For years, businesses have understood the benefits of recognizing and rewarding deserving employees. But there is a trend that is now picking up among employers; there has been a recent shift away from regular cash bonuses and standard corporate gifts to gifting experiences.
There are manifold reasons behind the new direction and they are more than convincing. An experiential gift is unlike a material gift; it offers your recipient the chance to try something new and create lasting memories. It is not just about appreciating the employee, but also about giving them a memorable time that they will cherish, hence associate that memory with their experience in the company.
Experiences serve as a great motivational incentive and add to employees’ personality development program. They do something that cash, shopping vouchers, bonuses, and material gifts can’t.
Non-cash Rewards over Cash
According to studies published in the Incentive Research Foundation (IRF), most employees would choose non-cash rewards over cash as they create lasting memories and positive associations with the organization that provided the reward.
Therefore, going that extra mile to reward your employees with something that has genuine thought behind it will have a lasting effect. Experience days are something that your employees may not have thought to do or something they have not been able to afford, and that’s what makes them an extraordinary employee reward.
Here are the key advantages of non-cash rewards over cash:
- Non-cash is more effective at achieving goals.
Employee incentives don’t exist just to entice new talent. One of their primary functions is to help the company meet specific goals, either by driving more sales, increasing revenue, or producing some other return on investment. If you want your incentives to achieve their aims, non-monetary is best. Research shows that companies that had a well-conceived incentive program in place saw average gains in productivity of 44 to 48% within the first six months. - Non-cash is a more effective motivator.
While cash is useful, it’s not something that can be used to make an emotional connection. A dollar is a dollar, but to a Packers fan or a hiker, a trip to Lambeau Field or Wadi Helo is truly priceless. The emotional elements of non-cash rewards make these items seem to have a higher value than cash in the participant’s mind. - Non-cash is special.
Cash rewards, even when created as a separate bonus scheme, are often seen as part and parcel of an employee’s overall salary and compensation, rather than as a reward in and of itself. Cash can easily be lost in the shuffle — recipients will most likely do something fairly sensible with it. They might spend it on groceries or bills, or put it straight into a savings account. While this is certainly useful, it’s not something that they’re going to remember six months down the line if asked what they spent their employee rewards on. However, when incentivised with something tangible, such as event tickets or electronics, employees will think of the company every time they recall the event or use the item. This will mean they’ll positively associate that reward with their employer. - Non-cash is more personal.
A monetary reward doesn’t require much thought; you’re giving the same thing to everyone. However, a non-cash reward will feel much more personal, especially if your employees are given a say in the incentive they receive. - Non-cash rewards can make more people happy.
Loved ones and friends can join in the fun of non-cash rewards, which reinforces a positive PR. They create memorable experiences that can be shared with loved ones and a positive association with the sponsoring company (“We’re going on a helicopter trip courtesy of XYZ Company!”) They elevate interest and motivation by participants who want to earn something that others can enjoy. - A non-cash reward is memorable.
Luxurious, non-cash rewards are palatable indulgences, whereas the participant may feel irresponsible or selfish spending a cash reward to acquire such luxuries, the reason why non-cash reward highly coveted. - There are pride and sense of accomplishment associated with non-cash rewards.
It is more socially acceptable to (and interesting) to tell the story of how you earned a non-cash item. An employee might talk about how he/she has earned a splendid wine decanter, but not brag he/she was given $150. This makes your employees feel good about their achievements. In addition, cash can become an entitlement, whereas when someone has the opportunity to earn a non-cash reward, it tends to be perceived as an added bonus and specifically earned for a particular achievement.
How Dreamdays Gamify Corporate Reward Programs
Dreamdays offers a huge range of corporate experiences that are perfect for your employees and customers in doing/giving Reward & Recognition, Long Service Awards, Gifts, Prizes, Standalone Events. It gives you access to a range of over 300+ experiences. From cruises, spa treatments, hotel accommodations, and local excursions to holiday travel packages in the UAE and beyond, there’s a meaningful reward for everyone.
With Dreamdays, you can tailor your corporate gift experience to be just as unique as the recipient, delivering more than just a tangible object, but a memory that will stay with that person forever. They’re easy to work on and easy to use, with plenty of different gifting options like gift vouchers, gift cards, instant e-codes, and collections vouchers, and they’re simple to redeem too.
We have highly trained gift advisors that suggest the best gift based on different aspects such as age, occasion, preference, price, etc, and gifts are personalized, tailored to be remembered forever. They are presented in colored vouchers which can be acquired over the phone or from certain outlets such as Geant etc. Dreamdays vouchers are unique by being valid for 12 months and allowing the recipients the choice to use them at their convenience. The recipient can also enjoy the freedom to exchange the experience for another free of charge.
Monetary rewards are quickly becoming a thing of the past, so, don’t shy away from the idea – embrace it. Your workforce will thank you for it.
