Are you are a decision maker at your company, and is it time to reward your employees? If so, now, you have a choice as to what kind of reward you give your employees. Do you give them a cash or non-cash award? What are the benefits of each one?
Cash Awards
Cash awards include salary increases, profit sharing, stock options, cash bonuses, and additional paid vacation. Of course your employees will appreciate these rewards, but once they use them up, will they remember why they were rewarded and what they received from you?
Non-Cash Awards
By contrast, non-cash awards are things like crystal awards, trophies, and gifts. These items have a lasting effect, becoming a constant reminder of their reward. These items are not something they’ll use once and quickly forget.
You may think, “But my employees say they want cash and gift cards!”
Of course they do.
They want to be able to pay bills, buy groceries, and make other purchases. Cash is taxable and viewed as income while awards are a gift. So if you hand them $100, that’s only worth $100 dollars. If you hand them an award that cost you $100, they don’t know the monetary value. It may be worth well more than $100 to them after they receive it. So the monetary value of an award or gift is immeasurable.
The Payoff
What’s important is the payoff. What do you get and what do your employees get with a cash award versus a non-cash reward?
With cash rewards, employees don’t always use their monetary reward to buy something special and lasting; giving it a short-term effect. As soon as it’s spent, the reward is gone.
By contrast, non-cash rewards are a constant reminder of the employee’s success, they feel special because they can link their efforts to an outcome and corresponding trophy. Some organizations can even link an increase in employee performance as a result of recognition.
A crystal award like the Majestic Award is a perfect example of a great non-cash reward. This award will sit on a desk or mantle acting as a constant reminder of your appreciation for their hard work. Present the award in a meaningful way, and this award becomes even more valuable to your employee!
You may insist, “But my employees REALLY want cash and gift cards!”
If that is truly the case, give cash or gift cards in tandem with a symbolic reward. For example, present the Majestic Award to a deserving recipient along with a gift card to their favorite restaurant to show that you pay attention to the things they like.
The Bottom-Line
The bottom line is this – your employees are people, which means they want to be recognized for their efforts. They are valuable and need to be told that they make a difference in their work. When you capitalize on an opportunity to show your gratitude, you will get positive results. Offering a symbolic award will make the most of your effort.
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