incentive travel

If you must give a non-cash reward…

It's a fact: According to the Incentive Federation, 81% of businesses use non-cash rewards to

recognize their top-performing employees.  In fact, US businesses spent over $90 billion last year on non-cash incentives. Clearly, businesses recognize the impact of non-cash incentives on their bottom line.  With that recognition, the dilemma becomes what non-cash rewards to put on the table to motivate the best performance the company could hope for. While incentive travel remains the number one sought-after non-cash reward by high achievers, there are companies that consider merchandise incentives as viable alternatives. 

With a dizzying array of options from which to choose, it's difficult to decide which merchandise reward will provide the most bang for the buck. Here are three important criteria in choosing the right reward. 

1. Brand-Name. 

Use brand-name merchandise. Incentive winners don't particularly crave a no-name product they might buy on their own or view with disparagement. Millennials in particular covet splurge items like brand-name electronics and watches. The reason? They're 27 percent less likely to spend their money on luxury products than their Generation Xer counterparts, according to a recent TD Bank study. So, presenting them with a high-end item they can't/won’t purchase on their own will score a huge win.

2. Go Classic.

Choose items that recipients are likely to hold onto for years to come, like a classic watch, suggests Adrienne Forrest, vice president of corporate sales for Bulova. "Watches are so special because they have an heirloom quality to them, so you can pass them on to a child or family member," she says. The longer a recipient keeps an item, the stronger the bond they'll have with the company that gave it to them. 

3. Be Creative. Be Personal.

Contrary to popular belief, in the case of non-cash rewards, “tried and true” may not be the best way to go. The recipient must feel that some quality thinking went into the choice of the reward to make them feel special. Millennials covet different items than Baby Boomers.  A little research may help buy significant goodwill with the recipient. Regardless of the company’s size, rewards can be made personal. The traditional “gold watch” to a retiree does not particularly motivate an up-and-coming young executive.  Put some thought in the whole process.

Bewildered by all the criteria and the choices in deciding a non-cash reward for your top-performing employees? There is one “tried and true” reward you can fall back on and rest assured that it will be universally coveted by all—and that is incentive trips.  Incentive trips are one category of non-cash rewards that candidates in a survey unanimously voted as the best.  

Our bet is also on incentive trips. Let the Maxxus Group put forward viable non-cash rewards that would meet your corporate goals and motivates your key personnel to reach for the proverbial stars.