incentives

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. 

The Cure for Employee Burnout? Incentive Travel

Have you ever wished you had more vacation days? Most of us probably have, which is why it’s surprising to find that there are many people who not only have trouble using up all their vacation days, but actually refuse to take any days off at all.

Find it hard to believe? Well, many offices have at least one person like this. Research has found that in the U.S., about 15% of employees have not taken vacation in the past year. 

There can be several reasons why employees feel the need to skip their vacations: hope of advancing their careers; fear of returning to a backlog of emails and work; the increase in self-esteem that comes from feeling needed at the office; or the perception of “taking one for the team” by letting others go on vacation instead.

But in the long run, many of these people eventually see the negative effects that come from nonstop work. The lack of time away from the office becomes damaging not only to their own health and personal lives, but also to their relationships with others.

Employers are realizing too that nonstop work for their employees is damaging in the long-term to their productivity at work.

It is apparent that some employees are in desperate need to get away for a while. In fact, according to this Wall Street Journal article, some employers are even offering cash for employees to take their vacations. They realize that when their employees return from their vacation, they come back refreshed and even more productive than before.

Wall Street Journal’s Work & Family Columnist Sue Shellenbarger had the chance to talk to some employees who had not taken time off in years and were finally allowing themselves to take a vacation. Even though it took them a few days relearn how to enjoy their time off, every single one of them saw the benefits. By the end of their vacation, they felt better and got a fresh perspective on things.

Incentive Travel: A Win-Win

In light of these findings, what might be an even better option than cash is to offer incentive travel. Incentive trips can take the stress off the employees who are fearful of taking vacation, because a company-sanctioned trip allows employees to freely relax with their spouses, families, and colleagues. It also helps them forge and build on relationships with their colleagues and leaders, outside of the pressures of the office.

This helps increase the health and wellbeing of employees and improves their personal lives and relationships. And with employees feelings well-rested and renewed after the trip, it’ll sure help them be even more productive, which in turn is a valuable benefit for everyone.