You've come to this page wondering how to improve morale, recognize and reward your employees. Or perhaps your current Employee Recognition program is not meeting your goals, or the Return On Investment of your current Employee Recognition program has caused you to look for other alternatives.

There are several important keys to creating and implementing a successful Employee Recognition Program...

Key Point #1

Employee Recognition Program buy-in from your employees is important, but only after the basic program concepts have been determined by you. In other words, it is unlikely a Employee Recognition program based upon an employee survey will be successful in meeting your Employee Recognition program goals.

WHY???  Simple... everyone* prefers cash.  (*not always - see the article on Sales Incentive Programs).  Unfortunately cash is the least effective method of Employee Recognition.  Specifics of an industry study which detail statistical disadvantages of cash Employee Recognition award programs are found here: Incentive Industry Survey.

The bottom line: 50% of employees who receive cash Employee Recognition awards in the proceeding year either do not remember what they used it for, or used it to pay down credit card debt.  While everyone wants cash, it is seldom utilized or remembered the way merchandise or travel is.

Now, as an example, lets look at merchandise (specifically on-line merchandise award programs) or Employee Recognition programs utilizing travel awards. I often say to prospective clients, who usually have had some personal successful sales experience - think back...  remember the times you received cash?  Do you even remember what it was for?  Now think about merchandise awards...I'll bet you not only remember what you got it for, but have fond memories of receiving it, hoping to earn similar awards in the future!

Key Point #2

The point is, there's a scientific reason for the success of Employee Recognition programs which utilize travel and merchandise:  It's the BRAIN, or more precisely, how the brain functions!

Research shows that the way the brain processes information is responsible for non-cash rewards having a greater impact on people than cash awards. Offers of non-cash rewards are visualized or imaged by the right hemisphere of the brain. Such images or mental pictures trigger emotional responses which can be quite powerful.

Conversely, offers of strictly monetary rewards are processed by the left hemisphere, which lacks the ability to create images. When a monetary offer is received, the brain's left hemisphere assesses the information and determines whether the offer is sufficient, relative to the time or effort required to earn it. The emotional response is what drive behavior, not rational thought. With cash, its reduced to one issue - simply how much.

Got it?  Here's the basic equation:
Cash = Left Brain-(Analytical Side)/How Much$$$?
Merchandise and Travel = Right Brain-(Emotional)/Fantasy

That's why Employee Recognition award programs utilizing merchandise and/or travel awards are 3X (Three Times) more effective than Recognition programs using just cash rewards, as shown below.

Key Point #3

"Take as much as you want, just clean your plate".  Did you get that as a kid?  I did... the key here is that from our youngest years, most of us are taught NOT TO BE WASTEFUL.  This translates to - "Hey, if you get a cash award, spend it wisely... constructively... don't waste it on toys or vacations when there are more pressing things that need attention... that new roof, for example. Figure 2 below, demonstrates that over 70% of respondents feel that purchasing a merchandise or travel award, such as the one(s) typically offered in an Employee Recognition on-line award program, would not be a justifiable expense.
Voila!  Using cash to reward??? Hello new roof! Goodbye Employee Recognition!

Key Point #4

Do not lightly undertake any Employee Recognition program lightly.  Talk to experts first.  Once you start a cash or gift card program, it’s very hard to take it away.

Many companies find out the hard way, once they've begun a cash-based employee reward program and realize it was a mistake - and employees perceive the change as a negative, take-away move.

Instead, work to slowly wean off of cash over a period of 3 years. Structuring the change carefully makes it easier to swallow for your employees.

For more info on structuring a successful Employee Recognition program, talk to us first: info@worldincentives.com, or request info online at http://worldincentives.com/quotes.htm

See also:

http://worldincentives.com/products.html
http://worldincentives.com/merchandise.html
http://worldincentives.com/luxury-escapes.html