We’ve all heard the saying “Cash is King,” but it’s not the best reward currency for your company incentive, or recognition and reward program. Ask ten employees whether they would be more motivated by cash or brand-name merchandise, and eight out of ten will likely choose cash. While cash awards may provide instant gratification, they aren’t memorable. Ask a participant in a cash-based incentive program what they did with their $100 award two months later, and most won’t be able to tell you.

On the other hand, I recently spoke to an attendee at a trade show about best practices in recognition and reward programs. They eagerly shared the story of a fishing pole they earned ten years ago through their employer-sponsored safety recognition and reward program. They still have and use the pole to this day—a stark contrast to the fleeting nature of cash rewards.

Cash is easy to use but often gets mixed up with overall compensation. As a motivator, it’s an unemotional award. Its value is concrete, and while it could be used to purchase something special, it’s more likely to be used to pay bills or deposited into a checking account, where it soon ceases to exist. Along with the disappearance of the cash award goes the memory of its origin.

Non-cash incentives, however, are distinct from compensation. Brand-name merchandise, event tickets, and experiential travel are memorable and aspirational. These are items participants often can’t justify splurging on or purchasing themselves. If a participant values an item highly but wouldn’t purchase it, then the opportunity to earn it as a reward for achievements like being safe, making a pledge, mentoring, training, completing a survey, passing a quiz, length of service, or peer-to-peer recognition is highly likely to drive engagement and desired behavior.

Tangible rewards have an inherent ability to memorialize participation, exceptional performance, dedication, milestones, and more. Every time a tangible reward is used—whether it’s a Nespresso machine, Scotty Cameron putter, Weber grill, Coach handbag, Dell Chromebook, or Daiwa fishing pole—it serves as a reminder that the employer cares and that the employee’s efforts are sincerely appreciated and noticed. People have an inherent need to be recognized!

Recognition and reward programs should offer a wide variety of awards across different product categories. This variety is enticing and allows participants to visualize themselves receiving and enjoying the award. A popular feature in the All Star Incentive Marketing Rewards platform, PROPEL™, is the “Wish List,” feature which allows participants to tag items they like. The system notifies them when they’ve earned the required points for redemption. Whenever possible, celebrate achievements publicly when group and individual goals are met. Share these successes on your social channels and intranet. If you have a dedicated rewards platform, highlight individuals in news stories, on leaderboards, and in scrolling hero graphics.

If you’re currently using cash incentives, you may encounter pushback from employees when migrating to a non-cash rewards program. However, this normal reaction will be short-lived as program participants begin earning, banking, and redeeming points for tangible awards.

To learn more about the benefits of using non-cash rewards to drive employee engagement, promote group goals, reward individual behavior, and maximize your ROI² (Return on Incentive Investment), feel free to schedule a quick demo (see the link below). We can share best practices and show you live program examples.