In the past, business owners often used to provide cash rewards to staff who went above and beyond the call of duty. However, whilst cash bonuses have always been well appreciated, many employers are finding that staff members actually prefer to receive gifts instead. Why are gifts a more compelling incentive than cash based rewards? Keep reading to find out.
1. Trophy ValueMost employees who receive cash based incentives will spend the money on daily living, and won’t actually have anything to show for it once the money has been spent. Gifts, on the other hand, have a form of trophy value, which an employee can look back upon far into the future. Whether you choose to gift an employee with tickets to a sporting event, a personalized item, or even a box of freshly baked Gimmee Jimmys cookies, these corporate incentive ideas will act as a lasting reminder of your appreciation.
2. Not Seen as CompensationWhen you give an employee a cash based reward, it can be viewed as compensation for the task that they completed, or the extra hours they worked. However, when you choose to provide them with a gift, the reward is seen in a completely different light, and is often much more appreciated than a cash based incentive would be. Employees also don’t need to pay tax on gift rewards, whereas they might do with cash incentives depending on the amount received.
3. More Likely to Improve Work Performance
According to Forbes, gift rewards are much more likely to improve work performance than cash based incentives. Again, this could be due to the trophy value mentioned above. When an employee sees an item on a daily basis, they are more likely to feel appreciated than if they had just used a cash reward to pay off a credit card debt or an energy bill. If you think about it this way, you aren’t just making your employees happy, but you’re making them more motivated too; something which will have lasting benefits for your company.
4. It’s More PersonalCash based incentives are not very personal, and even gift cards can come across as a hastily given reward. A gift requires much more thought, and if you choose something that the recipient will really like, they are sure to appreciate it and the thought a lot more. Think about the things that your employees have told you about their life. If they have a family, you could consider getting them something that every member of the clan will enjoy. Or, if they follow a sporting team or are into a specific hobby, this can be another idea.
If you want to reward an employee or a team for the work they have done for you, don’t just give them a cash reward or a gift certificate. Instead, think about the things that they enjoy and gift them with something personal. It is sure to be much more appreciated.