Motivation, recognition, incentives – all these are important in keeping your employees happy and satisfied with their jobs. It’s even more important in today’s times when millennials are always looking for new career opportunities and a large part of that has to with their non-recognition. People today are more likely to switch jobs just because they feel de-motivated and unvalued at their current organisation.
Employees can be motivated in several ways, such as excellence awards or a paid day off, but the ultimate motivation still comes from money. It is a great tool to motivate the employees to not only do better and beyond, but also maintain an increased level of productivity. The trick is to use money as an incentive in a broad spectrum and not just straightforward cash.
There are a few employee recognition practices that can be really effective for organisations. Even when it comes to rewards specifically, there is a variety of options to choose from. For example, special bonuses, commission pay, gift certificates, and other rewards. However, there is an ongoing debate regarding which is the most effective option – cash or rewards gallery.
To straighten things up, let’s look at some of the reasons why non-cash rewards have more benefits compared to cash.
1. Stronger Organisational Impact
A study by Forum for People Performance Management and Measurement shows that managers prefer non-cash rewards over cash because they have stronger organisational impact. To maintain a healthy, competitive culture and increased collective productivity, non-cash rewards work really well. But, when it comes to general employees, there is a polarisation in preferences, which is understandable because cash pays bills. However, non-cash rewards are generally considered more important and effective in achieving organisational objectives.
2. Lasting Effects
Generally, cash rewards do not have lasting impacts because the people who receive a cash reward tend to add it to their other compensations and simply use it for everyday purchases. In contrast to that, non-cash rewards can be in a form of something that will be memorable for them.
3. Strong Positive Association
In continuation of the previous point – people, who receive non-cash rewards, such as a unique souvenir or keepsake, still enjoy strong association with it and the organisation long after years have passed. The rewards may even be in form of travel, which can be really memorable for a person and a good getaway without having to plan a budget. Global rewards with Gcodes are great in this regard because they include everything from hotels and travel to merchandise.
4. Bragging Rights
Non-cash rewards give employees the bragging rights. They share their excitement openly with everyone. Most organisations prohibit employees to share their cash compensations and rewards with others, whereas, there is no such restriction with non-cash rewards.
5. Employee Satisfaction
From an organisational point of view, there is an issue with cash rewards. Employees see cash rewards as compensations and when that cash compensation is removed, they feel slighted. This can be avoided with non-cash rewards because they are in clear recognition of certain behaviours and results, so employees will be content with or without it.
It is safe to conclude that non-cash rewards are more effective than cash in stirring motivation among employees at an organisational level and ensuring increased productivity, while also adding value to their personal and social life.