|
|
|
 |
| |
Cash Rewards often become confused with compensation, i.e. Salaries
and bonuses. When the cash incentive is perceived as compensation
it is very often difficult to discontinue this award. Cash is
private between the employee and employer and difficult to promote
as an award as participants usually spend this on everyday expenses
or paying bills. This contributes to cash as having no perceived
trophy value.
Tangible Awards are symbols of achievement. Studies have shown
that tangible award programs encourage spousal participation
giving the participant a greater vested interest. While cash
awards are usually kept secret in the work environment, tangible
awards are often displayed and discussed, allowing the participant
a level of recognition. Studies show that tangible awards offered
in incentive programs: |
|
| • |
|
Result
in higher performance than cash awards |
|
| • |
|
Are
more effective than cash for rewarding specific, measurable
actions |
|
| • |
|
Appeal
to people's higher-level needs (social and self-esteem) |
|
 |
 |
|
