WHEN IT COMES TO THE POWER EMPLOYEE ENGAGEMENT AND NON-CASH INCENTIVES, WE’VE LEARNT A HECK OF A LOT OVER THE PAST FEW DECADES AS TO WHAT REALLY DRIVES ENGAGEMENT.
Is the aim of your rewards and non-cash incentives programme to influence purchase decisions? Boost the performance of your workforce? Or simply encourage higher attendance? With options such as cinema tickets, the case for motivational rewards is alive and well.
But, are we simply talking the talk here, or is there enough evidence to justify us walking the walk?
Well, let’s take a closer look…
CASH REWARDS VS. NON-CASH INCENTIVES – WHICH IS BEST?
Whilst we still encounter some scepticism about reward and recognition schemes, it is clear that employee incentives in the workplace matter. But here’s the main issue that creates that scepticism – their effectiveness and conceivable returns certainly vary.
There are diverse perceptions of what qualifies as a practical, worthwhile incentive for all parties involved. It’s imperative for incentive and rewards program organisers to do their homework before running amok with giving away free stuff.
Now, there are going to be instances where cash rewards have a positive role to play in employee engagement. If you’re in a sales-based environment where pay is commission-based, cash bonuses will most likely rule the roost. But cash isn’t really the one-size-fits-all solution that some people expect it to be. And the same goes for a rewards or incentives programme, too.
Cash incentives may seem the obvious route to take when looking to inspire action from a targeted group of people. However, research tends to contradict this assumption, suggesting that encouraging monetary-based motivation isn’t always the best route to take.
It’s important to highlight that the fact that no two rewards programmes are alike. They’ll all have their own unique aims and budgets. Yet, the value of the non-cash reward remains consistent regardless of targeted audience.
Those who delve a little deeper will find that non-cash incentives – which include cinema and travel benefits – rule supreme when it comes to moulding and motivating the behaviours.
THE DEEPER VALUE OF NON-CASH INCENTIVES AND REWARDS
One of the leading authorities in incentives and rewards, the Incentive Marketing Association, note four key reasons why a non-cash incentives trump the traditional cash gift:
Thoughtful non-cash incentives have the ability to ignite the imagination in a way that enhances their perceived value. Experiences create lasting memories that build bridges, relationships and morale in ways that impersonal cash rewards cannot.
With giving the gift of cinema, you’re also giving an experience that both employees and consumers can enjoy on their own terms. Be it at their choice of cinema, with their friends, family and at a time that suits them.
Oh and of course, with such a galaxy of films to choose from, a cinema reward is something that literally anyone can enjoy.
Non-cash incentives allow people to distinguish recognition from compensation, whereas the perception of cash rewards can become muddied.
Cash rewards are also subject to tax and can get lost in amongst the rest of the money in someone’s account. After all, what’s the point in receiving a cash gift it slips out unnoticed whilst paying for your weekly shopping?
Those who earn non-cash incentives get a special satisfaction from receiving them, as they offer a guilt-free alternative to spending. For people who are trying to save for their next big purchase, they’re receiving the gift of something they’ll really enjoy. All without the worry of having to justify spending any of their precious cash!
These types of rewards facilitate communication and alignment because people feel free and at ease to talk about them.
In comparison, conversations about cash can come across as impolite, or even crass in some situations. After all, would you feel comfortable talking about your wages and bonuses with other people in your team?
This deeper value rings true across all manner of non-cash rewards – and the attraction of cinema is no different. In fact, over a whopping 75% of participants in a recent Filmology survey said they prefer to receive vouchers (including cinema rewards) instead of traditional, impersonal employee incentives.
You can’t argue with those figures!
TO INFINITY AND BEYOND
If anyone ever tells you that there’s no demand for non-cash incentives, you can tell them to think again.
The demand is indeed there and this has been reflected in the remarkable 17% growth in the non-cash incentives market since the Incentive Association/Incentive Federation’s last study three years previous. This just highlights the fact that there is a significant shift in the way everyone perceives motivational rewards. We very much doubt this trend will show any signs of slowing down soon…
CASH-FREE INCENTIVES IN ACTION
Looking a little deeper still, a 2014 report, assembled by Aberdeen Group and Incentive Research Foundation, consolidates this notion and still proves valid four years on.
The survey found that 63% of higher performing organisations show a clear preference for non-cash rewards. So, this clearly isn’t a flash in the pan movement.
They have a stronger, more positive impact on the bottom line of businesses. They also represent a more personable appeal to an audience’s willingness to participate in activities. These can include promotions, monetary-based subscription services or anything you’re looking to achieve in your promotions or own company’s culture.
The possibilities for their uses are genuinely limitless.
One environment where incentives are a necessity is the workplace. For business owners, they provide the opportunity to effectively motivate employees to buy-into their goals, visions and company culture. Plus, they’re a viable and effective alternative to simply inflating wages or cash bonuses.
The facts support this statement. Unsurprisingly, a massive 67% of companies use non-cash awards for employees (Incentive Federation) and 62% of employees say they prefer a tangible reward when asked about their incentive preferences (Incentive Marketing Association).
Clearly, the benefits are there for all to see.
There is another factor in play here which is also pushing the effectiveness of cash-free rewards. By 2020, millennials will form 75% of the global workforce (PWC). What’s more, this growing economic force is heading a progressive shift in work / lifestyle ideals with meaningful and engaging reward and recognition and its’ heart. The trend is set: three out of four millennial employees prioritise experience over tangible goods (PWC).
Workforce motivation and morale are indicators of a successful business environment – and cashless recognition programmes, such as experiential cinema rewards and incentives, can help nurture positive and productive behaviours in just about any workplace.
THE VERDICT IS IN…
Industries and organisations continue to lean on motivational rewards to inspire current and prospective audiences.
Non-cash incentives give people access to experiences that may otherwise sit outside of their budget restrictions. Cinema rewards incentives epitomise this.
The Incentive Federation attributes memorability to the efficacy of these types of incentives and expresses a depth in the way rewards can influence our behaviour.
From enhanced levels of communication between employee and employer, to company-wide enthusiasm for incentive programs, and a so-called addiction to earning rewards, the benefits are far reaching to say the least.
The crux of it comes down to an increasing awareness of the modern expectations coming from the younger generations, emerging talented professionals and all manner of consumers.
To encourage engagement and motivate performance, businesses, organisations and institutions need to build relationships with their audiences. How? Through engaging and relevant cashless incentive programs and rewards.