try to personalize it as much as possible.
One way to learn more about your employees is through behavioral personality assessment tools. Here are a few links:
http://www.communityoncology.net/journal/articles/0103166.pdf
http://www.joe.org/joe/1998june/rb3.php
http://www.piworldwide.com/employee-motivation.asp
http://www.ttidisc.com/products.php?product=values