Yet, whenever people are asked what award they would like to see in an incentive program, the answer is invariably cash. Many of the answers compare cash and non-cash awards. Both have their place in effective compensation and reward plans. Hinda can help you determine where non-cash awards can improve the performance of your employees, distributors or dealers. Both cash and non-cash awards have a place in the employee's compensation mix.
Cash is, on the surface, preferred by everyone.
The reality is, however, that cash can be an ineffective motivator. Although it can satisfy certain monetary demands, it does not energize people to reach beyond their basic job requirements. The basic monetary needs of security and physical comfort must be adequately met with an employee's income before non-cash incentives are effective motivators. Nationwide, employee surveys consistently say that what people really want is to be recognized for making a contribution to the job. Because of their nature, non-cash awards have intrinsic recognition value.